NEW DIRECTIONAL CALL PLAYS

Dover Corp - DOV - close: 61.57 change: +0.87

Stop Loss: 59.85
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
When DOV reported earnings back in October the company lowered its guidance yet that hasn't stopped investors from buying the dips. Shares have a steady trend of higher lows. The company recently announced a $1 billion stock buyback program for the next 12 to 18 months.

It looks like DOV is coiling for a breakout past resistance at $62.00. The Nov 6th high was $62.23. I am suggesting small bullish positions if DOV can trade at $62.30. We will aim for $67.50.

Trigger @ 62.30

- Suggested Positions -

buy the 2013 Mar $65 call (DOV1316c65) current ask $2.00

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.7 million
Listed on November 17, 2012


Pharmacyclics Inc. - PCYC - close: 51.77 change: +1.33

Stop Loss: 48.75
Target(s): 56.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PCYC delivered what should have been considered a decent earnings report back in early November. Yet cautious comments from management about competition for some its cancer drugs sparked a sell-off. Now PCYC is seeing an oversold bounce. I suspect we could see PCY try and fill the gap before it rolls over again.

I do consider this a more aggressive, higher-risk trade. Anytime you trade a biotech stock it can be a high-risk trade since you never know when a negative headline could send the stock crashing. Yet on a short-term basis PCYC is bouncing.

I am suggesting small bullish positions at the open on Monday with a stop loss at $48.75. Our target is $56.50. More aggressive traders could aim for the $59-60 zone instead.

- Suggested *Small* Positions -

buy the Dec $55 call (PCYC1222L55) current ask $3.40

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on November 17, 2012