NEW DIRECTIONAL CALL PLAYS

Caterpillar - CAT - close: 60.40 change: +1.62 stop: 57.75

Why We Like It:
Dow-component CAT is bouncing from the $58.00 level and closing above round-number resistance at the $60.00 mark. There is potential resistance at the October high but with the market in breakout mode I don't think it will slow down CAT. I'm suggesting bullish positions now. We'll use a relatively tight stop at $57.75. Our first target to take profits is at $64.00. Our second target is $68.00.

Suggested Options:
I am suggesting the December calls. My preference is the $60 strike.

BUY CALL DEC 60.00 CAT-LL open interest=9003 current ask $2.80

Annotated Chart:

Picked on  November 16 at $ 60.40
Change since picked:       + 0.00
Earnings Date            01/26/10 (unconfirmed)
Average Daily Volume =       11.3 million  
Listed on  November 16, 2009         


Deckers Outdoor - DECK - close: 98.95 change: +1.88 stop: 96.95

Why We Like It:
DECK is challenging resistance near the $100 level. If shares can breakout here it would be very bullish. The high today was $100.54. I'm suggesting a trigger to buy calls at $100.75. If triggered our first target is $107.50.

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

BUY CALL DEC 105 QUK-LA open interest= 367 current ask $2.45

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 100.75
Change since picked:       + 0.00
Earnings Date            02/25/10 (unconfirmed)
Average Daily Volume =        659 thousand
Listed on  November 16, 2009