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NEW DIRECTIONAL CALL PLAYS

Jacobs Eng. - JEC - close: 41.32 change: -1.42 stop: 36.45

Why We Like It:
Shares of Jacobs Engineering Group are showing promise. The stock just spent two weeks consolidating sideways in sort of a bull-flag pattern. Thursday's breakout was the first entry point for bulls. I think the stock will pull back a bit before surging higher again and we'll use any market weakness as our advantage.

The plan is to buy calls on a dip in the $39.00-38.00 zone. We'll use a stop loss under the recent low. Our first target is $44.00. Our second target is $47.00. Please keep in mind that even though JEC looks poised to run if the wider market produces a prolonged or excessive sell-off I would expect JEC to hit our stop loss. It's not going to be immune to any market correction. FYI: The Point & Figure chart is bullish with a $63 target.

Suggested Options:
We are suggesting the May calls if triggered. More aggressive traders could use April calls, which have more volume and open interest. It is always up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL MAY 40.00 JEC-EZ open interest= 264 current ask $5.30
BUY CALL MAY 45.00 JEC-EI open interest= 575 current ask $2.95

Annotated Chart:
JEC

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/20/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on March 28, 2009         


NEW DIRECTIONAL PUT PLAYS

AthenaHealth Inc. - ATHN - close: 24.60 chg: -1.05 stop: 26.25

Why We Like It:
ATHN is a business services business for doctors. The stock is breaking down from a three-week consolidation pattern and looks poised to begin a new leg lower. The Point & Figure chart has turned bearish with an $18.00 target. If ATHN can't rally with the market flying higher, how well is the stock going to do when the market corrects?

I am suggesting put positions now with a stop loss at $26.25. Our first target is $20.50.

Suggested Options:
I am suggesting the April or May puts.

BUY PUT APR 25.00 QJN-PE open interest= 377 current ask $2.00
BUY PUT APR 22.50 QJN-PX open interest=2689 current ask $1.00
BUY PUT APR 20.00 QJN-PD open interest=1179 current ask $0.45

BUY PUT MAY 25.00 QJN-QE open interest= 80  current ask $3.00
BUY PUT MAY 22.50 QJN-QX open interest= 60  current ask $1.90
BUY PUT MAY 20.00 QJN-QD open interest= 20  current ask $1.15

Annotated Chart:
ATHN

Picked on    March 28 at $ 24.60
Change since picked:      + 0.00
Earnings Date           05/06/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on March 28, 2009         


Bunge Ltd - BG - close: 59.10 change: -0.23 stop: 61.05

Why We Like It:
I am actually bullish on BG and the stock is currently on the OptionInvestor newsletter as a call candidate. The challenge is that BG is very overbought and way overdue for a significant correction. The plan for our call play is to buy a dip at $52.00.

Well, instead of just watching and waiting for BG to decline to $52.00, let's try and catch the move with an aggressive put play. I have to label it aggressive because even though the rally is long in the tooth and momentum indicators are waning, BG continues to show relative strength.

I am suggesting put positions now with a stop loss at $61.05. I think our biggest risk might be two more days of window dressing before the quarter ends. Our short-term bearish target to exit is $53.00.

Suggested Options:
This should be a very short-term play. My time frame is less than two weeks.

BUY PUT APR 60.00 BGW-PL open interest= 889 current ask $3.80
BUY PUT APR 55.00 BGW-PK open interest=3329 current ask $1.75

Annotated Chart:
BG

Picked on    March 28 at $ 59.10
Change since picked:      + 0.00
Earnings Date           04/23/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on March 28, 2009         


CAL-MAINE Foods - CALM - close: 23.00 change: -0.71 stop: 24.15

Why We Like It:
After three weeks of gains the oversold bounce in CALM has run out of steam at resistance. The stock has found resistance near $24.00 and its simple 50-dma. This looks like a great spot to speculate on a correction. The P&F chart is very bearish with a $4.00 target.

I am suggesting put positions now with a stop above $24.00. Our first target is $20.50. Our second target is 18.50 but if you're aiming this low consider the May options instead.

Suggested Options:
We are suggesting the April or May puts.

BUY PUT APR 25.00 QKM-PE open interest= 107 current ask $3.20
BUY PUT APR 22.50 QKM-PX open interest= 642 current ask $1.80
BUY PUT APR 20.00 QKM-PD open interest= 321 current ask $0.85

BUY PUT APR 20.00 QKM-QD open interest= 149 current ask $1.40

Annotated Chart:
CALM

Picked on    March 28 at $ 23.00
Change since picked:      + 0.00
Earnings Date           03/30/09 (unconfirmed)
Average Daily Volume =       242 thousand 
Listed on March 28, 2009         


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