NEW DIRECTIONAL CALL PLAYS
3M Company - MMM - close: 134.06 change: +1.64
Stop Loss: 131.40
Target(s): to be determined.
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: Yes, see below
Why We Like It:
MMM is in the industrial goods sector. They consider themselves a diversified technology company with several divisions: industrials, safety and graphics, electronics and energy, healthcare and more.
The stock is in a long-term up trend, hitting new record highs back in December. Since then MMM has been recovered from a correction to its 150-dma near $123.60 back on February 3rd. Now shares look poised to move higher with its recent breakout past a three-month trend line of lower highs (see daily chart).
Right now the market is worried about a slowing Chinese economy. Yet MMM recently said they expect their sales in China to run at +15% a year for the next five years compared to about +5% for the rest of the world.
Today's high was $134.53. I am suggesting a trigger to buy calls at $134.65. More conservative traders may want to wait for a rally past its late February high of $135.20 before initiating positions. We are not setting an exit target tonight but short-term traders could aim for the $140 high.
Trigger @ $134.65
- Suggested Positions -
Buy the May $135 call (MMM1417E135) current ask $2.86
Entry on March -- at $---.--
Average Daily Volume = 3.0 million
Listed on March 25, 2014