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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
CF None None
FDG    
MOS    
RIMM    

New Calls

CF Inds. - CF - close: 144.47 chg: -2.69 stop: 133.45

Company Description:
CF Industries Holdings, Inc., headquartered in Deerfield, Illinois, is the holding company for the operations of CF Industries, Inc. CF Industries, Inc. is a major producer and distributor of nitrogen and phosphate fertilizer products. (source: company press release or website)

Why We Like It:
At its lows today CF was down more than 20% from its highs. Yet the trend is still very bullish with a long-term pattern of higher lows. Traders bought the dip near its 100-dma. Volume was well above average. If the market has truly put in a short-term bottom (a.k.a. bear-market rally) then CF could produce a strong rebound. This is a more aggressive play because today's bounce was so sharp and we're suggesting a stop under today's low. Our target is the $159.00 mark.

Suggested Options:
We are suggesting the August calls. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL AUG 145.00 CF-HX open interest=3281 current ask $13.40
BUY CALL AUG 150.00 CF-HY open interest= 738 current ask $11.20
BUY CALL AUG 155.00 CF-HZ open interest= 881 current ask $ 9.30

Picked on July 08 at $144.47
Change since picked: + 0.00
Earnings Date 07/28/08 (unconfirmed)
Average Daily Volume = 2.7 million

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Fording Candn.Trust - FDG - cls: 75.35 chg: -1.30 stop: 69.90

Company Description:
Fording Canadian Coal Trust is an open-ended mutual fund trust and one of the largest royalty trusts in Canada. (source: company press release or website)

Why We Like It:
The bullish trend in the coal stocks, including FDG, has clearly been broken. However, the sell-off has been so steep that they could see some very sharp bounces. Expect the bounce to fail but that could be in the $85-95 region. Our target is $84.00.

Suggested Options:
We are suggesting the August calls. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL AUG 75.00 FDG-HO open interest= 276 current ask $7.10
BUY CALL AUG 80.00 FDG-HP open interest= 321 current ask $5.00
BUY CALL AUG 85.00 FDG-HQ open interest= 445 current ask $3.30

Picked on July 08 at $ 75.35
Change since picked: + 0.00
Earnings Date 07/23/08 (confirmed)
Average Daily Volume = 2.4 million

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Mosaic - MOS - cls: 131.12 chg: +1.69 stop: 118.99

Company Description:
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. (source: company press release or website)

Why We Like It:
The profit-taking from its recent top to today's low was more than 26%. It's possible that MOS is done trading lower and ready for its next leg up. Traders jumped in to buy the dip near the bottom of its rising channel, rising 100-dma and the $120 region. Volume was above average on the bounce. This is an aggressive play because our stop loss is wider than we'd like under today's low. We're setting two targets. Our first target is $144.00. Our second target is $158.00. Just remember that we do not want to hold over the late July earnings report.

Suggested Options:
We are suggesting the August calls. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL AUG 130.00 MTJ-HF open interest= 230 current ask $13.20
BUY CALL AUG 140.00 MTJ-HH open interest= 498 current ask $ 8.80
BUY CALL AUG 150.00 MTJ-HJ open interest= 930 current ask $ 5.70

Picked on July 08 at $131.12
Change since picked: + 0.00
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume = 6.0 million

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Research In Motion - RIMM - cls: 122.04 chg: +6.38 stop: 114.75

Company Description:
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. (source: company press release or website)

Why We Like It:
RIMM has spent more than a week testing technical support at its rising 200-dma. Now that the market is bouncing we want to gamble on a rebound in RIMM. We're not expecting new highs just a bounce back toward congestion and its 50-dma. Right now our target is the $130.00 mark. More aggressive traders may want to aim higher around $140ish. Keep in mind that rival AAPL is probably going to garner a lot of press with its upcoming availability of the 3G iPhone, which could bring comparisons to RIMM's upcoming new products. This is an aggressive play due to our risk-reward ratio.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 120.00 RUL-HD open interest=3280 current ask $8.80
BUY CALL AUG 125.00 RUL-HE open interest=1625 current ask $6.35
BUY CALL AUG 130.00 RUL-HV open interest=2410 current ask $04035

Picked on July 08 at $122.04
Change since picked: + 0.00
Earnings Date 09/25/08 (unconfirmed)
Average Daily Volume = 17.7 million
 

New Puts

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New Strangles

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