Top Takes From RealMoney

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4. Slow Earnings Week
By Timothy Collins
2:07 p.m. EST

Given that this is a holiday shortened week, I will tend to keep my plays small, generally half my normal size. Today, I am only looking at three plays.

Analog Devices (ADI) reports today after the bell, and I am taking a position in the Dec 27.50 calls around 1.15. My upside target is around 29.50 on a beat and guide higher. If they disappoint, I don't see them sinking any further than 26.00 per share.

American Eagle Outfitters (AEO) has been beaten down mercilessly. It seems as if downside is priced in here. I am nibbling on some Jan 15 calls at .90 or .95. For a little higher risk/reward, the Dec 15 calls are hanging around .70; however, I am going to opt for more time.

Citi Trends (CTRN) looks like it could move to $30 on the upside or $25 on the downside. Me, I think downside. I am looking to short shares around 27.60.

Long ADI, AEO; short CTRN.

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5. Verizon Tops Dow
By Gary Morrow
2:58 p.m. EST

Verizon (VZ) is the top percentage gainer in the DJIA today. Verizon is just edging out Chevron (CVX) at the top of the list with an hour of trading left. The Dow is again enjoying a broad rally today, with only two members not participating.

VZ Daily (NYSE) - Verizon Source: TradeStation

While many of the top gainers this morning have come in a bit since the first-hour surge, Verizon has continued to build on its very strong gap higher open. Its 2.8% gain has lifted it well above its 200-day moving average while leaving behind a solid short-term base. Today's action could be the first stage of a significant breakout as Verizon continues to move away from a 12-week bearish channel.

Volume over the past two weeks has been very light, but I expect this to change as the stock edges higher. A volume surge this week will confirm that breakout and set the stock up for a run back up to its April highs of $33.00.

Long VZ.

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