NEW DIRECTIONAL CALL PLAYS

SPX Corp. - SPW - close: 68.90 change: +0.63

Stop Loss: 68.40
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Oct. 31st.
New Positions: Yes, see below

Company Description

Why We Like It:
SPW is in the industrial goods sector. Traders have been buying the dip. Now the stock is pushing its way through technical resistance at its 150-dma and 200-dma. We want to wait for SPW to succeed on breaking out past these moving averages.

I am suggesting a trigger to buy calls at $70.25. If triggered our target is $74.00 but we'll plan on exiting prior to the Oct. 31st earnings report. FYI: The Point & Figure chart for SPW is bullish with an $85 target.

Trigger @ 70.25

- Suggested Positions -

buy the NOV $70 call (SPW1217k70) current ask $2.50

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 594 thousand
Listed on October 15, 2012