NEW DIRECTIONAL CALL PLAYS

Alcon Inc. - ACL - close: 114.06 change: +0.63 stop: 109.90

Why We Like It:
This medical equipment and supplies maker is looking bullish. The stock is coiling more tightly inside its trading range and building up steam for a breakout over resistance at $115.00. The high on June 9th was $115.76. More conservative traders may want to wait for ACL to clear that level. I am suggesting readers buy calls at $115.25. Our first target is $119.90. Our second target is $124.50.

Suggested Options:
I am suggesting the July or August calls. It is always up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL JUL 115 ACL-GC open interest=1034 current ask $3.10
BUY CALL JUL 120 ACL-GD open interest=1668 current ask $1.20

BUY CALL AUG 120 ACL-HD open interest=1402 current ask $3.80
BUY CALL AUG 125 ACL-HE open interest= 216 current ask $2.15

Annotated Chart:

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       688 thousand 
Listed on  June 24, 2009         


Quest Diagnostic - DGX - close: 54.28 chg: +1.36 stop: 51.95

Why We Like It:
Shares of DGX look ready to run. The stock spent about two months consolidating sideways and it's just now starting to breakout. I'm suggesting readers buy calls now or on dips near $53.00. Our first target to take profits is $58.25. We'll set our second target at $59.90. More aggressive traders may want to aim higher. The Point & Figure chart has a new triple-top breakout buy signal with a $75 target. We do not want to hold over the late July earnings report.

Suggested Options:
I am suggesting the July or August calls. It is always up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL JUL 50.00 DGX-GJ open interest= 132 current ask $4.50
BUY CALL JUL 55.00 DGX-GK open interest= 831 current ask $1.00
BUY CALL JUL 60.00 DGX-GL open interest= 368 current ask .10

BUY CALL AUG 55.00 DGX-HK open interest=1132 current ask $2.15
BUY CALL AUG 60.00 DGX-HL open interest= 887 current ask .60

Annotated Chart:

Picked on     June 24 at $ 54.28
Change since picked:      + 0.00
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 24, 2009