NEW DIRECTIONAL CALL PLAYS

Zebra Technologies - ZBRA - close: 28.39 change: +0.01 stop: 27.45

Why We Like It:
ZBRA makes computer peripherals and RFID technology. The stock recently broke out over key resistance near $28.00. On Monday the stock produced a bearish reversal but there has been no follow through, which makes me think the path of least resistance is still higher. I do consider this an aggressive trade. Volume on the stock is low and volume on the options is low so keep positions small to limit your risk. I'm suggesting call positions now but readers could wait for a new relative high over Monday's $28.68. Our first target is $30.00. Our second target is $32.00 but that looks pretty aggressive and we may end up exiting early if the market does correct.

Suggested Options:
I'm suggesting the February calls. My preference is the $30 strike.

BUY CALL FEB 30.00 ZBQ-BF open interest= 68  current ask $0.50

Annotated Chart:

Entry  on  December 30 at $ 28.39 
Change since picked:       + 0.00
Earnings Date            02/09/10 (unconfirmed)
Average Daily Volume =        166 thousand 
Listed on  December 30, 2009