NEW DIRECTIONAL CALL PLAYS

Mobile Telesystems - MBT - close: 56.15 change: -0.58 stop: 51.90

Company Description:
Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS. MTS services over 91.33 million subscribers (as of December 31, 2008). MTS provides mobile communications in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, the territory with a total population of more than 230 million. (source: company press release or website)

Why We Like It:
I listed MBT last night as a possible bullish candidate. Shares have been consolidating sideways for months between $43 and $55. In just the past week the stock has broken out to new relative highs as the sector moves higher. On a short-term basis the stock does look a little overbought and due for a dip but bigger picture shares are poised to run higher. Traders quickly bought the dip this morning near $55.00. I am suggesting bullish positions now. We'll use a stop loss at $51.90 but more conservative traders may want to use a tighter stop loss. Our first target to take profits is at $59.85.

Suggested Position: BUY CALL APR 60.00 (MBT 10D60.00) @ 1.05

Annotated Chart:

Entry on March xxth at $ xx.xx
Earnings Date 03/31/10 (unconfirmed)
Average Daily Volume = 1.26 million
Listed on March 11th, 2010