NEW DIRECTIONAL CALL PLAYS

Cooper Industries - CBE - close: 56.49 change: +0.45

Stop Loss: 54.65
Target(s): 62.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CBE is a conglomerate that sells a variety of electrical products and equipment. Shares of CBE are in the process of breaking out from a multi-week sideways consolidation. The Point & Figure chart is already showing the bullish breakout and is currently projecting a $57 target. You'll notice on the daily chart that CBE is facing technical resistance at the simple 200-dma.

I am suggesting we use a trigger to buy calls at $57.05. If triggered we'll use a stop loss at $54.65. Our target is $62.50.

Trigger @ 57.05

- Suggested Positions -

buy the Jan $60 call (CBE1221A60) current ask $1.25

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on December 06, 2011