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ATK None None
BGC    
ESRX    
IBM    

New Calls

Alliant Tech - ATK - close: 106.78 chg: 0.83 stop: 104.85

Company Description:
ATK is a premiere aerospace and defense company with more than 17,000 employees in 21 states and over $4.1 billion in revenue. (source: company press release or website)

Why We Like It:
The recent market strength has allowed the DFI defense sector index breakout past technical resistance at its 200-dma and 100-dma. The group looks like it may have put in a bottom over the last three months. In a similar fashion ATK may have built a bottom of sorts over the last few months. Shares are now marching higher and look poised to rally past their own 100-dma and 200-dma soon. If you look at the intraday chart Friday's trading looks like a new entry point to buy calls. However, we do expect a dip in the major averages this week so we'd rather buy a dip in ATK. We are suggesting readers buy calls on a pull back into the $106.00-105.50 zone. We'll use a tight stop at $104.85 to reduce our risk. If triggered we have two targets. Our short-term, immediate target is $109.90. Our second, more aggressive target is the $114.00-115.00 zone. Keep in mind that Lockheed Martin (LMT) another defense company reports earnings on April 22nd and their results could strongly influence ATK's share price. FYI: A move over $110 would reverse the Point & Figure chart into a new buy signal. We do not want to hold over the May 8th earnings report.

Suggested Options:
Our suggested trigger is $106.00. We are suggesting the May calls. FYI: It is up to the individual trader to decide which month and which strike price best suits your trading style and risk on all of our suggested plays.

BUY CALL MAY 105 ATK-EA open interest=203 current ask $4.50
BUY CALL MAY 110 ATK-EB open interest=576 current ask $1.85

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 05/08/08 (confirmed)
Average Daily Volume = 246 thousand

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General Cable - BGC - close: 71.37 chg: 4.16 stop: 64.99

Company Description:
General Cable, headquartered in Highland Heights, Kentucky, is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. (source: company press release or website)

Why We Like It:
Shares of BGC soared more than 6% on Friday following a bullish breakout over resistance on Wednesday and Thursday. Volume came in strong on the rally, which is a good sign for the bulls. We want to buy a dip. We're suggesting readers buy calls on a pull back into the $68.50-67.50 zone. If triggered our target is the $74.00-75.00 range. We do not want to hold over the April 29th earnings report so that's not a lot of time. The Point & Figure chart is bullish with an $83 target.

Suggested Options:
Our suggested trigger to buy calls is $68.50. We're suggesting the May calls but plan to exit ahead of the April 29th earnings report. Option prices are probably a little inflated on the big rally so a dip should see them deflate quickly.

BUY CALL MAY 65.00 BGC-EM open interest=1669 current ask $8.70
BUY CALL MAY 70.00 BGC-EN open interest=1391 current ask $5.40
BUY CALL MAY 75.00 BGC-EO open interest= 972 current ask $3.00

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 04/29/08 (confirmed)
Average Daily Volume = 841 thousand

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Express Scripts - ESRX - close: 68.76 chg: 1.73 stop: 64.95

Company Description:
Express Scripts, Inc. is one of the largest pharmacy benefit management (PBM) companies in North America, providing PBM services to 55 million patients through facilities in 13 states and Canada. Express Scripts serves thousands of client groups, including managed-care organizations, insurance carriers, third-party administrators, employers and union-sponsored benefit plans. (source: company press release or website)

Why We Like It:
Friday's rally over $68.00 looks like a new bullish entry point to buy calls in ESRX. However, we're expecting a dip in the major market averages so we'd rather buy a dip in ESRX too. We're suggesting readers buy calls when ESRX falls into the $67.50-66.50 range. The company is due to report earnings on April 29th and we don't want to hold over the announcement so that's not a lot of time. Our target is the $72.50 mark. The P&F chart is bullish with an $81 target.

Suggested Options:
Our suggested entry point is a dip into the $67.50-66.50 range. We're suggesting the May calls but plan to exit ahead of the April earnings.

BUY CALL MAY 65.00 XTQ-EM open interest=6360 current ask $5.40
BUY CALL MAY 70.00 XTQ-EN open interest=2367 current ask $2.45

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 04/29/08 (confirmed)
Average Daily Volume = 3.1 million

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Intl.Bus.Mach. - IBM - cls: 124.40 chg: 1.32 stop: 118.49

Company Description:
International Business Machines Corporation is one of the largest technology and IT services company in the world with revenues approaching $100 billion a year.

Why We Like It:
IBM helped kick off the strength in tech stocks with a better than expected earnings report on April 16th. Shares broke through resistance at the $120 level and are currently trading near multi-year highs. The high-volume breakout is a buy signal but we don't want to chase it. Instead we're suggesting readers buy a dip in the $120.75-120.00 zone. If triggered we'll have two targets. Our first target is the $124.90-125.00 range. Our second target is the $128.00-130.00 zone.

Suggested Options:
We are suggesting the May calls or July calls. Our trigger to buy calls is at $120.75.

BUY CALL MAY 120 IBM-ED open interest=8109 current ask $6.00
BUY CALL MAY 125 IBM-EE open interest=7139 current ask $2.80

BUY CALL JUL 120 IBM-GD open interest=6467 current ask $8.60
BUY CALL JUL 125 IBM-GE open interest=6130 current ask $5.60

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 04/16/08 (confirmed)
Average Daily Volume = 8.8 million
 

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