NEW DIRECTIONAL CALL PLAYS
State Street (Bank) STT - close: 54.06 change: +2.79 stop: 48.90
Why We Like It:
I mentioned STT last night in my editor's note as a bullish candidate should the financials continue to lead the market higher. Sure enough the stock breaks higher and rallies more than 5%. We want to jump on the bandwagon. However, we'll get a better price in the options if we wait for a dip. The plan is to buy calls when STT dips back to $52.50. We'll use a stop under the recent low. Our first target is $55.00. Our second target is $59.50. Currently the Point & Figure chart is bullish with a $62 target.
I am suggesting the September calls.
BUY CALL SEP 50.00 SPJ-IJ open interest=2704 current ask $5.30
BUY CALL SEP 55.00 SPJ-IK open interest=8108 current ask $2.25
Picked on August xx at $ xx.xx <-- TRIGGER 52.50
Change since picked: + 0.00
Earnings Date 10/13/09 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on August 19, 2009