NEW DIRECTIONAL CALL PLAYS

SPX Corp. - SPW - close: 69.39 change: -0.66

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: up to the Feb. 16 earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
SPW is an industrial goods and machinery company. Shares have been marching higher. The stock finally made its way past resistance at its simple 200-dma in the last couple of weeks. On a short-term basis traders have been buying the dips near its rising 10-dma. Now SPW is testing resistance at the $70.00 level.

I am suggesting a trigger to buy calls at $70.50 with a stop loss at $67.90. We will aim for the $74.75 mark but more aggressive traders could aim higher. We do not want to hold over the Feb. 16th earnings report. FYI: The Point & Figure chart for SPW is bullish with an $82 target.

Trigger @ 74.75

- Suggested Positions -

buy the Feb $70 call (SPW1218B70) current ask $2.05

Annotated Chart:

Entry on January xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 711 thousand
Listed on January 26, 2012