NEW DIRECTIONAL CALL PLAYS

VMware, Inc. - VMW - close: 100.19 change: +3.00

Stop Loss: 93.95
Target(s): 104.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Cloud computing remains a hot topic for investors. VMW is definitely a contender in this space. The stock's up trend has stalled at round-number resistance near $100. I suspect the market could see some profit taking following the jobs data tomorrow morning. Thus we want to be in a buy-the-dip mode.

I am suggesting we open small bullish positions in VMW on a dip at $97.00 with a stop loss at $93.95. Recent support has been the $94.00-95.00 area. If triggered at $97.00 we'll aim for the $104.75 mark.

buy-the-dip Trigger @ $97.00

- Suggested Positions -

buy the NOV $100 call (VMW1119K100)

- or -

buy the DEC $100 call (VMW1117L100)

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 01/24/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on November 3, 2011