NEW DIRECTIONAL CALL PLAYS

The NASDAQ OMX Group - NDAQ - close 21.11 change +0.11 stop 51.15

The NASDAQ OMX Group, Inc. is a global exchange group that delivers trading, exchange technology, securities listing, and public company services across six continents. The Company’s offerings include trading across multiple asset classes, market data products, financial indexes, capital formation solutions, financial services and market technology products and services. It operates in three segments: Market Services, Issuer Services and Market Technology. In the United States, it operates The NASDAQ Stock Market, a registered national securities exchange. In addition, in the United States, it operates a second cash equities trading market, two options markets, a futures market and a derivatives clearinghouse. In Europe, it operates exchanges in Stockholm (Sweden), Copenhagen (Denmark), Helsinki (Finland), and Iceland as NASDAQ OMX Nordic and exchanges in Tallinn (Estonia), Riga (Latvia) and Vilnius (Lithuania) as NASDAQ OMX Baltic. (source: company press release or website)

Why We Like It:
NDAQ has 3 levels of support in the $20.60 to $20.80 level that are converging right now. First, $20.60 is a key pivot level dating back to August 2009, October 2009, and December 2009. The stock broke above this pivot level in mid March and has retraced back to test it which should now act as support. NDAQ also bounced nicely off of its 50-day SMA and an upward trend line from February at about $20.80. This gives us a good reference point to place a stop just below at $19.90, which is also below its 100-day and 200-day SMA's. I suggest traders buy CALLS at current levels. Our target is $22.25 with a more aggressive target at $22.90. The stock will probably find some resistance at its 20-day SMA near $21.75. Our stop is $19.90 and our time frame is about two weeks.

Suggested Position: Long JUNE $21.00 CALL, current ask $1.00

Annotated chart:

Entry on May xx at $xx.xx
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 2.9 million
Listed on May 1, 2010