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NEW DIRECTIONAL CALL PLAYS

Mastercard Inc. - MA - close: 164.53 change: +1.65 stop: 159.00

Why We Like It:
The sideways consolidation in shares of MA is butting up against resistance in the $165.00-170.00 zone. If this market can keep climbing then odds are good MA will see a significant bullish breakout. Very aggressive traders might want to go ahead and jump in right now with a stop loss under today's low (159.81).

I am suggesting that readers wait for a breakout. We'll use a trigger to buy calls at $171.00. If triggered our first target is $184.00. Our second target is $197.00. There is potential resistance at the 200-dma (currently around 185) so expect a pull back on the first test of the 200-dma. FYI: The Point & Figure chart is bullish with a $202 target.

Suggested Options:
I am suggesting the April or May calls. April calls expire in less than four weeks.

BUY CALL APR 170 MAL-DN open interest=10002 current ask $4.80
BUY CALL APR 180 MAL-DP open interest= 2871 current ask $1.70
BUY CALL APR 190 MAL-DR open interest=  691 current ask $0.50

BUY CALL MAY 180 MAL-EP open interest= 1694 current ask $6.60
BUY CALL MAY 190 MAL-ER open interest= 1949 current ask $3.80
BUY CALL MAY 200 MAL-ET open interest=  417 current ask $2.05

Annotated Chart:
Mastercard

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on March 25, 2009         


Transocean - RIG - close: 64.55 change: +0.89 stop: 59.95

Why We Like It:
The OSX oil services index is nearing resistance and I think RIG could actually lead the sector higher. Shares of RIG have already burst through its resistance in the $60-62 zone. Now after a week of consolidating above resistance at $60 and its 100-dma the stock looks ready to run higher, especially after today's sharp afternoon bounce.

I am suggesting call positions now with a stop loss under today's low. Our first target is $69.50. Our second target is $74.00. The P&F chart is bullish with an $82.00 target. My time frame on the first target is less than two weeks.

Suggested Options:
I am suggesting the April calls but more conservative traders might want to use longer-dated calls since Aprils expire in less than four weeks.

BUY CALL APR 60.00 RKJ-DL open interest=4233 current ask $6.30
BUY CALL APR 65.00 RKJ-DM open interest=8262 current ask $3.20
BUY CALL APR 70.00 RIG-DY open interest=4203 current ask $1.30

Annotated Chart:
Transocean

Picked on    March 25 at $ 64.55
Change since picked:      + 0.00
Earnings Date           05/07/09 (unconfirmed)
Average Daily Volume =       9.0 million  
Listed on March 25, 2009         


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