Editor's Note:

Our new play candidates are making the jump from our watch list. ADM hit our entry point requirements on Friday at the closing bell. INTC is breaking out instead of correcting lower. We are graduating them to active trades tonight.


- New Trades -


Archer-Daniels-Midland Company - ADM - close: 31.35

Comments:
02/18/12 update: We have had ADM on our watch list with plans to buy calls if shares can close over $31.25. The stock has been flirting with a breakout past this level the last few days and finally closed above our trigger on Friday. This trade should open on Tuesday morning (since the market is closed on Monday).

After months of consolidating under resistance in the $30.00-30.50 zone ADM looks poised to run. The P&F chart is bullish with a $40 target. We are aiming for $37.75. We will start this play with a stop loss at $28.40.

NOTE: The U.S. market looks overbought and will correct eventually. We want to keep our new position size small to limit our exposure here. Start with half your normal position size or less.

- Suggested Positions -
Feb 21, 2011 - entry price on ADM @ --.--, option @ -.--
symbol: ADM1319A35 2013 JAN $35 call - current bid/ask $ 1.74/ 1.78

02/18/12 start with small positions to limit our exposure.
02/17/12 ADM meets our entry point requirements with a close over $31.25. Open positions the next day (Feb. 21st).
02/11/12 adjust entry trigger to wait for close over $31.25
FYI: 2014 calls are also available.

Chart of ADM:

Current Target: $37.75
Current Stop loss: 28.40
Play Entered on: 02/21/12
Originally listed on the Watch List: 01/28/12


Intel Corp. - INTC - close: 27.37

Comments:
02/18/12 update: Shares of INTC have been consolidating sideways under resistance near $27.00 for over three weeks. We had this stock on our watch list with a buy-the-dip trigger in hopes of catching it during a market sell-off. Yet now INTC has broken out past resistance. We don't want to wait for the pull back that may not show up.

I am suggesting we open small bullish positions at the opening bell on Tuesday morning with a stop loss at $24.75. Our long-term target is $34.00. The P&F chart is bullish with a $31.50 target. We want to keep our initial position size small to limit our risk (start with half your normal trade size or smaller).

- Suggested Positions -
Feb 21, 2011 - entry price on INTC @ --.--, option @ -.--
symbol: INTC1319A30 2013 JAN $30 call - current bid/ask $ 1.29/ 1.32

- or -

Feb 21, 2011 - entry price on INTC @ --.--, option @ -.--
symbol: INTC1418a30 2014 JAN $30 call - current bid/ask $ 2.22/ 2.28

02/18/12 start with small positions to limit our exposure.

Chart of INTC:

Current Target: $34.00
Current Stop loss: 24.75
Play Entered on: 02/21/12

Originally listed on the Watch List: 02/11/12