NEW DIRECTIONAL CALL PLAYS

Teradata Corp. - TDC - close: 56.70 change: -1.07

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TDC has had a consistent trend of higher lows and higher highs for months. Traders have bought dips at the 50-dma since last November. Today's pull back toward support near $56.00 and its 50-dma is a chance to hop on board. The stock has seen a -9% correction. The combination of the correction and the pull back to support at its long-term up trend looks like an entry point.

I am suggesting we launch bullish positions tomorrow if both TDC and the S&P 500 are positive at the open. Nimble traders could choose to try and buy a dip near $56.00 instead. We'll use a stop loss at $54.90. Our target is $62.00. FYI: The Point & Figure chart for TDC is bullish with a $79 target.

- Suggested Positions -

Buy the AUG $60 call (TDC1120H60) current ask $1.10

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/04/11 (confirmed)
Average Daily Volume = 1.5 million
Listed on July 18, 2011