Bullish candidates were easy to find today but most of them are starting to look a little overbought. Here's a short list you'll want to keep an eye on:
CLB is challenging round-number resistance at $100. A dip near $96.00 might be a new bullish entry point.
DO is another oil service stock that is nearing resistance at $95.00. Readers can buy calls on a breakout.
LLL is a defense contractor that has broken resistance near $76.00 but appears to have additional resistance near $80.00. I'd consider calls on a dip at $76.00 or over $81.00.
SPW has broken out to new highs but looks over extended. Consider calls on a dip near $60 or $58.00 again.
NEW DIRECTIONAL CALL PLAYS
Alcon Inc. - ACL - close: 136.75 change: +1.32 stop: 129.49
Why We Like It:
ACL makes medical and surgical equipment and eye care products (like contacts) and the stock has been steadily marching higher. The bounce from the $133.50 level today looks like a new entry point to buy calls. I'm suggesting new positions now with a stop loss at $129.49. More conservative traders may want to consider a tighter stop in the $131-132 zone. Our first target is $142.50. Our second target is $148.00.
I'm suggesting the October calls. We want to use small positions as open interest is relatively small.
BUY CALL OCT 135 ACL-JG open interest= 59 current ask $5.20
BUY CALL OCT 140 ACL-JH open interest=105 current ask $2.65
BUY CALL OCT 145 ACL-JI open interest= 76 current ask $1.20
Picked on September 10 at $136.75
Change since picked: + 0.00
Earnings Date 10/21/09 (unconfirmed)
Average Daily Volume = 299 thousand
Listed on September 10, 2009