NEW DIRECTIONAL CALL PLAYS

Pioneer Nat. Res. - PXD - close: 93.24 change: +0.21

Stop Loss: 89.45
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Oil prices continue to creep higher and that should be a boost for the energy stocks. Pioneer Natural Resources has been consolidating under resistance near the $95.00 level the last several days. You can see that the stock has been building on a bullish trend of higher lows, which would suggest a breakout higher soon.

I am listing a trigger to buy calls at $95.05. We want to keep our position size small because PXD can be a volatile stock and we're using a wide stop loss. Our target is $99.75 since the $100 level and the July highs will be resistance. More aggressive traders may want to aim higher (I'd use the $104-105 area). FYI: The Point & Figure chart for PXD is bullish with a $108 target.

Trigger @ $95.05 (Small Positions Only)

- Suggested Positions -

buy the DEC $100 call (PXD1117L100) current ask $2.25

- or -

buy the JAN $100 call (PXD1221A100) current ask $4.20

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 02/06/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 15, 2011


Stanley Black & Decker Inc. - SWK - close: 67.84 change: +0.45

Stop Loss: 65.49
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes , see below

Company Description

Why We Like It:
Shares of SWK are flirting with a breakout past its simple 200-dma and the $68.00 level. I am suggesting we use a trigger to buy calls at $68.50. If triggered we'll use a stop loss at $65.49. Our target is the $74.00 level. FYI: The Point & Figure chart for SWK is bullish with a $103 target.

Trigger @ $68.50

- Suggested Positions -

buy the DEC $70 call (SWK1117L70) current ask $1.85

- or -

buy the JAN $72.50 call (SWK1221A72.5) current ask $2.30

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on November 15, 2011