Mow Down Profits with Briggs & Stratton Calls

Ken Trester's Maximum Options is published weekly for options trading
investors. Recommended Fast Options Trade: Briggs & Stratton (NYSE: BGG) BGG
rallied sharply to $23 and has pulled back. But it should move higher if stocks
can resume their rally. Here is the best way to play more strength in Briggs &
Stratton … Buy the Briggs & Stratton (BGG) Jul 25 Call up to 50 cents ($50 per
contract). After taking the position, enter a good-til-cancelled contingent
order to sell this option if the stock hits its target price of $23.90. That
should give you an option price of about $1, for a 100% profit. Close this
position and cut losses if the stock closes below $21.50, when the option price
should be about 30 cents. The stock is currently trading at $22.27. The
computer-simulated probability of this option hitting its target price is 24%.
Find more option analysis and trading ideas at Options Trading Strategies .
Recommended Fast Options Trade: Cameco Corp (NYSE: CCJ) CCJ , a uranium
producer, fell sharply in March as nuclear concerns dominated the media
headlines. It is currently sitting on key support and could fall much lower if
that support fails to hold. Here is the best way to play more weakness in Cameco
Corp. … Buy the Cameco Corp (CCJ) Jun 25 Put up to 75 cents ($75 per
contract). After taking the position, enter a good-til-cancelled contingent
order to sell this option if the stock hits its target price of $25.10. That
should give you an option price of about $1.80, for a 140% profit. Close this
position and cut losses if the stock closes above $29.60, when the option price
should be about 50 cents. The stock is currently trading at $28.04. The
computer-simulated probability of this option hitting its target price is 20%.
** All of our short-term recommendations can be taken for up to three days after
they are recommended. Make sure the stock and option prices are close to where
they were when we made the recommendation. If after three days you still have
not gotten the position filled, cancel the order and wait for our new
recommendations, as the profit probabilities may no longer be valid. Action to
Take on Current Positions: Leap Wireless (NASDAQ: LEAP), Aflac (NYSE: AFL) Close
the LEAP May 16 Call and the AFL May 50 Put. The positions reached their
three-week maximum holding periods Thursday without hitting their target prices.
Action to Take on Current Position: Brunswick Corp (NYSE: BC) Close the BC May
29 Call. The stock closed below its stop price Thursday. Ken Trester is editor
of the popular Maximum Options program. Trester has been trading options since
the first exchanges opened in 1973 with a winning streak that goes back to 1984
with money-doubling average annual profits since 1990.