NEW DIRECTIONAL CALL PLAYS
Whole Foods Market, Inc. - WFM - close: 69.49 change: +0.56
Stop Loss: 67.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
High-end grocery retailer WFM was showing relative strength on Wednesday. Shares are testing resistance near $70.00. A breakout here could be followed by a quick run toward its 52-week highs near $74.00.
I am suggesting a trigger to open bullish positions at $70.25. If triggered we'll use a stop loss at $67.75. Our target is $74.00. More aggressive traders may want to aim higher.
FYI: The Point & Figure chart for WFM is bullish with an $85 target.
Trigger @ 70.25
- Suggested Positions -
buy the 2012Jan $70 call (WFM1221A70) ask $1.66
Entry on December xx at $ xx.xx
Earnings Date 02/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on December 28, 2011