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NEW DIRECTIONAL CALL PLAYS

Intercontinental Exchange - ICE - close: 82.42 change: -2.85 stop: 75.95

Why We Like It:
Last Friday ICE broke out over significant resistance and from a three-week trading range after Goldman Sachs (GS) upgraded ICE to a "buy". Goldman isn't the only analyst growing more bullish on ICE and expectations are rising for the company's earnings. We want to buy calls on a dip.

I'm suggesting readers buy calls on a pull back into the $80.50-77.50 zone. ICE like many of the exchange stocks can see some volatile intraday moves so I'm listing our first stop loss at $75.95. If triggered at $80.50 our first target is $84.85. Our second target $89.75 and this time I'm listing a third target at $97.00. We do not want to hold over the early May earnings report.

Suggested Options:
I'm suggesting the May calls.

BUY CALL MAY 80.00 ICE-EP open interest= 697 current ask $9.50
BUY CALL MAY 85.00 ICE-EQ open interest=1621 current ask $6.90
BUY CALL MAY 90.00 ICE-ER open interest= 841 current ask $4.80

Annotated Chart:
ICE

Picked on    April xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           05/05/09 (unconfirmed)
Average Daily Volume =       2.4 million  
Listed on April 06, 2009         


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