Monday, September 26, 2011

Use Call Options for a Dollar Tree Bounceback

The market experienced a tremendous selloff last week, which automatically
makes some traders think of bearish strategies. There are still strong bullish
stock candidates out there it just may take more time to filter them out.
Dollar Tree (NASDAQ: DLTR ) looks like a strong play for playing bullish call
options. It's a pretty sound fundamental stock, and the retailer's return on
equity has improved in the past five years. Technically, the stock has been in a
nice uptrend for most of 2011, and it managed to go higher when the market sold
off last week, which shows some strength. The area of support to watch is $74.
If DLTR moves much below that support level, the trade can be exited. Its
previous high was right around $78, which it should have no trouble moving
above. Buying the November call will give

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