NEW DIRECTIONAL CALL PLAYS
TORO Co. - TTC - close: 42.00 change: -0.44 stop: 40.90
Why We Like It:
TTC is known for its irrigation systems and turf maintenance equipment.
Shares of TTC are still in their long-term up trend off the 2009 lows. The recent correction has stalled and prior resistance is acting as new support. Aggressive traders could jump in now following today's intraday bounce. I want to see more follow through first. I'm suggesting a trigger to buy calls at $42.60. We'll use a stop at $40.90 but more conservative traders may want to cinch up their stops toward today's low (41.45). If triggered at $42.60 our is $45.90. We do not want to hold over the February earnings report.
FYI: I'm still concerned about a potential market correction in January so keep your positions small to reduce your exposure.
I wanted to buy February calls but March calls had more volume and open interest. I'm suggesting March options with a preference for the $45 strike.
BUY CALL MAR 45.00 TTC-CI open interest= 72 current ask $1.65
Entry on January xx at $ xx.xx <-- TRIGGER @ 42.60 (small positions)
Change since picked: + 0.00
Earnings Date 02/18/10 (unconfirmed)
Average Daily Volume = 289 thousand
Listed on January 05, 2010