NEW DIRECTIONAL CALL PLAYS
Trina Solar - TSL - close: 29.97 change: +0.74 stop: 26.69
Why We Like It:
I am going to repeat the same warning I issued last night. This is a dangerous market to be opening new bullish positions. Stocks are widely overbought and way overdue for some sort of correction. The problem with shorting stocks in this market is that stocks can always get more overbought. We're going to join the upward trend with a new bullish candidate in TSL but we need to use smaller than normal position sizes (1/2 to 1/4 the norm) because of our aggressive entry point.
Furthermore I am labeling this an aggressive play because TSL can be a volatile stock and the closest level of possible support is $27.00 and Friday's low at $26.71. I am suggesting calls here at current levels or on a dip near $29.00. Our first target is $34.00.
This is a short-term trade. We want to use the August calls. August options expire in less than three weeks but we'll exit long before then.
BUY CALL AUG 30.00 TSL-HF open interest=4761 current ask $2.15
BUY CALL AUG 35.00 TSL-HG open interest=2621 current ask .65
Picked on August 04 at $ 29.97
Change since picked: + 0.00
Earnings Date 08/18/09 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 04, 2009