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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
CLB None None
FCX    
FTI    
JOYG    

Play Editor's Note: A few stocks we're watching...GME and XTO look like potential bullish candidates. A move over 62.50 for XTO could be an entry point. The FXI has broken down and could sink toward the $115-110 zone but we didn't want to chase it here. SLG also looks like a short if it breaks $79.00 but be wary of the above average short interest! We're also watching LFC and ATK, which look weak.


New Calls

Core Labs - CLB - close: 122.40 chg: -0.74 stop: 117.99

Company Description:
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. (source: company press release or website)

Why We Like It:
Crude oil at triple digit highs should mean big business for the oil service companies. Shares of CLB have out performed the market this past week and look poised to move higher. Traders bought the dip near $120 on Friday afternoon. More aggressive traders could buy calls now. Since we are more than a little cautious on the market right now we'd rather see some confirmation higher. Thus, we're suggesting readers use a trigger to buy calls at $125.25. There is potential resistance near $130 so we're setting our first target at $129.85-130.00. We do think CLB will breakout past $130 sooner rather than later so we're setting a second target in the $137.50-140.00 zone.

Suggested Options:
Our suggested entry point is $125.25. We are suggesting the April calls.

BUY CALL APR 120 CLB-DD open interest=22 current ask $7.40
BUY CALL APR 125 CLB-DE open interest=47 current ask $4.80
BUY CALL APR 130 CLB-DF open interest=38 current ask $3.40
BUY CALL APR 135 CLB-DG open interest=27 current ask $2.30

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/23/08 (unconfirmed)
Average Daily Volume = 295 thousand

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Freeport-Mcmoran - FCX - cls: 101.61 chg: -1.78 stop: 98.99

Company Description:
FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the worlds largest producer of molybdenum. (source: company press release or website)

Why We Like It:
Commodities will continue to be market leaders so why not play one of the largest commodity producers in the world? FCX has been out performing the S&P 500 and looks like it's on the verge of breaking out from a bull flag pattern. The intraday high on Friday was $105.44. We are suggesting a trigger to buy calls at $105.51. There is potential resistance at $110. We're setting a minor target to take some profits at $109.85-110.00. However, our main target is the $117.50-120.00 zone. Normally we suggest taking the lion's share of the position off at the first target. This time aim higher.

Suggested Options:
Our suggested trigger to buy calls is at $105.51. If triggered we would use the April calls.

BUY CALL APR 100 FCX-DT open interest=11319 current ask $8.05
BUY CALL APR 105 FCX-DA open interest= 5164 current ask $5.45
BUY CALL APR 110 FCX-DB open interest=11204 current ask $3.65

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 13.7 million

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FMC Tech. - FTI - close: 58.18 chg: +0.79 stop: 54.45

Company Description:
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. (source: company press release or website)

Why We Like It:
FTI is another oil service stock that looks set to run. Shares just broke through a bull flag pattern. There is potential resistance near $60 but given the sky-high oil and gas prices we expect FTI to push past the $60 mark. Shares have additional resistance near $65.00. We are aiming for the $64.00-65.00 range.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 55.00 FTI-DK open interest= 658 current ask $5.80
BUY CALL APR 60.00 FTI-DL open interest=2065 current ask $2.90
BUY CALL APR 65.00 FTI-DM open interest= 684 current ask $1.35

Picked on March 16 at $ 58.18
Change since picked: + 0.00
Earnings Date 05/08/08 (unconfirmed)
Average Daily Volume = 2.2 million

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Joy Global - JOYG - close: 68.80 chg: -1.75 stop: 67.45

Company Description:
Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through P&H Mining Equipment and underground mining through Joy Mining Machinery. Joy Global, Inc. (source: company press release or website)

Why We Like It:
JOYG is in the mining equipment industry and given the world's rising demand for commodities business appears to be doing very well. The stock is trading near all-time highs around $72.00. If this momentum keeps up JOYG will be in blue-sky territory. We are suggesting that readers buy calls at $72.50, which would be a new all-time high. If triggered our target is the $78.00-80.00 zone. Currently the Point & Figure chart is bullish with an $86 target. Now we do want to warn readers that early this month JOYG's CFO quit. No reason was given for his departure. Normally when the CFO resigns it's not a good sign but investors don't appear to be worried and the next earnings date isn't until late May.

Suggested Options:
Our suggested entry point to buy calls is $72.50. If triggered we would use the April calls.

BUY CALL APR 70.00 JQY-DN open interest=4316 current ask $4.40
BUY CALL APR 75.00 JQY-DO open interest=2011 current ask $2.40

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/29/08 (unconfirmed)
Average Daily Volume = 2.4 million
 

New Puts

None today.
 

New Strangles

None today.
 

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