NEW DIRECTIONAL CALL PLAYS

Millicom Intl. Cellular - MICC - close: 93.43 change: +0.73

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description:
Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 14 countries in Asia, Latin America and Africa. It also operates cable and broadband businesses in five countries in Central America. The Group’s mobile operations have a combined population under license of approximately 267 million people (source: company press release or website)

Why We Like It:
MICC saw an ugly couple of weeks there in late November and early December. The stock has broken not only its simple 200-dma, which is normally technical support, but also its long-term up trend dating back several months. Fortunately, the stock managed a bullish double bottom and the rally about a week ago was strong enough to breakthrough the downtrend of lower highs.

I am suggesting small bullish positions now. If you want you could wait for MICC to close over potential resistance in the $94.50 or $95.00 levels. Or you could wait for another dip or bounce in the $91-90.00 zone, which should be new short-term support. I'm suggesting small positions now because MICC can be a little bit volatile. Plus, if we do see a dip and bounce near $90 we can add to positions. Our exit target is $99.50. Aggressive traders could aim for the 2010 highs near $102.50.

FYI: It looks like MICC must have had a special dividend because several of the options have odd strike prices ending in .40.

Open Positions Now at Current Levels

- Suggested Positions -

Buy the 2011 January 95.40 calls (MICC1122A95.4) current ask $2.05

- or -

Buy the 2011 April $100.00 calls (MICC1116D100) current ask $3.50

Annotated Chart:

Entry on December 23rd at $ xx.xx
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume = xxx million
Listed on December 22nd, 2010