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The Best Call Options to Buy on 3 Breakout Stocks |
August 20, 2009 By John Lansing, Editor, Parabolic Options |


John Lansing
John Lansing is a longtime professional technical analyst, trader and founder of Trending123 and Parabolic Options. John spends countless hours tracking all of the stock market sectors and sub-sectors to find winning trades for investors like you.
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Currently, I see three stocks with increased buying pressure that are presenting great trading opportunities.
The pattern these three stocks are all in is called an ascending triangle.
In technical analysis, triangles appear to reflect a balance of forces, causing a sideways movement in the stock that is usually associated with decreasing volume and volatility.
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The ascending triangle (also called an ascending right triangle) is a bullish indicator. It is characterized by a rally to a new high, followed by a pullback to an intermediate support level, then a second rally to test the first peak, followed by a second decline to a level higher than the intermediate-term support level and, finally, a rally to fresh new highs on strong volume.
Take a look at each of the charts below, and I'll tell you the best call options to take advantage of these bullish patterns.
Breakout Stock #1: Tetra Tech (TTEK)
Tetra Tech (TTEK) is breaking out to new all-time highs.
Buy the TTEK Dec 35 Calls (TQILG) for $1.50 or less with a target of $4 or higher.

Breakout Stock #2: Cerner Corp. (CERN)
Cerner Corp. (CERN) is also breaking out to new all-time highs.
Buy the CERN Dec 75 Calls (CQNLO) for $2.50 or less with a target of $6 or higher.

Breakout Stock #3: Express Scripts (ESRX)
I fully anticipate Express Scripts (ESRX) to break out to new all-time highs in the coming weeks.
Buy the ESRX Jan 80 Calls (XTQAP) for $2.50 or less with a target of $6 or higher.

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