NEW DIRECTIONAL CALL PLAYS

VimpelCom Ltd - VIP - close 15.81 change +0.37 stop 14.80

Target(s): 16.70, 17.35
Key Support/Resistance Areas: 17.50, 16.75, 16.05, 15.30, 20-day SMA
Current Gain/Loss: Unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see trigger

Company Description:
VimpelCom Ltd., formerly New Spring Company Ltd., is a telecommunication operator. The Company provides voice and data services through a range of wireless, fixed and broadband technologies. The Company operates its mobile telecommunications services in Russia, Kazakhstan, Ukraine, Armenia, Tajikistan, Uzbekistan and Georgia. In August 2010, the Company completed the acquisition of OJSC Vimpel Communications. (source: company press release or website)

Why We Like It:
VIP has broken out above a key long term pivot level near $15.30 on heavy volume. The stock looks poised to fill a gap from August that is about $1 higher from current levels. I would like to see the stock retrace some of todays's gains and suggest readers use a trigger of $15.60 to launch bullish positions. Our initial stop is $14.80 which is below the primary uptrend line and rising 20 and 50-day SMA's, which should provide support on dips. Our initial targets are +7% and +11% from current levels.

Suggested Position: Buy December $15.00 CALL if VIP trades to $15.60, current ask $1.25, estimated ask at entry $1.10

Annotated chart:

Entry on November XX
Earnings Date 11/24/2010 (unconfirmed)
Average Daily Volume: 3.5 million
Listed on November 3, 2010