NEW DIRECTIONAL CALL PLAYS

Mobile Telesys - MBT - close: 49.07 change: +0.76 stop: 46.80

Why We Like It:
MBT is a European telecom provider. The stock has been consolidating under resistance at $50.00 for weeks. Shares look like they're coiling for a bullish breakout. I'm suggesting a trigger to buy calls at $50.15. If triggered our first target is $54.50. Our second target is $59.00. We do not want to hold positions over the early November earnings report.

Suggested Options:
I'm suggesting the November or December calls. My preference is the November $50 strike.

BUY CALL NOV 50.00 MBT-KJ open interest=309  current ask $3.40

Annotated Chart:

Picked on   October xx at $ xx.xx <-- TRIGGER @ 50.15
Change since picked:       + 0.00
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   October 10, 2009         


Precision Cast Parts - PCP - cls: 103.32 change: +1.18 stop: 99.90

Why We Like It:
This is a short-term momentum play. PCP has rallied back to resistance near $103.75-104.00. A breakout from here could spark another short-covering rally. I'm suggesting a trigger to buy calls at $104.05. If triggered our target is $109.90. More aggressive traders may want to aim higher but PCP has earnings on October 20th and we don't want to hold over the report.

Suggested Options:
I'm suggesting the November calls. My preference is the $105 strike.

BUY CALL NOV 105 PCP-KA open interest= 373 current ask $4.30

Annotated Chart:

Picked on   October xx at $ xx.xx <-- TRIGGER @ 104.05
Change since picked:       + 0.00
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        1.0 million  
Listed on   October 10, 2009         


Whirlpool Corp. - WHR - close: 70.50 change: +0.89 stop: 65.90

Why We Like It:
WHR has recovered after a three-week correction. The trend of higher lows is back in place. Readers can buy calls on this bounce. More conservative traders can wait for a new move over $71.00 or $71.50 if you prefer a little more confirmation. I'm suggesting positions now. Our first target to take profits is at $73.90. Our second target is $78.50. We will plan to exit ahead of the October 23rd earnings report.

Suggested Options:
I'm suggesting the November calls. My preference is the $70 strike.

BUY CALL NOV 70.00 WHR-KN open interest=2302 current ask $5.00

Annotated Chart:

Picked on   October 10 at $ 70.50
Change since picked:       + 0.00
Earnings Date            10/23/09 (confirmed)
Average Daily Volume =        1.5 million  
Listed on   October 10, 2009