Editor's Note:

If you're looking for a bearish candidate, I would keep an eye on TRMB. Shares look like they might correct lower toward the $55.00 region.



NEW DIRECTIONAL CALL PLAYS

Canadian Pacific Railway - CP - close: 118.31 change: +1.42

Stop Loss: 116.60
Target(s): 124.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Railroad stocks have been a large part of the transport's strength. Shares of CP did not see that much profit taking and its trend still looks positive. Right now shares of CP are hovering below resistance at the $120 level. I am suggesting a trigger to buy calls at $120.25. Our short-term target is $124.75. More aggressive traders could aim higher.

FYI: On Friday CP announced a quarterly dividend of 35 cents (Canadian$) payable on April 29, 2013 to shareholders of record on March 28th.

Trigger @ 120.25

- Suggested Positions -

buy the Mar $120 call (MAR1316c120) current ask $1.65

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 795 thousand
Listed on February 23, 2012


McDonald's - MCD - close: 95.25 change: +1.11

Stop Loss: 93.25
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
About two weeks ago MCD said worldwide same-store sales were down almost 2% in January. Yet the news has failed to scare off investors. After a mild two-week correction lower traders are buying the dip and MCD appears to be breaking out from its recent consolidation.

I am suggesting small bullish positions at the open on Monday morning. Our multi-week target is $99.75. FYI: The Point & Figure chart for MCD is bullish with a $115 target.

- Suggested *Small* Positions -

buy the Apr $95 call (MCD1320d95) current ask $1.66

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 4.9 million
Listed on February 23, 2012