NEW BULLISH Plays

Genworth Financial - GNW - close: 9.09 change: +0.57

Stop Loss: 8.49
Target(s): 11.00
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 02, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 8.6 million
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of GNW were the best performers in the S&P 500 today with a +6.69% gain. There didn't seem to be one specific catalyst to account for the strength today but the option market is seeing a lot of activity. Option buyers are betting GNW is poised to rally with 7,700 March $9 calls and almost 4,500 March $10 calls purchased today. The April $10 calls were really popular with 26,656 purchased today. As of Friday's close there was only 333 open interest on the April $10 calls. Someone expects a move in GNW prior to April option expiration.

The stock does appear to be breaking out from a six-week consolidation phase. We would like to see a little more confirmation. I am suggesting a trigger to open bullish positions (the stock or options) if GNW hits $9.25. If triggered our target is $11.00. We'll use a stop loss at $8.49.

Trigger @ 9.25

Suggested Position: buy GNW stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Apr $10 call (GNW1320d10) current ask $0.34

Annotated chart:

WEEKLY chart: