If you took my recommendation on Hilton Worldwide (HLT) to buy the HLT April 29 calls last week, you know they are up nicely for you, and I had my Momentum Options members take partial profits at a buck. From our entry point, we’re up about 160% on the first half and are looking at $2.00 to exit the rest. There’s another name I brought to you earlier in the year that I want to call to your attention again: Brocade Communications Systems (BRCD).

I originally recommended BRCD as a Trade of the Day in January, and the BRCD April 12 calls are still around the same levels from my initial alert.

If you haven’t taken a position yet, there’s still time, but not much. BRCD is at multi-year highs, and its earnings are due this Thursday after the market closes. Wall Street is looking for a profit of $0.24 a share on revenue just south of $570 million. The spread on the high/low estimate is $0.23-$0.25. This could mean a penny beat or miss.

During the past four quarters, BRCD has topped or matched expectations by $0.01, $0.04, $0.00 and $0.04, respectively. The high estimate on revenues is $573 million, so I’d like to see an earnings beat with sales north of $575 million. Raised guidance for the current quarter would also be nice.

However, an earnings miss could have a negative impact on the stock. But I like the stock’s fundamentals and technicals and expect it to move up on earnings.

Additionally, near-term support is at $12.25-$12, with additional help at $11.75 and the 50-day moving average. Resistance is at $12.75-$13.

I’m reiterating my recommendation to buy the BRCD April 12 calls at current levels. They closed Tuesday at 86 cents.

My target for the calls is $1.60, or just about 100% if you get in at those levels. I don’t have a stop loss in place, as I will be holding these calls through Friday’s open at least to see how they react to BRCD’s earnings report.

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