NEW DIRECTIONAL CALL PLAYS

EOG Res. Inc. - EOG - close: 75.79 change: +2.23 stop: 70.80

Why We Like It:
The oil sector produced a very nice rebound off its Monday lows last week. I believe the trend is still up but we want to buy a dip. I'm suggesting we buy calls at $74.00 on EOG. Our first target is $79.50. Our second target is $88.00. The daily chart is building an inverse H&S pattern that is forecasting a rally toward $100.

Suggested Options:
I am suggesting the September or October calls.

BUY CALL SEP 75.00 EOG-IO open interest=2311 current ask $3.50
BUY CALL SEP 80.00 EOG-IP open interest=1351 current ask $1.35

BUY CALL OCT 75.00 EOG-JO open interest=2024 current ask $4.90
BUY CALL OCT 80.00 EOG-JP open interest=2626 current ask $2.65
BUY CALL OCT 85.00 EOG-JQ open interest=3033 current ask $1.25

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 74.00
Change since picked:      + 0.00
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       2.4 million  
Listed on August 22, 2009         


Grainger W.W. - GWW - close: 89.82 change: +1.44 stop: 84.50

Why We Like It:
Traders bought the dip last week right where they were supposed to near support at $85.00 and its 50-dma. The trend is up and GWW looks poised to rally towards $95 and beyond. I'm suggesting readers buy calls on a dip at $88.00. Our first target is $93.50.

Suggested Options:
I am suggesting the September calls.

BUY CALL SEP 85.00 GWW-IQ open interest= 408 current ask $5.80
BUY CALL SEP 90.00 GWW-IR open interest= 855 current ask $2.40

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 88.00
Change since picked:      + 0.00
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


Mettler Toledo - MTD - close: 87.52 change: +1.29 stop: 83.95

Why We Like It:
Shares of MTD are breaking out from a five-week consolidation. Considering the coiling (tightening trading range) over the last few weeks I suspect MTD can breakout past resistance near $90.00. The plan is to buy calls on a dip into the $86.50-85.00 zone. If triggered our first target is $93.50. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.

Suggested Options:
We want to trade the September calls

BUY CALL SEP 90.00 MTD-IR open interest=142  current ask $2.00
BUY CALL SEP 95.00 MTD-IS open interest= 20  current ask .45

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 86.50
Change since picked:      + 0.00
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009