CACI International - CACI - close: 62.33
CACI is an information technology company that services the federal government. In today's Internet age, providing IT for the government is big business. The stock has been consistently climbing higher for months.
We have had CACI on our watch list with plans to buy call LEAPS on a dip but
we have been unable to catch a dip at the right time. When the market sold off hard in the middle of March, shares of CACI pulled back but the selling wasn't that bad. Now shares have broken through resistance near the $60.00 level and traders bought the dip again on Friday.
I am suggesting we launch small bullish positions now given CACI's recent strength. I do consider this a much more aggressive entry point and hopefully if we keep our position size small we can limit our risk. The March low was close to $57.00. I'm listing our stop loss at $56.75. Our first upside target is $69.00. CACI doesn't have LEAPS so we'll have to use the 2011 September calls.
- Suggested (small) Positions -
Apr 4, 2011 - entry price on CACI @ --.--, option @ -.--
symbol: CACI1117I65 2011 SEP $65 call - current bid/ask $ 3.00/ 3.30
Chart of CACI:
Current Target: $69.00
Current Stop loss: 56.75
Play Entered on: 04/04/11
Originally listed on the Watch List: 02/12/11