NEW DIRECTIONAL CALL PLAYS

Deere & Co. - DE - close: 78.67 change: +0.52

Stop Loss: 74.40
Target(s): 82.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The threat of a global economic slowdown seems to be easing. That should make investors more comfortable with industrial and cyclical names. Plus, rival CAT reported strong earnings results a few days ago. The trend for DE looks bullish but shares are short-term overbought.

We are suggesting investors buy calls on a dip at $76.00 with a stop loss at $74.40. Our multi-week target is $82.00. FYI: The Point & Figure chart for DE is bullish with a $97 target.

buy-the-dip Trigger @ $76.00

- Suggested Positions -

buy the NOV $77.50 calls (DE1119K77.5)

- or -

buy the DEC $80 calls (DE1117L80)

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 11/23/11 (unconfirmed)
Average Daily Volume = 5.6 million
Listed on October 29, 2011


iShares U.S.Financials ETF - IYF - close: 51.89 change: +0.14

Stop Loss: 48.75
Target(s): 54.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EU leaders have essentially kicked the can down the road a significant ways. Worries over a debt default in the EU and the spread of bad debt contagion should fade from the headlines. That will make investors more comfortable owning the financial stocks.

On a short-term basis the financials look overbought. We want to buy a dip in the IYF at $50.50 with a stop loss at $48.75. Our multi-week target is $54.00. FYI: The Point & Figure chart for IYF is bullish with a $75 target.

buy-the-dip Trigger @ $50.50

- Suggested Positions -

buy the NOV $50 call (IYF1119K50) current ask $2.90

- or -

buy the DEC $53 call (IYF1117L53) current ask $1.65

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 697 thousand
Listed on October 29, 2011


Visa, Inc. - V - close: 95.10 change: +0.70

Stop Loss: 89.49
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of Visa spent two weeks consolidating sideways in the $90-95 range. Friday saw the stock breakout past resistance to close at new 52-week highs. Aggressive traders may want to buy calls right here. We are concerned that the major market indices are short-term overbought and due for a pull back. That's why we're suggesting readers wait and look for a dip in Visa before initiating positions.

We are listing a buy-the-dip entry point at $93.00 with a stop loss at $89.49 (under last week's low). Our target is $99.75. FYI: The Point & Figure chart for V is bullish with a $119 target.

buy-the-dip Trigger @ $93.00

- Suggested Positions -

buy the Nov. $95 call (V1119K95) current ask $2.53

- or -

buy the Dec. $95 call (V1117L95) current ask $3.80

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 10/26/11
Average Daily Volume = 5.0 million
Listed on October 29, 2011