NEW DIRECTIONAL CALL PLAYS

Continental Resources - CLR - close: 89.49 change: +0.64

Stop Loss: 86.75
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CLR is a domestic oil producer. The stock could see a short squeeze. The most recent data listed short interest at 19% of the small 40.9 million-share float. Currently the stock is bouncing after a -12% correction from its intraday high near $97. Traders bought the dip near $85 and its rising 30-dma.

I am suggesting we open bullish positions if CLR trades at $90.25 or higher. We will set our exit target at $99.00 since the trend of higher highs should lead CLR toward the $100 area.

FYI: The Point & Figure chart for CLR is bullish with a long-term $140 target.

Trigger @ $90.25

- Suggested Positions -

buy the Apr $95 call (CLR1221D95) current ask $2.80

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 08, 2012