Vertex Pharma - VRTX - close: 39.36 change: +0.82 stop: 38.49

Why We Like It:
The DRG Drug index is one of the strongest sectors in the market these days. I want to add some exposure to the drug industry with a bullish trade on VRTX. The recent correction appears to be ending. I'm suggesting a trigger to buy calls at $40.25. We'll use a stop under last week's low. Our target to exit is at $44.25. My time frame is several weeks.

Suggested Options:
I'm suggesting the 2010 January call. More aggressive traders could try December calls. My preference is the $40 strike.

BUY CALL JAN 40.00 VQR-AH open interest=3673 current ask $1.85

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 40.25
Change since picked:       + 0.00
Earnings Date            02/09/10 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on  November 23, 2009