NEW BULLISH Plays

iShares Gold ETF - IAU - close: 17.03 change: +0.01

Stop Loss: 16.85
Target(s): 19.75*
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

Company Description

Why We Like It:
Gold's long-term trend is still up. Yet the price of gold has been consolidating in a very wide triangular pattern the last couple of months. Option traders might want to consider some sort of market neutral approach here but I suspect we'll see gold and the IAU breakout higher again.

We are suggesting a trigger for small bullish positions at $17.25. If triggered at $17.25 we'll set our multi-week target at $19.75. The 2011 highs near $18.50 could definitely prove to be resistance. We want to keep our position size small.

Trigger @ 17.25

Suggested Position: buy the IAU @ 17.25

- or -

buy the April $18 call (IAU1221D18) current ask $0.75

*final exit price will be adjusted as the trade progresses.

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 5.0 million
Listed on December 03, 2011


NVIDIA Corp. - NVDA - close: 15.72 change: -0.10

Stop Loss: 14.75
Target(s): 19.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks, or more
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of NVDA, a graphics chip maker, have been consolidating sideways under resistance at $16.00 for months. Shares have finally rebounded back to this resistance level. NVDA also has possible resistance at its simple 200-dma at $16.19. I am suggesting we use a trigger to open small bullish positions at $16.30 with a stop loss at $14.75.

We want to keep our position size small because NVDA can be a volatile stock.

Trigger @ 16.30

Suggested Position: buy NVDA stock @ 16.30

- or -

buy the 2012Jan $17.50 call (NVDA1221A17.5) current ask $0.48

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 18.5 million
Listed on December 03, 2011


NEW BEARISH Plays

Broadcom Corp. - BRCM - close: 29.99 change: -0.65

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BRCM is a semiconductor stock that has broken down from a major, multi-month sideways consolidation. Now the oversold bounce is failing at prior support. This looks like an entry point for bearish positions. I am suggesting new positions on Monday morning with a stop loss at $31.55. Our target is $26.00 although more aggressive traders could aim lower. FYI: The Point & Figure chart for BRCM is bearish with a $21.00 target.

Suggested Position: short BRCM stock @ the open

- or -

buy the 2012Jan $28 PUT (BRCM1221M28) current ask $1.06

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 8.2 million
Listed on December 03, 2011