NEW BULLISH Plays

Trinity Industries - TRN - close: 29.77 change: +1.40

Stop Loss: 28.75
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TRN sells equipment and railcars to the railroad industry. The stock has been consolidating under significant resistance near $30.00 and its 200-dma for days. A breakout could signal a run towards the stock's highs near $37. I am suggesting we use a trigger to open bullish positions at $30.55. If triggered we'll aim for $34.75. More aggressive traders could aim higher.

Trigger @ $30.55

Suggested Position: buy TRN stock @ 30.55

- or -

buy the Jan $30 call (TRN1221A30) ask $1.90

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on December 10, 2011


NEW BEARISH Plays

Ctrip.com Intl. - CTRP - close: 23.20 change: +0.14

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CTRP is an online travel service focus on China. The last couple of months have been pretty ugly for the stock, especially following its latest earnings report in the middle of November. The company missed expectations and guided lower. Shares of CTRP did not fully participate in the market's widespread bounce on Friday.

I do consider this an aggressive trade because CTRP is arguably still short-term oversold here six-days of losses (prior to Friday's bounce). We will use a stop loss at $25.05. You may want to use a tighter stop loss. We are aiming for $20.25. FYI: The Point & Figure chart for CTRP is bearish with a $9.00 target.

Note: We want to keep our position size small to limit our risk. CTRP can be a volatile stock and short interest is nearing 10% of the float.

*Small Positions*

Suggested Position: short CTRP stock @ the open

- or -

buy the 2012Jan $22.50 PUT (CTRP1221M22.5) ask $1.45

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/13/12 (unconfirmed)
Average Daily Volume = 5.2 million
Listed on December 10, 2011