NEW DIRECTIONAL CALL PLAYS

Anadarko Petroleum - APC - close: 83.95 change: +1.40

Stop Loss: 79.90
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of APC are on the verge of a major breakout past resistance near $85.00. This would produce a new all-time, record high for the stock. We want to be ready when that happens. I am suggesting a trigger to buy calls at $85.50. Our multi-week target is the $98.50 level.

FYI: The Point & Figure chart for APC is bullish with a $105 target.

Trigger @ $85.50

- Suggested Positions -

buy the DEC $90 call (APC1117L90) current ask $2.17

- or -

buy the JAN $90 call (APC1221A90) current ask $3.80

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 01/31/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on November 8, 2011


DaVita Inc. - DVA - close: 74.46 change: +0.36

Stop Loss: 72.25
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DVA provides kidney dialysis and similar services across the U.S. The stock has been consolidating under heavy resistance near $75.00 and its 100-dma and exponential 200-dma. A breakout here would be very bullish.

I am suggesting a trigger to buy calls at $75.25. If triggered we'll aim for the $79.50 mark. More aggressive traders could aim for the May-June lows near $82.50 instead. FYI: The Point & Figure chart for DVA is bullish with a $97 target.

Trigger @ $75.25

- Suggested Positions -

buy the DEC $75 call (DVA1117L75) current ask $3.10

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on November 8, 2011


Flowserve Corp. - FLS - close: 99.98 change: +1.21

Stop Loss: 96.75
Target(s): 109.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this industrial stock have been consolidating under resistance at the $100 level and its exponential 200-dma the last few days. A breakout here could signal a run toward the July highs.

I am suggesting a trigger to buy calls at $101.00 with a target at $109.50. More conservative traders may want to exit at the simple 200-dma instead. Please note that I do consider this a slightly more aggressive trade because FLS can be so volatile. We want to keep our position size small to limit our risk. FYI: The Point & Figure chart for FLS is bullish with a $108 target.

Trigger @ $101.00 (small positions)

- Suggested Positions -

buy the DEC $105 call (FLS1117L105) current ask $3.30

- or -

buy the JAN $105 call (FLS1221A105) current ask $5.20

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 712 thousand
Listed on November 8, 2011