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RIMM FNM None
  JNPR  

New Calls

Research In Motion - RIMM - cls: 120.98 chg: +2.91 stop: 116.49

Company Description:
Research In Motion (RIM) is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. (source: company press release or website)

Why We Like It:
RIMM continues to show relative strength and the recent bounce from its short-term trendline of support (higher lows) looks like a new bullish entry point to buy calls. Our biggest concern would be a sell-off in the NASDAQ or a sell-off in rival AAPL that might spark profit taking in RIMM. We're suggesting call positions now with a stop loss under the recent low. We're listing a short-term target at $125.00 and a secondary target in the $129.00-130.00 zone. FYI: The Point & Figure chart is bullish with a $130 target.

Suggested Options:
We are suggesting the May calls. Double check your symbols. We got these from the CBOE but normally a May 115 is -EC and a May 130 is a -EF.

BUY CALL MAY 115 RUL-EU open interest=2474 current ask $11.25
BUY CALL MAY 120 RUL-ED open interest=3699 current ask $ 8.35
BUY CALL MAY 125 RUL-EE open interest=3609 current ask $ 5.90
BUY CALL MAY 130 RUL-EV open interest=2705 current ask $ 3.95

Picked on April 08 at $120.98
Change since picked: + 0.00
Earnings Date 06/26/08 (unconfirmed)
Average Daily Volume = 22.3 million
 

New Puts

Fannie Mae - FNM - close: 29.00 chg: -0.85 stop: 32.31

Company Description:
Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. (source: company press release or website)

Why We Like It:
FNM's huge rally in mid March produced a bullish reversal on the Point & Figure chart. Unfortunately for the bulls the follow through has been a little anemic. Shares of FNM are struggling with resistance at the descending 100-dma. All the news about congress trying to pass legislation about the homebuilders and helping the real estate market is not helping shares of FNM. This morning the stock was upgraded and that didn't help shares. There is the potential that the Citigroup news after the bell tonight (see tonight's wrap for details) could spark a rally in the financials. If that does occur then we would wait and watch for another failed rally in FNM near its 100-dma. We're suggesting puts at current levels and posting a stop loss at $32.31. More conservative traders may want to wait for a drop under its 50-dma near $28.70 before initiating positions. We are listing two targets. Our first target is the $25.25-25.00 zone. Our second target is the $21.00-20.00 zone.

Suggested Options:
We are suggesting the May puts. Strikes are available at $1.00 increments.

BUY PUT MAY 31.00 FNM-QQ open interest= 279 current ask $4.50
BUY PUT MAY 30.00 FNM-QF open interest=1071 current ask $4.00
BUY PUT MAY 29.00 FNM-QB open interest=2319 current ask $3.40
BUY PUT MAY 27.00 FNM-QW open interest= 851 current ask $2.50
BUY PUT MAY 25.00 NJW-QE open interest=6033 current ask $1.85

Picked on April 08 at $ 29.00
Change since picked: + 0.00
Earnings Date 05/27/08 (unconfirmed)
Average Daily Volume = 26.5 million

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Juniper Networks - JNPR - cls: 23.43 chg: -0.03 stop: 24.55

Company Description:
Juniper Networks, Inc. is the leader in high-performance networking. Juniper offers a high-performance network infrastructure that creates a responsive and trusted environment for accelerating the deployment of services and applications over a single network. (source: company press release or website)

Why We Like It:
The trading in JNPR has grown increasingly bearish. While the NASDAQ and the S&P 500 had rallied to resistance shares of JNPR were slipping toward support. Now the stock is flirting with a significant breakdown. The stock hit new relative lows today but we want to see a drop under $23.00. We're suggesting readers buy puts at $22.95. If triggered our target is the $20.15-20.00 zone. A move under $23.00 would reverse the P&F chart into a new sell signal. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the May puts but we plan to exit ahead of the April earnings. Strikes are available at $1.00 increments.

BUY PUT MAY 25.00 JUX-QE open interest=16434 current ask $2.45
BUY PUT MAY 23.00 JUX-QR open interest= 654 current ask $1.35
BUY PUT MAY 20.00 JUX-QD open interest= 2123 current ask $0.45

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 11.5 million
 

New Strangles

None today.
 

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