Editor's Note:

The market's recent strength has produced a lot of potential bullish candidates. A few stocks that caught my eye today are: MMM, COST, ESRX, MICC, IBM, ISRG, GOOG


NEW DIRECTIONAL CALL PLAYS

Bucyrus Intl. - BUCY - close: 54.00 change: +2.21 stop: 51.90

Why We Like It:
The commodity trade is back on with the dollar slipping toward its 2009 lows. Shares of BUCY have rallied back to the top of their trading range. I am suggesting readers buy calls if BUCY hits $55.65. If triggered our first target is $59.90. Our second target is $64.00.

Suggested Options:
I'm suggesting the 2010 January calls. My preference is the $60 strike.

BUY CALL JAN 60.00 HIK-AL open interest=1572 current ask $1.70

Annotated Chart:

Picked on  December 01 at $ xx.xx <-- TRIGGER @ 55.65
Change since picked:       + 0.00
Earnings Date            02/18/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  December 01, 2009         


Caterpillar - CAT - close: 59.68 change: +1.29 stop: 58.49

Why We Like It:
CAT has been consolidating sideways under resistance in the $60-61 zone. Shares have managed to keep the bullish trend of higher lows intact. The November highs were near $60.90 and the October 20th high was $61.28. I am suggesting readers buy calls at $61.51. If triggered our first target is $64.95. Our second target is $69.00.

Suggested Options:
I am suggesting the January calls. My preference is the $65 strike.

BUY CALL JAN 65.00 CAT-AM open interest=7887 current ask $0.92

Annotated Chart:

Picked on  December 01 at $ xx.xx <-- TRIGGER @ 61.51
Change since picked:       + 0.00
Earnings Date            01/26/10 (unconfirmed)
Average Daily Volume =        7.8 million  
Listed on  December 01, 2009