Editor's Note:

We are listing a couple of bullish candidates tonight but readers should be cautious here. The S&P 500 is still sitting at resistance (remember yesterday's chart). Then again you could argue the lack of any real profit taking on yesterday's rally is positive. I would not be in a rush to open new trades and if you do I would keep positions small.

P.S. don't forget that December calls expire in about two weeks!

- James


NEW DIRECTIONAL CALL PLAYS

Alexion Pharmaceuticals - ALXN - close: 69.26 change: +0.60

Stop Loss: 67.40
Target(s): 74.75 or 79.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ALXN has spent almost two months consolidating sideways under resistance near the $70.00 level. Now the stock is on the verge of breaking out to new all-time highs. I am suggesting we use a trigger at $70.55 to open small bullish positions. If triggered we'll use a stop loss at $67.40.

I am setting our exit target at $74.75 but if you're patient I could see ALXN make a run towards $80. FYI: The Point & Figure chart for ALXN is bullish with an $82 target.

Trigger @ $70.55 (Small Positions)

- Suggested Positions -

buy the Jan $75 call (ALXN1221A75) current ask $1.55

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 01, 2011


Boston Beer Co. Inc. - SAM - close: 100.90 change: +0.99

Stop Loss: 97.75
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:
The fourth quarter is usually the strongest quarter of the year for sales of alcohol. Shares of SAM already have a lot of short interest and if the company or an analyst says anything positive or if the stock can hit a new high then we could see SAM experience a short squeeze higher.

I am suggesting a trigger to open small bullish positions at $102.00 with a stop loss at $97.75. Our exit target is $109.50. More aggressive traders may want to aim higher. FYI: The Point & Figure chart for SAM is bullish with a $117 target.

NOTE: The most recent data listed short interest at 20% of SAM's extremely small 8.3 million-share float. That's definitely a recipe for a short squeeze.

Trigger @ $102.00 (small positions

- Suggested Positions -

buy the JAN $105 call (SAM1221A105) current ask $1.75

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 03/08/12 (unconfirmed)
Average Daily Volume = 72.3 thousand
Listed on December 01, 2011