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HD None None
HSC    
IMCL    

New Calls

Home Depot - HD - close: 29.87 chg: +1.07 stop: 28.99

Company Description:
The Home Depot is the world's largest home improvement specialty retailer, with 2,258 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China. In fiscal 2007, The Home Depot had sales of $77.3 billion and earnings from continuing operations of $4.2 billion. (source: company press release or website)

Why We Like It:
Home Depot made some headlines today, not for its ongoing plans to open new stores but the news that it will close 15 stores that are under performing. The company said that earnings are still expected to fall 19% to 24% in 2008. Yet the stock rallied anyway, posting a 3.7% gain. The rally stalled right at its 200-dma and 200-ema. We think that HD will break through this level. The current quarter may not be so bad as Americans start to get their tax rebate/stimulus checks. We're suggesting readers buy calls when HD hit $30.55, which would be a technical breakout. If triggered our target is the $34.00-35.00 range. We do not want to hold over the May 20th earnings report.

Suggested Options:
We're suggesting the June calls. Our suggested entry point is $30.55.

BUY CALL JUN 30.00 HD-FF open interest=10112 current ask $1.41
BUY CALL JUN 32.50 HD-FZ open interest= 5759 current ask $0.47

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/20/08 (confirmed)
Average Daily Volume = 17.0 million

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Harsco - HSC - close: 60.38 change: +1.05 stop: 57.99

Company Description:
As one of the world's leading diversified industrial services companies, Harsco Corporation serves major customers in key industries that play a fundamental role in worldwide economic growth and development, including non-residential construction and infrastructure, metals and minerals, railways, and energy. The Company posted 2007 revenues of $3.7 billion and operates in 50 countries worldwide. (source: company press release or website)

Why We Like It:
The technicals on HSC are improving almost across the board. Traders bought the dip and the P&F chart is bullish with a $78 target. We're suggesting readers buy calls now. We'll put the stop at $57.99. Our four-week target is the $64.50-65.00 range.

Suggested Options:
We are suggesting the June or July calls. Remember, it is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL JUN 60.00 HSC-FL open interest= 41 current ask $3.60
BUY CALL JUN 65.00 HSC-FM open interest= 14 current ask $1.55

BUY CALL JUL 60.00 HSC-GL open interest=114 current ask $4.50
BUY CALL JUL 65.00 HSC-GM open interest=496 current ask $2.40

Picked on May 01 at $ 60.38
Change since picked: + 0.00
Earnings Date 04/22/08 (confirmed)
Average Daily Volume = 613 thousand

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ImClone Sys. - IMCL - close: 48.07 change: +1.42 stop: 45.85

Company Description:
ImClone Systems Incorporated is a fully integrated biopharmaceutical company committed to advancing oncology care by developing and commercializing a portfolio of targeted biologic treatments designed to address the medical needs of patients with a variety of cancers. The Companys research and development programs include growth factor blockers and angiogenesis inhibitors. (source: company press release or website)

Why We Like It:
IMCL really looks ready to run. The stock has been consolidating sideways for more than seven months. The recent breakout and dip is a great looking entry point. We're suggesting readers buy calls now or anywhere in the 47.00-49.00 zone. We'll use a tight stop at $45.85. We have two targets. Our first target is the $54.00 level. Our second target is the $58.00 level. Please note that any time we play a biotech company it is considered an aggressive, higher-risk play. You never know when an FDA decision or some clinical trial result might come out and send the stock gapping one direction or the other at which point our stop loss might become worthless.

Suggested Options:
We are suggesting the June calls.

BUY CALL JUN 45.00 QCI-FI open interest= 1207 current ask $5.60
BUY CALL JUN 50.00 QCI-FJ open interest= 4484 current ask $3.10
BUY CALL JUN 55.00 QCI-FK open interest=15007 current ask $1.50

Picked on May 01 at $ 48.07
Change since picked: + 0.00
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 1.6 million
 

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