NEW DIRECTIONAL CALL PLAYS

Kansas City Southern - KSU - close: 107.02 change: +0.93

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The transportation sector continues to show relative strength with the Dow Jones Transportation average hitting new all-time highs today. Helping drive those gains is the railroad industry. Shares of KSU are trading near record highs. The stock also has a bullish trend of higher lows. On a short-term basis KSU looks poised to breakout past resistance in the $107.25 area.

I am suggesting small bullish positions if KSU can trade at $107.50. If triggered our target is $114.00. We want to keep our position size small to limit our risk since the transportation sector and KSU are arguably overbought at current levels.

Trigger @ 107.50

- Suggested Positions -

buy the Apr $110 call (KSU1320D110) current ask $2.40

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 984 thousand
Listed on March 13, 2012