Editor's Note:

I am seeing plenty of bullish candidates and a few stocks you may want to keep an eye on are: ISRG, TEVA, IBM, MMM, GD, SWM, and SF.


NEW DIRECTIONAL CALL PLAYS

Adobe Systems - ADBE - close: 36.50 change: +0.50 stop: 35.79

Why We Like It:
Shares of ADBE have been trading sideways under resistance near $37.00 but they've also continued to build on the pattern of higher lows. The stock looks poised to breakout. I am suggesting a trigger to buy calls at $37.25. If triggered our first target is $39.95. Our second target is $42.25 but this might be a little optimistic. We won't have much time. ADBE is due to report earnings on December 15th and we don't want to hold over the announcement.

Suggested Options:
Since we have a set time frame to exit before December 15th and December options expire after December 18th I'm going to suggest December calls. My preference is the $38.00 strike.

BUY CALL DEC 38.00 ABJ-LX open interest=1404 current ask $0.45

Annotated Chart:

Entry  on  December xx at $ xx.xx <-- TRIGGER @ 37.25
Change since picked:       + 0.00
Earnings Date            12/15/09 (confirmed)
Average Daily Volume =        4.8 million  
Listed on  December 05, 2009         


Infosys Tech. - INFY - close: 52.46 change: +0.47 stop: 49.90

Why We Like It:
Shares of INFY have been consistently marching higher. The recent bounce from support near $50.00 is encouraging and now shares closed near their 2009 highs. I'm suggesting readers buy small call positions now wit a stop under $50.00. Our first target to take profits is at $55.75. Our second and final target is $59.50. We will plan to exit ahead of the January 12th earnings report.

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

BUY CALL JAN 55.00 IUN-AK open interest=5683 current ask $1.40

Annotated Chart:

Entry  on  December 05 at $ 52.46
Change since picked:       + 0.00
Earnings Date            01/12/10 (confirmed)
Average Daily Volume =        1.4 million  
Listed on  December 05, 2009         


Valmont Industries - VMI - close: 79.50 change: +2.03 stop: 77.65

Why We Like It:
VMI looks like it could be a short squeeze candidate. The stock has been consolidating sideways under resistance near $80.00 and its 50 and 100-dma. Shares just broke out past the 50-dma and now it's challenging resistance near $80. The November 9th high was $80.72. I am suggesting a trigger to buy calls at $81.00. If triggered our first target to take profits is at $84.90. Our second target is $88.75. FYI: The most recent data list short interest at 9% of the very small 20.1 million-share float.

Suggested Options:
I'm suggesting the January calls. If triggered at $81.00 I would use the $85 calls.

BUY CALL JAN 85.00 VMI-AQ open interest=332  current ask $1.60

Annotated Chart:

Entry  on  December xx at $ xx.xx <-- TRIGGER @ 81.00
Change since picked:       + 0.00
Earnings Date            02/10/10 (unconfirmed)
Average Daily Volume =        238 thousand 
Listed on  December 05, 2009