Looking for stocks that did not break their bullish trend during the January correction.
NEW DIRECTIONAL CALL PLAYS
Teva Pharmaceutical - TEVA - close: 57.58 change: +0.92 stop: 54.95
Why We Like It:
Our OptionInvestor.com play list is heavily weighted toward bearish trades. My bias remains bearish until the S&P 500 can close over 1120 again. However, there are still stocks out there that are climbing. TEVA is one of them. Shares did see a correction from their January highs but TEVA did not break its up trend. Today's bounce looks like an entry point to buy calls. I would keep positions small. This isn't the best risk-reward ratio. More conservative traders may want to use a stop loss under last Friday's low, which was $55.88. This should be a short-term trade. TEVA reports earnings on Feb. 16th and we do not want to hold over the announcement.
Our short-term target to take profits is at $59.50. Our second target is $61.50.
I'm suggesting the February $57.50 calls. We will plan to exit before they expire.
BUY CALL FEB 57.50 TVQ1020B57.50 open interest=7403 current ask $1.16
Entry on February 02 at $ 57.58
Change since picked: + 0.00
Earnings Date 02/16/10 (confirmed)
Average Daily Volume = 6.0 million
Listed on February 02, 2010