NEW DIRECTIONAL CALL PLAYS

Sherwin-Williams Co. - SHW - close: 77.50 change: +0.26

Stop Loss: 73.75
Target(s): 79.90
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
SHW's breakout past $74 back in November was significant. The stock has since broken the bearish trend of lower highs. As investors anticipate greater economic improvement in 2011 they could push SHW back toward its all-time highs near $80. I am suggesting we wait for a dip to $76.10 and buy calls on the pull back. If triggered we'll use a stop loss at $73.75. Our first target is $79.90.
FYI: The Point & Figure chart is bullish and currently forecasts a $92 target.

Trigger @ $76.10

Suggested Positions:

Buy the 2011 January $75.00 calls (SHW1122A75)

- or -

Buy the 2011 March $80.00 calls (SHW1119C80)

Annotated Chart:

Entry on December xxth at $ xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 675 thousand
Listed on December 9th, 2010