Despite the broader market’s sag Tuesday, big-cap new highs were very defensive, led by Unilever (NYSE:UN), General Mills (NYSE:GIS), Kellogg (NYSE:K) and Con-Agra (NYSE:CAG), though a couple of more aggressive stocks that crept into the list were resurgent fast food giant Yum Brands (NYSE:YUM) and British mobile chip maker ARM Holdings (NASDAQ:ARMH).
Another big British name, a company with a whopping $123 billion market capital, stands out for me now as a bullish bet. Vodaphone (NYSE:VOD), the UK-based telecommunications provider, pulled back during the past four months to the $25 level where it has found firm footing in the past year.
It has bounced off this level by $2.50 to $5.00 in December 2011, March 2012 and June 2012. I suspect we will see this again, so take advantage of the seasonal strength.
Buy the VOD Jan 25 Calls at 75 cents with a limit order.
The calls for VOD are very, very cheap, which leaves a bigger profit margin for you.