BJ's Restaurants, Inc. - BJRI - close: 55.51 change: +1.78

Stop Loss: 53.15
Target(s): 59.50
Current Option Gain/Loss: + 0.0%
Time Frame: about one week
New Positions: Yes, see below

Company Description

Why We Like It:
BJRI is a casual dining franchise. The stock has a small float and a high amount of short interest. If the market bounces this stock could see another short squeeze. The most recent data listed short interest at 21% of the 24 million-share float.

I am listing this as an aggressive, higher-risk trade since the stock market looks a little vulnerable here. Please note that we only want to launch positions if the S&P 500 is positive tomorrow morning. If the S&P 500 opens negative we do not want to launch new plays here.

I am suggesting we limit our risk with small positions. The plan is to buy calls now with a stop loss at $53.15. Our target is $59.50. However, we do not want to hold over the Thursday, July 21st earnings report.

- Suggested (small) Positions -

buy the AUG $55 call (BJRI1120H55) current ask $2.95

Annotated Chart:

Entry on July 14 at $ xx.xx if S&P 500 is positive
Earnings Date 07/21/11 (confirmed)
Average Daily Volume = 245 thousand
Listed on July 13, 2011