Lam Research - LRCX - close: 36.71 change: +0.66

Stop Loss: 34.75
Target(s): 39.75
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LRCX sold off sharply a few days ago on news it was buying Novellus (NVLS) in an all stock deal worth $3.3 billion. LRCX managed to find support near its 2011 lows in the $35.00 area. Now it's seeing a bounce.

Buying a bounce from significant support looks like a good spot to open bullish positions. I am suggesting we open small bullish positions tomorrow morning but only if both LRCX and the S&P 500 open positive. We'll use a stop loss under this week's low. Our target is $39.75.

*See Entry Details Above* (small positions)

Suggested Position: buy LRCX stock @ the open

- or -

buy the 2012Jan $38 call (LRCX1221A38) ask $0.85

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on December 21, 2011