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New Plays

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NEW DIRECTIONAL CALL PLAYS

Boeing - BA - close: 30.10 change: +0.71 stop: 28.99

Why We Like It:
This is another very aggressive call play. BA was in freefall for most of February but it looks like sellers were exhausted in March. While the S&P 500 and the DJIA continued to hit new lows BA consolidated sideways. This is a good spot to roll the dice on an oversold bounce.

I'm suggesting call positions now with a stop loss at $28.99. More conservative traders could wait for a rise over $30.75 or $31.00 to initiate positions. Our first target is $35.75. My time frame is three to four weeks but probably sooner.

Suggested Options:
I am suggesting the April calls. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL APR 30.00 BA-DW open interest= 927 current ask $2.40
BUY CALL APR 35.00 BA-DY open interest=2018 current ask $0.65

Annotated Chart:
BA

Picked on    March 07 at $ 30.10
Change since picked:      + 0.00
Earnings Date           04/23/09 (unconfirmed)
Average Daily Volume =       8.8 million  


Google Inc. - GOOG - close: 308.57 change: +2.93 stop: 294.00

Why We Like It:
GOOG is another very aggressive call play, especially in this market. Traders have been selling the rallies for weeks but this time GOOG is bouncing from a significant trendline and from very oversold levels. Buying calls on GOOG's Friday rebound gives us a chance to limit our stop loss to under 5%. This is a volatile stock and with the VIX near 50 options are not cheap. Only nimble and aggressive traders should consider it.

Buy calls now on a dip(or bounce) near $300.00 with a stop loss at $294.00. Our target is $329.00. My time frame is about two weeks.

Suggested Options:
I am suggesting the April calls. More aggressive traders might consider March calls but March options expire in two weeks.

BUY CALL APR 310 GGD-DB open interest= 195 current ask $23.30
BUY CALL APR 320 GGD-DD open interest= 266 current ask $18.60
BUY CALL APR 330 GGD-DF open interest= 477 current ask $14.50

Annotated Chart:
GOOG

Picked on    March 07 at $308.57
Change since picked:      + 0.00
Earnings Date           03/27/09 (unconfirmed)
Average Daily Volume =       5.9 million  


PNC Financial Serv. - PNC - cls: 18.51 change: -1.49 stop: 16.15

Why We Like It:
This is another grab the "falling knife" kind of play. It's a risky bet that PNC has hit a short-term bottom. Why would I be willing to bet on a bounce from here? First of all volume was huge (2x normal) on the bounce off its lows. Secondly, PNC is bouncing from a trendline of lower lows like it has done in the past. Shares are very oversold and after going straight down for seven days it's time for a bounce. I think one of our biggest risks is probably having PNC gap open higher on Monday and impact our entry point.

Use a stop under Friday's low. Our first target is $22.40. Our second target is $24.50. My time frame is two to three weeks.

Suggested Options:
I am suggesting the April and March calls but March options are for aggressive traders only since March options expire in two weeks. *Note: these options are pretty pricey but that's to be expected given PNC's huge volatility lately.

BUY CALL MAR 17.50 PNC-CT open interest=  57 current ask $3.40
BUY CALL MAR 20.00 PNC-CD open interest= 816 current ask $2.15

BUY CALL APR 20.00 PNC-DD open interest= 219 current ask $3.90
BUY CALL APR 22.50 PNC-DS open interest= 800 current ask $2.90

Annotated Chart:
PNC

Picked on    March 07 at $ 18.51
Change since picked:      + 0.00
Earnings Date           04/16/09 (unconfirmed)
Average Daily Volume =        12 million  


NEW DIRECTIONAL PUT PLAYS

J.C.Penney - JCP - close: 14.22 change: -0.16 stop: 15.51

Why We Like It:
Believe it or not JCP's recent February same-store sales numbers were better than expected with an 8.8% decline in sales. Estimates were for a drop of -10 to -12% in sales The stock is suffering and I think it's only going to get worse. Currently JCP has fallen toward support at $14.00. Friday saw a dip to $13.71 before the afternoon short covering showed up. I'm suggesting readers use a trigger to buy puts at $13.65. If triggered our target is $10.15. The Point & Figure chart is bearish with a $9.50 target. FYI: My time frame is about six weeks.

Suggested Options:
We are suggesting a trigger at $13.65 and the April puts.

BUY PUT APR 15.00 JCP-PU open interest=1291 current ask $2.05
BUY PUT APR 12.50 JCP-PX open interest=1026 current ask $0.85
BUY PUT APR 10.00 JCP-PB open interest= 126 current ask $0.30

Annotated Chart:
JCP

Picked on    March xx at $ xx.xx <-- see TRIGGER (listed 3/07/09)
Change since picked:      + 0.00
Earnings Date           05/15/09 (unconfirmed)
Average Daily Volume =       7.3 million  


Tyson Foods Inc. - TSN - close: 7.98 change: +0.39 stop: 8.10

Why We Like It:
TSN's bounce from its November lows was broken back in February. Now after a two-week consolidation pattern it looks like TSN is ready to resume the downtrend. Shares bounced near $7.50 in the last few weeks. I'm suggesting readers use a trigger at $7.45 to buy puts. Our first target is $6.15. Our second target is $5.25. My time frame is four to six weeks.

Suggested Options:
I am suggesting the April puts.

BUY PUT APR 7.50 TSN-PU open interest=2944 current ask $0.60
BUY PUT APR 5.00 TSN-PA open interest=1932 current ask $0.15

Annotated Chart:
TSN

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/28/09 (unconfirmed)
Average Daily Volume =       5.6 million  


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