NEW DIRECTIONAL CALL PLAYS

Perrigo Co. - PRGO - close: 161.15 change: +0.64

Stop Loss: 159.00
Target(s): 169.50
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to March option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
PRGO is in the healthcare sector. The company makes over the counter and prescription drugs and related products. Shares have been volatile in recent weeks. The stock spiked lower to its 100-dma following its earnings report in early February. In its latest earnings report PRGO beat bottom line estimates by a wide margin but revenues were a miss. Guidance was relatively in-line with expectations.

The stock market's big bounce from its February lows has lifted PRGO back toward resistance at its January 2014 highs. A breakout here would be a new all-time high. I am suggesting small bullish positions if PRGO can trade at $162.50. If triggered our target is $169.50.

Trigger @ 162.50 *small positions*

- Suggested Positions -

Buy the MAR $165 call (PRGO1422C165) current ask $2.65

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 1.3 million
Listed on February 25, 2014