Fiserv, Inc. - FISV - close: 62.34

Why We Like It:
I am taking a more aggressive stance on FISV and promoting it from the watch list to the portfolio. The combination of the market's resiliency and FISV's up trend offers an opportunity to buy calls on this bounce. The stock spiked lower on its lackluster earnings results but traders bought the dip near $60 and its rising 50-dma (bottom of the rising channel). While FISV is an information technology company a lot of its customers are in the financial sector so keep an eye on the banking indices, which could influence this stock.

I am suggesting bullish positions now, on the bounce, but we want to keep our position size small. This is an aggressive entry point for us and FISV does not have LEAPS. The best we can do are the September calls. There is some short-term resistance near $63.00-63.50 but our long-term target is $74.75. We'll start the trade with a stop loss at $57.50 but more conservative traders may want to use a tighter stop. FYI: The Point & Figure chart for FISV is very bullish and is forecasting a $100 (long-term) target.

- Suggested Positions -
Feb 14, 2011 - entry price on FISV @ xx.xx, option @ x.xx
symbol: FISV1117I65 2011 SEP $65 call - current bid/ask $ 2.85/ 3.20

Daily Chart of FISV:

Weekly Chart of FISV:

Current Target: $74.75
Current Stop loss: 57.50
Play Entered on: 02/14/11
Originally listed on the Watch List: 01/29/11
Originally listed in the New Plays 02/12/11