NEW DIRECTIONAL CALL PLAYS

Diamond Foods Inc. - DMND - close: 76.33 change: -1.38

Stop Loss: 73.25
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
DMND has been an exceptional performer over the last four months. Shares are currently pulling back from all-time highs. The stock looks like it will test support near $75.00 and its up trend of higher lows soon. I am suggesting we launch small bullish positions on a dip at the $75.00 mark with a stop loss at $73.25. More conservative traders could wait for a dip closer to the 30-dma as their entry point instead.

If triggered our first target is $79.50. FYI: The Point & Figure chart for DMND is bullish with a $90 target.

Trigger @ $75.00

- Suggested Positions -

buy the AUG $75 call (DMND1120H75) -small positions-

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 10/05/11 (unconfirmed)
Average Daily Volume = 237 thousand
Listed on July 11, 2011