NEW BULLISH Plays

Citigroup Inc. - C - close: 4.70 change: +0.11

Stop Loss: 4.49
Target(s): 5.00, 5.35
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 weeks
New Positions: Yes

Company Description

Why We Like It:
It seems that everyone wants Citigroup now that the U.S. government has dumped their stake in the company. We recently closed our bullish position on the meteoric early December rally. Now traders are buying the dip near previous resistance. This bounce looks like a new entry point to consider bullish positions although I do consider this an aggressive, higher-risk entry point and trade.

I am suggesting bullish positions now but readers could buy the stock anywhere in the $4.75-4.55 zone. We're starting with a stop loss at $4.49. Our first target is $5.00. Our second, longer-term target is $5.35. I am suggesting that readers keep their position size small to limit their risk.

Open (small) Bullish Positions Now.

Suggested Position: Buy Citigroup stock @ current levels

- or -

Buy the 2011 March $5.00 calls (C1119C5) current ask $0.20

Annotated chart:

Entry on December 20 at $xx.xx
Earnings Date 01/18/11 (confirmed)
Average Daily Volume: 688 million
Listed on December 18th, 2010


Check Point Software Technologies - CHKP - close: 45.67 change: +0.29

Stop Loss: 43.95
Target(s): 47.25, 49.75
Current Option Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
CHKP is a big cap technology company that is breaking out to new eight-year highs. Shares spent most of November consolidating its gains from October. Now the stock is beginning to rally after a two-week consolidation in December. The stock has short-term support near $44.00. Aggressive traders could launch new positions right now. We might get a slightly better entry point if we wait. I am suggesting a trigger to buy the stock or call options at $45.10. Our first target is $47.25. Our second, longer-term target is $49.75. This could take several weeks. Investors will have to decide whether or not they are willing to hold over CHKP's earnings in late January.

Buy the dip trigger @ 45.10

Suggested Position: Buy CHKP stock $45.10

- or -

Buy the 2011 April $45.00 calls (CHKP1116D45) current ask $2.95

Annotated chart:

Entry on December xx at $xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume: 1.4 million
Listed on December 18th, 2010


FLIR Systems Inc. - FLIR - close: 28.45 change: +0.41

Stop Loss: 27.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The defense sector indices appear to be poised for a bullish breakout from their two-week consolidation. Meanwhile FLIR is showing relative strength with a bounce from technical support at its 50-dma. Shares of FLIR also appear to be breaking their long-term trendline of lower highs. However, I would like to see additional confirmation of this new trend higher. That's why I'm suggesting we wait for FLIR to trade above short-term resistance at $29.00. We'll use a trigger at $29.10 to open bullish positions. FLIR doesn't move super fast but our targets are $30.90 and $33.00.

Breakout Trigger @ $29.10

Suggested Position: Buy FLIR stock @ $29.10

- or -

Buy the 2011 April $30.00 calls (FLIR1116D30) current ask $1.35

Annotated chart:

Entry on December xx at $xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on December 18th, 2010