Eastman Chemical Co. - EMN - close: 93.68 change: +0.36

Stop Loss: 90.75
Target(s): 99.75, 104.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Company Description
Eastman’s chemicals, fibers and plastics are used as key ingredients in products that people use every day. Approximately 10,000 Eastman employees around the world blend technical expertise and innovation to deliver practical solutions. The company is committed to finding sustainable business opportunities within the diverse markets and geographies it serves. A global company headquartered in Kingsport, Tenn., USA, Eastman had 2010 sales of $5.8 billion. (source: company press release or website)

Why We Like It:
Chemical stocks have been trending higher. Shares of EMN have spent the last four weeks digesting its previous gains with a trading range in the $94-90 zone. Now EMN looks poised to breakout. The current intraday high is $94.42. I am suggesting we buy calls at $94.60. If triggered our targets are $99.75 and $104.00. Expect the $100.00 level to initially act as overhead resistance. The Point & Figure chart for EMN is bullish with a $133 target.

Trigger @ 94.60

- Suggested Positions -

Buy the March $95 calls (EMN1119C95) current ask $2.20

Annotated Chart:

Entry on February xxth at $ xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 946 thousand
Listed on February 14th, 2010