NEW DIRECTIONAL CALL PLAYS
Stanley Black & Decker, Inc. - SWK - close: 68.07 change: +1.20
Stop Loss: 65.75
Target(s): 69.90, 72.45
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes
Why We Like It:
SWK has spent the last several days consolidating sideways. Today's move (+1.7) pushed SWK to a new all-time high. While I would prefer to buy calls on a dip near $65.00 that may not happen. I'm suggesting bullish positions now and we'll use a stop loss at $65.75. Keep your position size small to limit your risk. Just because these call options look cheap do not go overboard. Repeat - small positions only.
FYI: The Point & Figure chart for SWK is bullish with a $77 target.
Open Positions Now!
- Suggested Positions -
Buy the 2011 January $70 calls (SWK1122A70) current ask $0.70
- or -
Buy the 2011 February $70 calls (SWK1119B70) current ask $1.60
Entry on January 4th at $ xx.xx
Earnings Date 01/27/11 (confirmed)
Average Daily Volume = 1.6 million
Listed on January xxth, 2010