NEW DIRECTIONAL CALL PLAYS

EQUINIX Inc. - EQIX - close: 103.02 change: +0.50 stop: 97.45

Why We Like It:
EQIX is an IT services firm that is hitting new 52-week highs. The breakout over resistance at the $100 level is certainly bullish and the stock should have a clear path toward the $110 level. I'm suggesting small bullish positions now with a stop loss at $97.45. Our target is $109.50.

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

BUY CALL JAN 105 FQS-AA open interest=683  current ask $3.70

Annotated Chart:

Entry  on  December 09 at $103.02
Change since picked:       + 0.00
Earnings Date            02/10/10 (unconfirmed)
Average Daily Volume =        501 thousand 
Listed on  December 09, 2009         


F5 Networks - FFIV - close: 52.08 change: +0.78 stop: 47.99

Why We Like It:
This is a momentum play. FFIV is hitting new eight-year highs with the recent breakout above resistance at the $50.00 level. I'm suggesting readers open small bullish positions here with a stop loss at $47.99, which is just under the 30-dma. Our stop loss is a little wide so keep your position size small. Our first target to take profits is at $54.90. Our second target is $57.45.

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

BUY CALL JAN 55.00 FLK-AK open interest=846  current ask $1.45

Annotated Chart:

Entry  on  December 09 at $ 52.08
Change since picked:       + 0.00
Earnings Date            01/20/10 (unconfirmed)
Average Daily Volume =        1.2 million  
Listed on  December 09, 2009