- New Trades -


Kellogg Co. - K - close: 67.32

Comments:
07/21/13: Kellogg has been on our watch list. We've been waiting for shares to rally to new highs and close above $67.00. The stock finally met that entry point requirement on Friday. Our trade will open on Monday morning. We're starting with a stop loss at $63.75 so it's just below what should be technical support at the 100-dma.

Keep in mind that K is due to report earnings on August 1st. More conservative traders may want to wait until after we see how the market interprets K's earnings results before initiating new positions even if K meets our entry requirement.

Please note that K does not move very fast. We will definitely need some patience with this trade.

BUY the 2015 Jan $75 call (K1517a75) current ask $2.15

07/22/13 trade will open.
07/19/13 K closed above $67.00, meeting our entry point requirement

Chart of K:

Current Target:$ 74.75
Current Stop loss: 63.75
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/16/13


Union Pacific Corp. - UNP - close: 163.36

Comments:
07/21/13: UNP is another watch list candidate that met our entry point requirement on Friday. The transportation stocks have been performing well and the Dow Jones transportation average just rallied to a new all-time closing high. Shares of UNP are helping lead the way with their own rally to a record high.

Our plan was to wait for shares to close above $162.00. The stock has been stuck under this resistance level for several days but finally broke out on Friday. Our trade will open on Monday morning. We will use an initial stop loss at $153.00 but that might actually be too tight. More aggressive traders may want to put their stop below the $150.00 mark.

Earlier Comments:
Our long-term target is $185.00 for the 2014 calls and $200 for the 2015 calls.

BUY the 2014 Jan $180 call (UNP1418a180) current ask $2.96

- or -

BUY the 2015 Jan $200 call (UNP1517a200) current ask $4.75

07/22/13 trade will open.
07/19/13 UNP closed above our trigger
07/14/13 adjust entry trigger to $162.00, adjust stop loss to $153.00

Chart of UNP:

Current Target:
Exit 2014 calls when UNP hits $185.00, 2015 calls @ $200
Current Stop loss: 153.00
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/08/13