Editor's Note:

I am not sure the volatility could increase any more after last week's bout of triple digit ranges. With the majority of earnings over there is little in the way of stock news to keep the markets moving higher. What earnings we did have last week resulted in some severe disappointments and that is always bad for overall market sentiment.

The national ISM on Monday has already been previewed with the NY and Chicago versions last week. That suggests Monday's economic events probably won't rock the market.

The Non-Farm Payrolls on Friday could be a different story. Rising first time jobless claims and the three blizzards point to a loss of jobs for the month. New estimates are for a loss of 75,000 jobs rather than a small gain. This pessimism should be priced into the market by Friday and render the actual announcement less meaningful in terms of market moving potential.

James is traveling this week and will be back in mid March.


NEW DIRECTIONAL CALL PLAYS

MYGN - Myriad Genetics - $23.00

Company Description:

Myriad Genetics, Inc. is a healthcare company focused on the development and marketing of molecular diagnostic products. The Company is focused on providing physicians with information that guide the healthcare management of their patients to prevent disease, delay the onset of disease, or catch the disease at an earlier stage when it is treatable. As of June 30, 2009, the Company launched seven commercial molecular diagnostic products, including four predictive medicine and three personalized medicine products.

Why We Like It:
Myriad posted profits that increased +67% in early February. The beat the street by 2-cents, saw their stock shoot up to nearly $26 and then implode to trade under $21 two weeks later. The selling appears to be over and the stock is ramping back up to retest that $26 level. Myriad will host an investor day in New York on Wednesday and unveil several new products.

Exit Target = $25.00

Suggested Options:
I am looking for a quick retracement to $25 or higher and I am recommending the MAY $25 calls.

BUY CALL MAY 25.00 (MYGN 10E2500) open interest= 1,170 current ask $1.15


Annotated Chart:

Entry  on  March 1st at $ 23.01 
Change since picked:       + 0.00
Earnings Date            02/3/10 
Average Daily Volume =  1.62   million  
Listed on  February 28, 2010         


BUCY - Bucyrus International - $62.56

Company Description:

Bucyrus International, Inc. designs, manufactures mining equipment for the extraction of coal, copper, oil sands, iron ore and other minerals in mining centers throughout the world. In addition to the manufacture of original equipment, the Company also provides the aftermarket replacement parts and service for equipment. The Company operates in two business segments: surface mining and underground mining.

Why We Like It:
On their earnings conference call the company said they were seeing a strong pickup in demand and improving. Earnings were up +21% to $1.07 and beat the consensus of 92-cents. Earnings were on the 18th and there was the obligatory post earnings decline but investors quickly bought the dip.

Exit Target = $68.00

Suggested Options:
I am looking for a return to the January highs and I am recommending the April $65 calls.

BUY CALL APR 65.00 (BUCY 10D6500) open interest= 2,795 current ask $3.30 

Annotated Chart:

Entry  on  March 1st at $ 62.56 
Change since picked:       + 0.00
Earnings Date            02/18/10 
Average Daily Volume =  1.75   million  
Listed on  February 28, 2010         


NEW DIRECTIONAL PUT PLAYS

NONE