10/16/2013   WED

 United Technologies Corp.                          NYSE: UTX             105.80

Anticipated EPS is around 1.53 down from last quarter but well ahead of last year

UTX has been one of the leaders in the Dow Jones Transports and is trading at a slightly high P/E ratio of 19.5 times earnings. I would like to see the stock rally into the $107.50 to $108.50 and look at the Jan 100p/85p  +1/-1 for around 1.75 debit or better. This gives the time for a pullback going into the New Year. Even the May Monthly options are a decent speculation at the same volatility levels which is at a 5% discount to the front month options. It has also had a run from the Lo of $37.40 in Mar of 2009 through Sept of this year topping at $112.46. Time and low volatility on a stock that has had a roughly 300% increase present an interesting opportunity on one of the Transport’s top performers.

$175/$1,325.00 Risk /Reward

IV 24.6% in January Monthly options

Open Int. (est.)                strike         Jan 14 Monthly (212)

75                              1,700

77.5                              875

80                              2,250

82.5                          1,025

85                              3,100

87.5                          1,800

90                              4,600

92.5                          1,970

95                              3,050

97.5                          1,650

100                           7,600

105                          9,530

110                          5,460

115                          2,200

Fiscal Quarter End	Date Reported	Earnings Per Share	Consensus EPS* Forecast
Jun2013	07/23/2013	1.65	1.56
Mar2013	04/23/2013	1.28	1.3
Dec2012	01/23/2013	1.29	1.02
Sep2012	10/23/2012	1.37	1.17

*Disclaimer: This is not a recommendation. All trading entails risk. Anyone employing any strategies and having limited knowledge of options trading should consult with a FINRA licensed professional.