- New Trades -

eBay Inc. - EBAY - close: 36.25

Company Info

Why We Like It:
We have had our eye on EBAY for a long time. I've mentioned it multiple times in my "radar screen" posts. The stock spent almost all of 2011 consolidating sideways in a very wide trading range. The 2012 breakout past key resistance in the $35 area is very bullish. The Point & Figure chart is also bullish and is forecasting at $46.00 target.

I am suggesting we launch bullish positions at the opening bell on Monday morning. Investors should be aware that EBAY could gap higher on Monday thanks to news out Friday night that Standard & Poor's is adding EBAY to the S&P 100 index soon.

I am suggesting a stop loss at $33.45. Our long-term target is $44.50.

- Suggested Positions -
Mar 12, 2012 - entry price on EBAY @ --.--, option @ --.--
symbol: EBAY1319A40 2013 JAN $40 call - current bid/ask $ 2.84/ 2.89

- or -

Mar 12, 2012 - entry price on EBAY @ --.--, option @ --.--
symbol: EBAY1418A40 2014 JAN $40 call - current bid/ask $ 5.15/ 5.35

Chart of EBAY:

Current Target: $44.50
Current Stop loss: 33.45
Play Entered on: 03/12/12
Originally listed in the New Plays 03/10/12


Tyson Foods, Inc. - TSN - close: 19.86

Company Info

Why We Like It:
TSN makes a wide variety of food items but they are best known for their meats. The stock saw a correction in January but shares found support near the 50% retracement of its Q4 2011 rally and support near its long-term moving averages (e.g. the 200-dma). Now TSN is rising out of this multi-week base it has built in the $18.50-19.50 zone.

I am suggesting we launch bullish positions at the opening bell on Monday with a stop loss at $18.50. The $20 and $21 levels are overhead resistance but I'm setting our long-term target at $24.50. FYI: The Point & Figure chart is bullish with a $31.50 target.

- Suggested Positions -
Mar 12, 2011 - entry price on TSN @ --.--, option @ -.--
symbol: TSN1319A20 2013 JAN $20 call - current bid/ask $ 1.85/ 1.95

- or -

Mar 12, 2011 - entry price on TSN @ --.--, option @ -.--
symbol: TSN1418A20 2014 JAN $20 call - current bid/ask $ 3.00/ 3.60

Chart of TSN:

Current Target: $24.50
Current Stop loss: 18.25
Play Entered on: 03/12/12
Originally listed in the New Plays 03/10/12