NEW DIRECTIONAL CALL PLAYS

Health Care REIT, Inc. - HCN - close: 60.53 change: +1.22

Stop Loss: 58.80
Target(s): 63.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Nov. 6th,
New Positions: Yes, see below

Company Description

Why We Like It:
HCN is a REIT that focuses on retirement homes and healthcare properties. Shares have a long-term bullish trend of higher lows and higher highs. Investors have been buying dips and that might be due to HCN's 4.9% dividend yield. Today saw HCN breakout past resistance at $60.00.

I am suggesting bullish positions at the open tomorrow. More nimble traders could try and open positions on a dip near $60.00, which should be new short-term support. Our multi-week target is $63.50 but we'll exit prior to the Nov. 6th earnings report. FYI: The Point & Figure chart for HCN is bullish with a $70 target.

- Suggested Positions -

buy the NOV $60 call (HCN1217k60) current ask $1.20

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 2.8 million
Listed on October 18, 2012