NEW DIRECTIONAL CALL PLAYS

Verizon Communication - VZ - close: 41.37 change: +0.49

Stop Loss: 39.95
Target(s): 45.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this telecom giant are ignoring the market's weakness. Instead VZ is marching higher with a bullish trend of higher highs and higher lows. The breakout past $40 a couple of weeks ago was a big win for the bulls.

I am suggesting a trigger to buy calls at $41.55. We'll start with a stop loss at $39.95 but more conservative traders may want to use a stop closer to $40.50 instead. Keep in mind that VZ does not move super fast so we'll need to show some patience.

Trigger @ 41.55

- Suggested Positions -

buy the Jun $42 call (VZ1216F42) current ask $0.54

- or -

buy the Jul $43 call (VZ1221G43) current ask $0.49

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 13.8 million
Listed on May 17, 2012