We found a couple of bullish candidates that didn't require waiting for a pull back.


NEW DIRECTIONAL CALL PLAYS

NYSE Euronext - NYX - close: 29.82 change: +0.40 stop: 27.75

Why We Like It:
The NYX recently broke out over key resistance a few days ago. Now traders are quickly buying the dip. While I would prefer to buy calls near $28.00 I don't think we can wait. I'm suggesting new positions right here with a stop loss at $27.75. Our first target is $31.95. Our second target is $34.50.

Suggested Options:
I am suggesting the October or November calls. I prefer the November $30s.

BUY CALL OCT 30.00 NZV-JD open interest=3528 current ask $1.04

BUY CALL NOV 30.00 NZV-KD open interest=  46 current ask $1.83

Annotated Chart:

Picked on September xx at $ xx.xx
Change since picked:       + 0.00
Earnings Date            10/30/09 (unconfirmed)
Average Daily Volume =        3.0 million  
Listed on September 22, 2009         


Wells Fargo - WFC - close: 29.39 change: +1.10 stop: 27.25

Why We Like It:
Financials were leading the market higher on Tuesday and WFC displayed relative strength with a 3.8% gain. This bounce after a three-day slide looks like a new bullish entry point. I'm suggesting call positions now. Our first target is $32.50. Our second target is $34.75 but we may not have time. The plan is to exit ahead of the mid October earnings report.

Suggested Options:
Earnings are expected around October 14th and October options expire after the 16th so I'm suggesting October calls. My preference is the $30 strike.

BUY CALL OCT 30.00 FHU-JD open interest=64613 current ask $1.05

Annotated Chart:

Picked on September 22 at $ 29.39
Change since picked:       + 0.00
Earnings Date            10/14/09 (unconfirmed)
Average Daily Volume =         42 million  
Listed on September 22, 2009