NEW DIRECTIONAL CALL PLAYS

Honeywell Intl. - HON - close: 63.53 change: +0.73

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HON has been consistently working its way higher. Today's show of relative strength is significant because it's a bullish breakout past resistance near $63.00 and its mid October highs near $63.50.

I am suggesting new bullish positions at the open tomorrow but more nimble traders could try and wait and jump in on a dip near $63.00, which should now be short-term support.

Our multi-week target is $68.00. FYI: The Point & Figure chart for HON is bullish with a $84 target.

NOTE: HON stock will begin trading ex-dividend on November 16th, 2012. The cash dividend should be about 41 cents so HON stock will open lower by at least 41 cents on that session.

- Suggested Positions -

buy the DEC $65 call (HON1222L65) current ask $0.93

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 3.8 million
Listed on November 6, 2012


M&T Bank Corp. - MTB - close: 104.70 change: +1.48

Stop Loss: 103.25
Target(s): 109.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MTB is a regional bank. The stock soared to new multi-year highs following its bullish earnings report back in October. Since then MTB has been digesting gains and consolidating under resistance near the $105.00-105.50 level.

The October 18th high was $105.33. I am suggesting a trigger to buy calls at $105.50. Our target is $109.75. More aggressive traders could aim higher. FYI: The Point & Figure chart for MTB is bullish with a $132 target.

Trigger @ 105.50

- Suggested Positions -

buy the DEC $105 call (MTB1222L105) current ask $2.30

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on November 6, 2012