NEW DIRECTIONAL CALL PLAYS
SPX Corp. - SPW - close: 68.88 change: +1.18
Stop Loss: 66.45
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below
Why We Like It:
SPW is in the industrial goods sector. Shares have been consolidating after failing at resistance near $70.00 a few days ago. Since then SPW appears to have been building a bull-flag pattern. Traders just bought the dip at technical support near its converging 10-dma, 100-dma, and 200-ema.
I want to see a little bit more confirmation of this rebound so I am suggesting a trigger to buy calls at $69.25 with a stop loss at $66.45, which is just under today's low. More conservative traders may want to wait for SPW to breakout past $70.00 or past the September high at $70.43 before initiating positions.
Our target is $74.50.
The Point & Figure chart for SPW is bullish with an $85 target.
Trigger @ 69.25
- Suggested Positions -
buy Oct $70 call (SPW1220j70) current ask $1.75
Entry on September xx at $ xx.xx
Average Daily Volume = 622 thousand
Listed on September 20, 2012