Editor's Note:

FYI: I'm watching PSMT as a potential bullish candidate if it can breakout past $80.00. Nimble traders may want to consider bearish positions on SI but I would not hold over the April 25th earnings report.


NEW DIRECTIONAL CALL PLAYS

Sturm, Ruger & Co. - RGR - close: 51.46 change: +1.44

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: Unopened
Time Frame: exit prior to May 1st earnings announcement
New Positions: Yes, see below

Company Description

Why We Like It:
Firearms maker RGR is showing relative strength. Traders bought the dip at its rising 20-dma this morning and shares look poised to breakout over short-term resistance near $52.00. Expectations for RGR's earnings results should be strong given the company's recent declaration that they had so much demand that they had to stop taking new orders. The stock could see a run up into earnings and a move over $52 could spark more short covering.

I am suggesting a trigger to open small bullish positions at $52.25. We do not want to hold over the May 1st earnings report.

Trigger @ $52.25

- Suggested Positions -

buy the May $55 call (RGR1219E55) current ask $1.60

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/01/12 (confirmed)
Average Daily Volume = 493 thousand
Listed on April 18, 2012