NEW DIRECTIONAL CALL PLAYS

Kohl's Corp. - KSS - close: 54.34 change: +0.07

Stop Loss: 53.75
Target(s): 57.90, 59.95
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The RLX retail index has been consolidating sideways for almost all of December. The action today in the RLX actually looks bearish but it needs to see some follow through lower before I would really worry. Meanwhile shares of KSS did not see the same selling pressure today. This stock has still been consolidating sideways the last few weeks and if KSS can breakout over resistance at $55 it could herald a new leg higher. I am suggesting a trigger to buy calls at $55.05. If triggered we'll start the play with a stop loss at $53.75. Our targets are $57.90 and $59.95.
FYI: The Point & Figure chart for KSS is bullish with a $73 target.

Trigger @ 55.05

- Suggested Positions -

Buy the 2011 February $55.00 calls (KSS1119B55)

- or -

Buy the 2011 April $57.50 calls (KSS1116D57.5)

Annotated Chart:

Entry on January xxth at $ xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on January 4th, 2010