NEW DIRECTIONAL CALL PLAYS

BorgWarner Inc. - BWA - close: 81.91 change: +1.33

Stop Loss: 78.75
Target(s): 89.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BWA makes parts for automobile production. The company recently reported earnings that were somewhat mixed but the stock is climbing on the news anyway. A downgrade for BWA yesterday had little affect on the stock price. Now BWA is on the verge of breaking out past major resistance near the $82.00 level.

A breakout would mean new record highs and could produce a some short covering in BWA. The most recent data listed short interest at 14% of the 108 million share float.

I am suggesting a trigger to open bullish positions at $82.35. If triggered we'll use a stop loss at $78.75. Our target is $89.00. FYI: The Point & Figure chart for BWA is bullish with a $108 target.

Trigger @ $82.35

- Suggested Positions -

buy the Mar $85 call (BWA1217C85) current ask $1.40

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on February 16, 2012


Jones Lang LaSalle - JLL - close: 83.41 change: +2.98

Stop Loss: 79.95
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JLL is in the real estate and property management industry. After a very strong January rally the stock has spent the last couple of weeks digesting gains in a sideways consolidation.

Now JLL appears to be on the verge of breaking out from this trading range. The high today was $83.49. I am suggesting a trigger to buy calls at $83.75 with a stop loss at $79.95. Our target is $89.50. FYI: The Point & Figure chart for JLL is bullish with a $105 target.

Trigger @ $83.75

- Suggested Positions -

buy the Mar $85 call (JLL1217C85) current ask $2.50

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 518 thousand
Listed on February 16, 2012