NEW DIRECTIONAL CALL PLAYS

Trimble Navigation Ltd. - TRMB - close: 44.72 change: +0.72

Stop Loss: 42.70
Target(s): 49.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TRMB is in the global positioning industry focused on government and commercial users. The stock has been consolidating sideways under resistance near $45.00 the last couple of weeks. Now it's on the verge of a bullish breakout.

I am suggesting a trigger to buy calls at $45.25 with a stop loss at $42.70. Our target is $49.50. FYI: The Point & Figure chart for TRMB is bullish with a $63 target.

Trigger @ 45.25

- Suggested Positions -

buy the Jan $45 call (TRMB1221A45) ask $1.50

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 544 thousand
Listed on December 22, 2011


iShares Transportation - IYT - close: 89.69 change: +0.40

Stop Loss: 87.45
Target(s): 94.75 or 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The transportation sector has been showing some relative strength. The index and the IYT ETF is poised for a breakout past resistance near $90.00 and its simple 200-dma.

I am suggesting a trigger to buy calls at $90.75 with a stop loss at $87.45. I have listed individual targets depending on which month you choose to play.

Trigger @ 90.75

- Suggested Positions -

buy the Jan $95 call (IYT1221A95) ask $0.50
target 94.75

- or -

buy the Feb $95 call (IYT1218B95) ask $1.40
target 98.50

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 582 thousand
Listed on December 22, 2011