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NEW DIRECTIONAL CALL PLAYS

Energizer Holdings - ENR - close: 49.60 change: +1.16 stop: 46.99

Why We Like It:
ENR has produced an impressive rebound off its November lows. The last several days has seen shares consolidate sideways under resistance at $50.00. This consolidation is narrowing and suggesting the next move will be a bullish breakout higher. The Point & Figure chart is already bullish with a $68.00 target.

We are suggesting readers buy calls at $50.05. If triggered we'll use a stop loss at $46.99, which is under price support at $47.00 and under the 10-dma. We have two targets. Our first target is $54.50. Our second target is $59.00.

Suggested Options:
We are suggesting the January or February calls. However, keep in mind that we do not want to hold over the late January earnings report.

BUY CALL JAN 45.00 ENR-AI open interest= 137 current ask $5.90
BUY CALL JAN 50.00 ENR-AU open interest= 368 current ask $2.70
currently $50s are the highest strike for January.

BUY CALL FEB 50.00 ENR-BU open interest=4743 current ask $4.70
BUY CALL FEB 55.00 ENR-BK open interest= 641 current ask $2.60

Annotated Chart:
ENR

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       798 thousand 


Lockheed Martin - LMT - close: 81.11 change: +1.89 stop: 77.45

Why We Like It:
LMT is showing relative strength again with a 2.3% gain on Friday. The stock has broken out past its 50-dma and the $80.00 mark. I am wary of the move on Friday due to holiday volume but the short-term trend is up and the defense sector has been out performing the broader market.

We are suggesting readers buy calls on a dip into the $80.00-79.00 zone with a stop loss at $77.45. If triggered our target is $84.90. More aggressive traders may want to aim higher. FYI: The P&F chart is bullish with a $90 target.

Suggested Options:
We are suggesting the January or February calls.

BUY CALL JAN 75.00 LMT-AO open interest= 522 current ask $7.40
BUY CALL JAN 80.00 LMT-AP open interest=1121 current ask $3.80
BUY CALL JAN 85.00 LMT-AQ open interest=1334 current ask $1.45

BUY CALL FEB 80.00 LMT-BP open interest=  21 current ask $6.10
BUY CALL FEB 85.00 LMT-BQ open interest=  10 current ask $3.60

Annotated Chart:
LMT

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       2.8 million  


NEW DIRECTIONAL PUT PLAYS

Franklin Resources - BEN - close: 59.64 change: -1.06 stop: 63.11

Why We Like It:
BEN, a.k.a. Franklin Templeton Investments, is in the asset management business and with investors spooked things could be challenge in 2009. The stock has produced a bearish double top near $66.00 and last week saw shares break their bullish trend of higher lows. Plus, BEn has broken down under round-number support at $60.00.

We are suggesting readers buy puts now. More conservative traders may want to wait for a little more confirmation with a low under $57.40. We have two targets. Our first target is $55.25. Our second target is the $50.50 mark since the $50.00 level could offer support.

Suggested Options:
We are suggesting the January or February puts but traders should plan to exit before the January earnings report.

BUY PUT JAN 65.00 BEN-MM open interest= 124 current ask $7.20
BUY PUT JAN 60.00 BEN-ML open interest= 641 current ask $4.10
BUY PUT JAN 55.00 BEN-MK open interest= 834 current ask $2.10

BUY PUT FEB 55.00 BEN-NK open interest=  3  current ask $4.60
BUY PUT FEB 50.00 BEN-NJ open interest= 10  current ask $2.95

Annotated Chart:
BEN

Picked on December 27 at $ 59.64
Change since picked:      + 0.00
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       1.4 million  


Equinix Inc. - EQIX - close: 52.30 change: +0.68 stop: 52.75

Why We Like It:
The rebound in EQIX, while impressive, is fading. The stock looks like it is forming another lower high inside its long-term bearish trend. Short-term technical indicators are rolling over. We don't want to open positions just yet. EQIX still has some support near $50.00.

Our suggested entry point to buy puts is $49.75. If triggered we have two targets. Our first target is $45.05. Our second target is $40.50. More aggressive traders may want to aim lower.

Suggested Options:
We are suggesting the January or February puts but traders should plan to exit before the February earnings report.

BUY PUT JAN 55.00 FQS-MK open interest= 451 current ask $4.90
BUY PUT JAN 50.00 FQS-MJ open interest= 665 current ask $2.20
BUY PUT JAN 45.00 FQS-MI open interest= 369 current ask $0.90 

BUY PUT FEB 50.00 FQS-NJ open interest= 10  current ask $4.90
BUY PUT FEB 45.00 FQS-NI open interest= 27  current ask $3.10

Annotated Chart:
EQIX

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           02/11/09 (unconfirmed)
Average Daily Volume =       990 thousand 


Google Inc. - GOOG - close: 300.36 change: -2.59 stop: 311.00

Why We Like It:
Let me start by saying any time we play GOOG it is considered an aggressive, higher-risk trade. The stock can see very big intraday swings and the options are always expensive. This play is even a little bit more risky because we can't really draw any conclusions from the last couple of days due to the holiday lack of volume. Yet the general trend is pretty evident. The stock is headed lower.

We are suggesting bearish positions now. More conservative traders could wait for a drop under $290.00 to initiate positions. We're going to play with what is a very tight stop for GOOG at $311. If you really want to tighten your risk then try a stop around $307. Our first target is $281.00. Our second target is $265. More aggressive traders could aim for $250. The Point & Figure chart points to $252.

Suggested Options:
We are suggesting the January or February puts but traders should plan to exit before the January earnings report. Please note that there are two different root symbols.

BUY PUT JAN 300 GGD-MT open interest=4543 current ask $14.40
BUY PUT JAN 290 GGD-MR open interest=2479 current ask $10.60
BUY PUT JAN 280 GGD-MP open interest=3942 current ask $ 7.60
BUY PUT JAN 270 GOU-MN open interest=4526 current ask $ 5.30

BUY PUT FEB 280 GGD-NP open interest= 418 current ask $17.90
BUY PUT FEB 260 GOU-NL open interest= 194 current ask $11.80

Annotated Chart:
GOOG

Picked on December 27 at $300.36
Change since picked:      + 0.00
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       5.4 million  


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