NEW DIRECTIONAL CALL PLAYS

Hess Corp - HES - close: 87.03 change: +2.23

Stop Loss: 82.40
Target(s): 92.25, 98.50
Current Option Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Oil and gas stocks continue to show relative strength. HES is a refiner as well and the stock just broke out past resistance near $85.00. I am suggesting bullish positions now. You might want to wait and cross your fingers the stock provides a dip back into the $86-85 zone so we can buy a dip instead. The $90.00 level might offer some round-number resistance but I'm setting our targets at $92.25 and $98.50.
The Point & Figure chart for HES is bullish with a $107 target.

Open Bullish Positions Now

- Suggested Positions -

Buy the April $90 calls (HES1116D90) current ask $2.76

- or -

Buy the May $90 calls (HES1121E90) current ask $4.15

Annotated Chart:

Entry on March 1st at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on February 28th, 2010


Ross Stores Inc. - ROST - close: 72.04 change: +0.37

Stop Loss: 68.95
Target(s): 74.90, 77.75
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 4 weeks
New Positions: Yes see below

Company Description

Why We Like It:
Investors seem unafraid of what rising oil prices and gasoline prices might do to consumer spending. Retail stocks are still rising. Shares of ROST are on the verge of breaking out to new highs. I am suggesting new bullish positions now. More conservative traders may want to wait for a new high at $73.00 before initiating positions. Our targets are $74.90 and $77.75. However, we will plan to exit ahead of the mid March earnings report.
The Point & Figure chart for ROST is bullish with a $97 target.

- Suggested Positions -

Buy the April $75 calls (ROST1116D75) current ask $1.45

Annotated Chart:

Entry on March 1st at $ xx.xx
Earnings Date 03/17/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on February 28th, 2010