New Directional Call Play – SHW
Sherwin-Williams Co. – SHW – close: 132.82 change: -0.17
Stop Loss: 129.90
Target(s): 139.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the July 19th earnings report
New Positions: Yes, see below
Company Description
Why We Like It:
The market has seen some significant moves in the second quarter. SHW has managed to shrug off most of the market’s gyrations as it maintains its longer-term bullish trend. Granted the stock has been consolidating sideways under resistance in the $133-134 zone the last few weeks but it’s been building the pattern of higher lows. SHW looks poised to breakout to new highs soon.
I am suggesting a trigger to buy calls at $134.10. We’ll use a stop loss at $129.90. Once triggered we’ll likely move the stop loss closer to $131.25. Our target is $139.75. However, we’ll plan on exiting prior to the July 19th earnings report.
Trigger @ 134.10
- Suggested Positions -
buy the Jul $135 call (SHW1221G135) current ask $2.40
- or -
buy the Aug $135 call (SHW1218H135) current ask $3.80
Annotated Chart:
Entry on July xx at $ xx.xx
Earnings Date 07/19/12 (confirmed)
Average Daily Volume = 1.2 million
Listed on July 07, 2012
— Option Investor.com
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