Jos. A Bank Clothiers - JOSB - close: 51.57 change: -0.17

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
Bulls may want to keep an eye on JOSB. The stock has huge short interest and a breakout to another high could spark a short squeeze. Currently JOSB is consolidating sideways in its $49-52.50 trading range. I am suggesting we buy calls on a breakout at $52.75. If triggered our target is $59.50.

FYI: The most recent data listed short interest in JOSB at more than 21% of the small 27.3 million-share float. Together the increase the risk of a short squeeze.

Trigger @ $52.75

- Suggested Positions -

Buy the May $55 calls (JOSB1121E55)

- or -

Buy the June $55 calls (JOSB1118F55)

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume = 510 thousand
Listed on April 25th, 2011