NEW DIRECTIONAL CALL PLAYS

Intuit - INTU - close: 54.28 change: +1.14

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
INTU is a seasonal play. Tax day is next week and INTU makes TurboTax and Quickbooks software. Shares were showing relative strength today. After two weeks of consolidating sideways INTU looks poised to breakout. The February high was $54.68. There was an intraday spike (bad tick) higher near $54.90 this week.

I am suggesting a trigger to buy calls at $55.25. If triggered we'll use a stop at $53.45. I would keep our position size small to limit our risk (1/2 or less than your normal trade size).

Trigger @ 55.25

- Suggested Positions -

Buy the May $55.00 call (INTU1121E55) current ask $1.75

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 14th, 2011