NEW DIRECTIONAL CALL PLAYS

Deere & Co - DE - close: 48.48 change: +1.32 stop: 46.85

Why We Like It:
If this market rally has any legs and the S&P 500 breaks out over resistance at 1100 then odds are good DE will break through resistance at $50.00. The stock has been building a long-term base and could see a sustained rally higher. I'm suggesting a trigger to buy calls at $50.25. If triggered our first target is $54.90. Our second target is $59.00. Keep in mind that we'll plan to exit ahead of DE's earnings report later in the month.

Suggested Options:
Trigger to buy calls at $50.25. I'm suggesting the December calls. My preference is the $50 strike.

BUY CALL DEC 50.00 DGV-LJ open interest=7997 current ask $1.87

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 50.25
Change since picked:       + 0.00
Earnings Date            11/25/09 (unconfirmed)
Average Daily Volume =        6.2 million  
Listed on  November 09, 2009         


Essex Property - ESS - close: 79.67 change: +2.35 stop: 76.40

Why We Like It:
We keep hearing about the coming disaster in commercial real estate. Yet the chart on ESS doesn't appear to be forecasting a disaster. Shares are bouncing from support near their exponential 200-dma. More aggressive traders may want to jump in now. I want to see more confirmation first. I'm suggesting a trigger to buy calls at $80.65. If triggered our first target is $86.00. Our second target is $92.50.

Suggested Options:
Trigger at $80.65. I'm suggesting the December calls. My preference is for the December 85s.

BUY CALL DEC 85.00 ESS-LQ open interest= 108 current ask $1.90

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 80.65
Change since picked:       + 0.00
Earnings Date            02/03/10 (unconfirmed)
Average Daily Volume =        500 thousand 
Listed on  November 09, 2009