Editor's Note:

In addition to tonight's new candidate shares of NKE and BHP caught my eye. I would consider bullish positions on NKE if shares dipped toward $85 and positions in BHP on a dip near $92.50.

- James


NEW DIRECTIONAL CALL PLAYS

Fastenal Co. - FAST - close: 62.54 change: +0.56

Stop Loss: 58.70
Target(s): 64.75, 67.25
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
Shares of this construction supply company have broken out to new all-time highs. After several weeks of consolidating sideways on either side of $60 the stock should be rested and ready for another leg higher, especially with shorts running for cover. The most recent data listed short interest at 11.4% of the 132 million-share float.

I am suggesting we wait for a dip and use a trigger at $61.00 to open bullish call positions. If triggered we'll use a stop loss at $58.70. Our targets are $64.75 and $67.25. FYI: The Point & Figure chart for FAST is bullish with a $73 target.

Trigger @ 61.00

- Suggested Positions -

Buy the March $60 calls (FAST1119C60) current ask $3.30

- or -

Buy the March $65 calls (FAST1119C65) current ask $0.75

Annotated Chart:

Entry on February xxth at $ xx.xx
Earnings Date 04/12/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on February 8th, 2010