In addition to tonight's new candidate, consider these stocks as possible trades:
HITK - shares displayed some relative strength today. Further strength might be a buy signal here. The trend of higher lows is bullish.
CBRL - this restaurant stock is consolidating sideways under resistance at $50.00. Look for a breakout.
NEW DIRECTIONAL CALL PLAYS
Varian Medical Sys. - VAR - close: 64.75 change: +0.33
Stop Loss: 62.80
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
VAR makes medical equipment and software. The stock has been consolidating sideways under resistance at the $65.00 level. Shares managed to show some relative strength today with a +0.5% gain. If the stock can breakout past resistance it should see a run towards the next level of resistance near $70.00.
I am suggesting a trigger to buy calls at $65.25 with a stop at $62.80. Our target is $69.75. FYI: The Point & Figure chart for VAR is bullish with a $89 target.
Trigger @ 65.25
- Suggested Positions -
buy the JAN $65 call (VAR1221A65) ask $2.50
Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 12, 2011