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None NIHD None
  PCP  
  SHLD  

New Calls

None today.
 

New Puts

NII Holdings - NIHD - close: 39.73 change: -0.74 stop: 41.26

Company Description:
NII Holdings, Inc., a publicly held company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holdings, Inc. has operations in Argentina, Brazil, Mexico, Peru and Chile offering a fully integrated wireless communications tool with digital cellular voice service, data services, wireless Internet access and Nextel Direct Connect and International Direct Connect(TM), a digital two-way radio feature. (source: company press release or website)

Why We Like It:
The overall trend in NIHD is very bearish and the stock looks poised to breakdown from its four-week sideways trading range. We are suggesting readers use a trigger at $38.95 to buy puts. If triggered our target is the $35.50-35.00 zone. More aggressive traders could aim for the trendline of lower lows. The Point & Figure chart is bearish with a $19 target. FYI: The latest data lists short interest at 3.8% of the 171.7 million-share float, which is only about 1.5 days worth of short interest.

Suggested Options:
Our suggested entry point is $38.95. We are suggesting the April puts.

BUY PUT APR 40.00 QHQ-PH open interest=1002 current ask $3.40
BUY PUT APR 35.00 QHQ-PG open interest= 241 current ask $1.40

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/27/08 (confirmed)
Average Daily Volume = 3.3 million

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Precision Castparts - PCP - cls: 110.39 chg: -5.09 stop: 112.65

Company Description:
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets. (source: company press release or website)

Why We Like It:
It's probably not a coincidence that the oversold bounce in PCP just happened to stall near the 38.2% Fibonacci retracement level of its December-January sell-off. That oversold bounce is rolling over and Friday left the stock clinging to round-number support near $110. We strongly suspect that PCP could retest its lows near $100 at which point we might start to turn short-term bullish on it. We are currently suggesting that readers use a trigger at $109.49 to buy puts. If triggered our target is the $101.00-100.00 zone. The most challenging part of this trade is our stop loss placement. After Friday's 4.4% decline knowing where to put the stop is tough. The $112 area looks like a good spot but just to give PCP a little room to move we're suggesting a stop at $112.65. FYI: It is worth noting that the P&F chart is still bullish, for now. Plus the short interest is only about 1% of the float.

Suggested Options:
Our suggested entry point to buy puts is $109.49. We are suggesting the April puts.

BUY PUT APR 110 PCP-PB open interest= 41 current ask $6.60
BUY PUT APR 105 PCP-PA open interest= 30 current ask $4.50
BUY PUT APR 100 PCP-PT open interest= 71 current ask $2.85

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/08/08 (unconfirmed)
Average Daily Volume = 1.9 million

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Sears Holding - SHLD - close: 95.62 change: -5.78 stop: 100.51

Company Description:
Sears Holdings Corporation is the nation's fourth largest broadline retailer with over $50 billion in annual revenues and approximately 3,800 full-line and specialty retail stores in the United States and Canada. (source: company press release or website)

Why We Like It:
We are going to take another swing at SHLD. Last time we were triggered on an intraday low and the market rallied sharply on us lifting SHLD above resistance. Now that earnings are out of the way and there are increasing signs of a U.S. consumer-lead recession, we don't see any reason for investors to buy SHLD at current levels. We are suggesting a trigger to buy puts at $94.00. More aggressive traders may want to jump in early under $95.00. If we are triggered at $94.00 our target is the $85.50-85.00 zone near its January lows. Looking at the weekly chart and its bearish channel more aggressive traders may want to aim for $80 but we would expect a bounce near $85.00. FYI: A breakdown under $94 would produce a new triple-bottom breakdown sell signal on the Point & Figure chart. There are a lot of investors who believe SHLD is going lower. The most recent data puts short interest at more than 19% of the 65 million-share float. That is almost 7 days worth of short interest. Naturally that raises our risk of a short squeeze.

Suggested Options:
Our suggested entry point is $94.00. We are suggesting the April puts.

BUY PUT APR 100.0 KTQ-PT open interest=12602 current ask $9.70
BUY PUT APR 95.00 KTQ-PS open interest=15745 current ask $6.70
BUY PUT APR 90.00 KTQ-PR open interest= 1495 current ask $4.40
BUY PUT APR 85.00 KTQ-PQ open interest= 2252 current ask $2.70

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/28/08 (confirmed)
Average Daily Volume = 2.8 million
 

New Strangles

None today.
 

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