NEW DIRECTIONAL CALL PLAYS

Bunge Ltd. - BG - close: 63.55 change: +3.43 stop: 57.49

Why We Like It:
BG operates three divisions; their agribusiness, fertilizer and food products. The stock has a long-term bullish trend of higher lows and shares just rallied from oversold levels near 54.00. Now the stock is breaking through multiple levels of resistance in the $60-62 zone with its 30 and 50-dma. I don't want to chase it here. The stock is up five days in a row. We want to buy calls on a dip at $61.00. More conservative traders can wait for a dip closer to $60.00. Our first target is $67.40. We don't want to hold over the July 23rd earnings report.

Suggested Options:
Wait for the dip to $61.00. Buy the August calls.

BUY CALL AUG 60.00 BGW-HL open interest=1140 current ask $6.10
BUY CALL AUG 65.00 BGW-HM open interest=4257 current ask $3.30
BUY CALL AUG 70.00 BGW-HN open interest= 224 current ask $1.55

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.5 million  
Listed on  July 15, 2009         


SPX Corp. - SPW - close: 51.72 change: +3.28 stop: 47.45

Why We Like It:
SPW has spent the last few months slowly consolidating sideways with a bullish trend of higher lows. Now it looks like shares might be breaking out higher. The P&F chart is bullish with a $66 target. We don't want to chase today's move. The plan is to buy calls on a dip in the $50.25-48.00 zone with a stop loss at $47.45. Our first target is $53.75. Our second target is $57.00 but we'll plan to exit ahead of the July 29th earnings report.

Suggested Options:
Use a trigger at $50.25. Buy the August calls.

BUY CALL AUG 50.00 SPW-HJ open interest= 313 current ask $3.90
BUY CALL AUG 55.00 SPW-HK open interest= 152 current ask $1.50

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       777 thousand 
Listed on  July 15, 2009