NEW DIRECTIONAL CALL PLAYS

Quest Diagnostics Inc. - DGX - close: 61.32 change: +0.87

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DGX is breaking out past short-term resistance near $61.00. Now it's about to breakout to new multi-year highs. I am suggesting a trigger to buy calls at $61.55. If triggered we'll use a tight stop under today's low at $59.45. I do want to point out that the 2006 high near $64.70 could be overhead resistance but we are aiming for $66.50. FYI: The Point & Figure chart for DGX is bullish with an $85 target.

Trigger @ 61.55

- Suggested Positions -

buy the Apr $60 call (DGX1221D60) current ask $2.20

- or -

buy the May $65 call (DGX1219E65) current ask $0.60

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 821 thousand
Listed on March 29, 2012