NEW DIRECTIONAL CALL PLAYS

iShares Biotech ETF - IBB - close: 124.48 change: +1.18

Stop Loss: 121.75
Target(s): 129.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Biotech stocks are showing strength and the IBB biotech ETF has broken out past key resistance near $122.00. The stock tested this $122 level last week as support. Readers may want to buy calls now. I want to see the IBB get past the $125.00 level. Thus I am suggesting a trigger to buy calls at $125.25. Our multi-week target is $129.75. FYI: The Point & Figure chart for IBB is bullish with a $181 target.

Trigger @ $125.25

- Suggested Positions -

buy the Apr $125 call (IBB1221D125) current ask $1.60

- or -

buy the May $125 call (IBB1219E125) current ask $2.80

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 403 thousand
Listed on April 02, 2012