NEW DIRECTIONAL CALL PLAYS

MSC Industrial Direct - MSM - close: 46.62 change: +0.49 stop: 44.49

Why We Like It:
This industrial equipment seller is rebounding from support near $45.00 and its rising 50-dma. The bounce looks like a new bullish entry point although shares are still flirting with their earlier November high. I'm suggesting positions now but readers might consider waiting for a close over $46.75 or a dip back toward $45.00 as alternative entry points. Our first target is $49.75. Our second target is $52.50.

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

BUY CALL DEC 50.00 MSM-LJ open interest=474  current ask $0.60

Annotated Chart:

Picked on  November 17 at $ 46.62
Change since picked:       + 0.00
Earnings Date            01/07/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on  November 17, 2009         


Roper Industries - ROP - close: 53.98 change: -0.02 stop: 51.75

Why We Like It:
Shares of ROP closed near their 2009 highs. After weeks of consolidating under the $52.50 level the stock looks poised to run toward $60.00. The Point & Figure chart is bullish and points to a $61 target. I'm suggesting call positions now with a stop under last week's low. Our first target to take profits is at $58.50.

Suggested Options:
I'm suggesting the December calls. My preference is the $55 strike.

BUY CALL DEC 55.00 ROP-LK open interest= 92  current ask $1.30

Annotated Chart:

Picked on  November 17 at $ 53.98
Change since picked:       + 0.00
Earnings Date            02/04/10 (unconfirmed)
Average Daily Volume =        915 thousand 
Listed on  November 17, 2009