NEW DIRECTIONAL CALL PLAYS

3M Co. - MMM - close: 87.89 change: +0.33

Stop Loss: 86.45
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Dow-component MMM continues to drift higher. Shares are consolidating under resistance near $88.00 with a bullish trend of higher lows. The stock looks poised to breakout soon. I am suggesting a trigger to buy calls at $88.50. The $90 level could be round-number resistance but we're setting our exit target at $94.00. We'll use a lower target for our February calls.

In the news headlines today MMM announced it was raising its cash dividend by 7% to 59 cents a share. This is the 54th year in a row that MMM has raised its dividend. It's the 95th year that MMM has paid a dividend without interruption (source: company press release). Dividend is payable on March 12 to shareholders of record on Feb. 17th.

FYI: The Point & Figure chart for MMM is bullish with a $109 target.

Breakout Trigger (buy calls) @ $88.50

- Suggested Positions -

buy the Feb $87.50 call (MMM1218B87.5) current ask $0.80
(Feb. options expire after Feb. 17th)

- or -

buy the MAR $90 call (MMM1217C90) current ask $0.82

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on February 07, 2012