NEW DIRECTIONAL CALL PLAYS
Capella Education - CPLA - close: 72.55 change: +0.19 stop: 69.49
Why We Like It:
CPLA is a small-cap stock and shares look poised to breakout over key resistance at the $75.00 level. There's no guarantee that CPLA will breakout but the path of least resistance appears to be higher. I'm suggesting small positions now near $72.50 with a stop loss at $69.49. If CPLA does breakout over $75.00 we can choose to add to our positions. I do consider this an aggressive, higher-risk trade. More conservative traders might want to use a tighter stop (near $71.50) to limit their risk. Currently the Point & Figure chart is bullish with an $85 target. I'm setting our first target at $79.50.
I'm suggesting the December calls. My preference is the $75 strike.
BUY CALL DEC 75.00 CQX-LO open interest=367 current ask $1.20
Picked on November 24 at $ 72.55
Change since picked: + 0.00
Earnings Date 02/11/10 (unconfirmed)
Average Daily Volume = 126 thousand
Listed on November 24, 2009