Sourcefire, Inc. - FIRE - close: 59.43 change: +1.03

Stop Loss: 57.95
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to the earnings report on July 29th
New Positions: Yes, see below

Company Description

Why We Like It:
FIRE is in the software industry. They provide cyber security solutions. Traders have been buying the dips these last two weeks and now shares of FIRE are testing major resistance at the $60.00 level. A breakout here could spark a short squeeze. The most recent data listed short interest at 18% of the 30.0 million-share float.

I am suggesting a trigger to buy calls at $60.25. If triggered our target is $64.75. Please note that we do not want to hold over the earnings report on July 29th. FYI: The Point & Figure chart for FIRE is bullish with a long-term $74 target.

Trigger @ 60.25

- Suggested Positions -

buy the Aug $65 call (FIRE1317H65) current ask $1.85

Annotated Chart:

Weekly Chart:

Entry on July -- at $---.--
Average Daily Volume = 431 thousand
Listed on July 17, 2013