NEW DIRECTIONAL CALL PLAYS

Allegheny Tech. - ATI - close: 30.87 change: +2.38 stop: 27.95

Why We Like It:
Positive news from Boeing (BA) on its Dreamliner schedule gave investors reason to buy ATI. Shares of ATI soared 8.3% and broke out over round-number resistance at $30.00 and came close to breaking out over its 50-dma. The move appears to complete a multi-week consolidation.

I am suggesting readers buy calls on a dip at $30.25. We'll use a stop loss at $27.95. If triggered our first target is $34.50. Our second target is $39.00. Time frame on the first target is only two or three weeks. The $39 target could take several weeks.

Suggested Options:
I am suggesting the September or October call options depending on your time frame. 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 SEP 30.00 AAS-IF open interest=5200 current ask $2.10
BUY CALL SEP 32.00 AAS-IO open interest=3051 current ask $1.15
BUY CALL SEP 35.00 AAS-IG open interest=1358 current ask .40

BUY CALL OCT 30.00 AAS-JF open interest=3473 current ask $3.10
BUY CALL OCT 32.00 AAS-JO open interest= 843 current ask $2.05
BUY CALL OCT 35.00 AAS-JG open interest=2031 current ask $1.15

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 30.25
Change since picked:      + 0.00
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


PPG Inds. Inc. - PPG - close: 55.19 change: +1.45 stop: 52.95

Why We Like It:
PPG displayed relative strength on Thursday and looks ready to begin its next leg higher. I'm suggesting a trigger to buy calls on PPG at $55.65, which would be a bullish breakout over short-term resistance at $55.50. We'll use a tight stop under today's low. Our first target is $59.80.

Suggested Options:
This is a short-term two or three week play. I'm suggesting the September calls.

BUY CALL SEP 55.00 PPG-IK open interest=1509 current ask $1.65
BUY CALL SEP 60.00 PPG-IL open interest= 145 current ask .20

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 55.65
Change since picked:      + 0.00
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009