Call Options on PKG on 7/26/2012

It pays to know how to box. Packaging Corporation of America (PCA) -- the fifth largest in the US -- produces 2-plus million tons of containerboard annually, most of which is converted into corrugated boxes. PCA mills also churn out some 1.5 million tons of kraft linerboard and nearly a million tons of semi-chemical corrugating medium. Its corrugated packaging includes shipping containers for manufactured goods, retail boxes and displays, and wax-coated boxes and meat boxes for agricultural use. The company operates four containerboard mills and about five dozen corrugated products plants in the US.

we are bullish on this name for the following reason:

1. Shares are expected to be featured by a major stock advisory service. The new demand for shares should push prices to new all time highs.

Trade: Buy 1 AUG $30 Call.

Trade Buy 1 January $50.00 Call at $1.75 For a net debit of $1.75 Profit/Loss Analysis Breakeven at $51.75 Maximum profit is unbounded Maximum loss is ($175.00) at strike of $50.00 Closing Summary Sold 1 January $50.00 Call at $2.50

Position closed on 8/17/2012 at price of $2.50 with a 42.86% gain in 21 days.

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