Sara Lee Corp - SLE - close: 15.71 change: +0.24

Stop Loss: 14.70
Target(s): 17.00, 17.90
Current Option Gain/Loss: + 0.0%
Time Frame: 10 to 12 eeks
New Positions: Yes, see trigger

Company Description:
Each and every day, Sara Lee delights millions of consumers and customers around the world. The company has one of the world's best-loved and leading portfolios with its innovative and trusted food and beverage brands, including Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Sara Lee and Senseo. Collectively, our brands generate nearly $11 billion in annual net sales. Sara Lee has approximately 33,000 employees in its continuing operations worldwide. (source: company press release or website)

Why We Like It:
SLE looks poised to run after a month-long consolidation between the $15.00 and $15.50 levels. The stock displayed relative strength today with a breakout to a new two-year high and close over resistance at $15.50. SLE doesn't move super fast but the trend is up. I am suggesting bullish positions now but you don't have to rush into positions immediately. The action in the stock market looks like a possible short-term top. If you're patient we might get a better entry point in SLE closer to $15.25. Essentially I'm suggesting bullish positions on SLE in the $16.00-15.00 zone. FYI: the Point & Figure chart is suggesting a long-term bullish target of $32 for SLE.

Open Positions at current levels

Suggested Position: Buy SLE stock

- or -

Buy the 2011 April $15.00 calls (SLE1116D15) current ask $1.40

Annotated chart:

Entry on December 8 at $xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 7.6 million
Listed on December 7th, 2010