Editor's Note:

Nimble traders may want to check out shares of Goldman Sachs (GS). The stock was showing relative strength today. I suspect GS will rally up into its earnings report, which is scheduled for October 16th. I would not hold over the announcement. That's not enough time to list GS as a play on the newsletter but readers may be able to get in, capture a few points, and get out.


NEW DIRECTIONAL CALL PLAYS

PVH Corp. - PVH - close: 95.83 change: +1.12

Stop Loss: 94.25
Target(s): 99.85
Current Option Gain/Loss: Unopened
Time Frame: exit prior to October expiration
New Positions: Yes, see below

Company Description

Why We Like It:
PVH manufacturers a wide array of clothing and consumer goods products. The stock has been consolidating sideways under resistance near $96.00 the last few weeks. A rally past $96 would be a new record high.

I am suggesting we open small bullish positions if PVH trades at $96.05. Our target is $99.85. This is a short-term trade because I am listing October options, which expire in just about two weeks. You could use November options but the bid/ask spread is a lot wider.

Trigger @ 96.05

- Suggested Positions -

buy the Oct $97.50 call (PVH1220j97.5) current ask $1.40

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 842 thousand
Listed on October 4, 2012