NEW BULLISH Plays

Walt Disney Co. - DIS - close: 37.70 change: -0.25

Stop Loss: 36.75
Target(s): 39.90, 42.50
Current Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Shares of media giant DIS are inching closer and closer to a breakout over key resistance at the $38.00 level. A move over $38 would lift DIS to new nine-year highs and set up a chance for shares to rally toward their all-time highs near $44. Nimble traders could try and buy a dip near $37.00. I am suggesting we wait for a breakout over resistance with a trigger to launch positions at $38.25. We'll use a stop loss at $36.75. Our targets are $39.90 and $42.50. Our time frame is two or three months.

Trigger @ 38.25

- Suggested Positions -

Buy DIS stock @ 38.25

- or -

Buy the 2011 February $40.00 calls (DIS1119B40)

- or -

Buy the 2011 April $40.00 calls (DIS1116D40)

Annotated chart:

Entry on December xx at $xx.xx
Earnings Date 02/08/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on December 25th, 2010


Weyerhaeuser Co. - WY - close: 18.56 change: +0.12

Stop Loss: 16.99
Target(s): 19.95
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Opinions vary greatly over the fate of the real estate market in 2011. Yet investors are generally optimistic about the overall economy, which would mean construction and demand for lumber should grow. That should be bullish for the likes of WY. The stock recently broke out over resistance at $18.00. I'm suggesting we wait for a dip to $18.10 to launch bullish positions. We'll use a stop at $16.99 but more conservative traders might consider a stop loss closer to $17.50 instead. Our first target is $19.95.

Trigger @ 18.10

Suggested Position: Buy WY stock @ $18.10

- or -

Buy the 2011 April $20 calls (WY1116D20)

Annotated chart:

Entry on December xx at $xx.xx
Earnings Date 02/04/11 (unconfirmed)
Average Daily Volume: 4.7 million
Listed on December 25th, 2010