NEW DIRECTIONAL CALL PLAYS
Mead Johson Nutrition - MJN - close: 84.26 change: +1.00
Stop Loss: 82.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
MJN makes infant formula and related products. The stock has been ignoring the market's weakness the last two days. Shares are bouncing off technical support near their 50-dma. MJN has broken the two-week bearish trend of lower highs. Shares could be poised for another run higher.
I am suggesting a trigger to buy calls at $85.05. We'll use a stop loss at $82.25, just under Tuesday's low. Our target is $89.25.
Trigger @ 85.05
- Suggested Positions -
buy the Jun $85 call (MJN1216F85) current ask $1.95
Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on May 16, 2012