Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2009/06/21/a-fathers-day-gi…

I will like to present you a hamburger of a stock as my gift for Father’s Day. McDonald’s will be pissed at me but the stock is BKC (Burger King). The King Diamond system gave me this pick and I kind of like it even though the options premiums are not fat as I would like.

However, an examination of the stock chart gives me the following clues that this might be a good trade with a primary target of 20 dollars. Why 20 dollars? According to Tim O’Brien’s Timing the Trade book, stocks tend to gravitate to open gaps. There is an open gap that happened on April 13 to 14th from 19.78 to 22.61 that needs to be tested.

First Target: 19.78 - Second Target: 22.61 - Third Target: 23 (Top of the consolidation).

The trade setup is as follows: Buy the stock in multiples of a 100 shares and sell the 17.50 July call at 0.40 cents or better. Place a stop at 15.25. If you even want to be more aggressive with your stop, you can place it at 16.00 which is the bottom of the current trading range.

Happy… (Read the rest of this article at the following article source link for the full story)

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