NEW DIRECTIONAL CALL PLAYS

Apple Inc. - AAPL - close: 346.28 change: -3.85

Stop Loss: 334.40
Target(s): 359.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
AAPL has spent the last several days digesting its gains following the big bounce off its April lows (near $320). The $340 level appears to have multiple layers of converging support. We want to be ready to buy a dip should one appear this week. I am suggesting we buy calls at $341.00. More conservative traders could use a tight stop close to the $340 level (maybe 338.50). I am suggesting a stop loss at $334.40. If triggered at $341.00 our upside target is $359.00. More aggressive traders could aim higher. A breakout past the February highs near $365 might portend a run toward the $400 level.

Buy-the-dip Trigger @ $341.00

- Suggested Positions -

Buy the June $350 calls (AAPL1118F350)

Annotated Chart:

Entry on May xxth at $ xx.xx
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume = 16.6 million
Listed on May 2nd, 2011