NEW DIRECTIONAL CALL PLAYS

Sears Holding - SHLD - close: 92.68 change: +2.21 stop: 88.75

Why We Like It:
I seriously have my doubts about the duration and strength of this market rebound especially with today's lack of volume but we might as well take advantage of the short-term trend. Shares of SHLD have been building support in the $89-90 zone for days now. Today's rally produced a minor breakout from this trading range. I'm suggesting very small positions since this is an aggressive trade with a short time frame. SHLD is due to report earnings next week on Feb. 23rd and we do not want to hold over the report.

Buy calls now. Use a stop loss at $88.75, which is under Friday's low. Our first target is $97.45. Our second, very optimistic target is $102.00.

Suggested Options:
I am suggesting the March $95 calls.

BUY CALL MAR 95.00 (KTQ1020C95) open interest=1542 current ask $3.60

Annotated Chart:

Entry  on  February 16 at $ 92.68 (small positions)
Change since picked:       + 0.00
Earnings Date            02/23/10 (unconfirmed)
Average Daily Volume =        1.7 million  
Listed on  February 16, 2010