NEW BULLISH Plays

Theravance Inc. - THRX - close: 27.41 change: +0.63

Stop Loss: 25.90
Target(s): 31.00
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 23, 2011
Time Frame: 4 to 8 weeks
Average Daily Volume = 492 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
THRX is a biotech firm and the stock could see a short squeeze. The most recent data listed short interest at 22% of the 52.6 million-share float. Given the current short-term trend of higher lows the shorts are probably nervous.

Today's high was $27.53. I am suggesting a trigger to open small bullish positions at $27.65. Our target is $31.00.

Trigger @ 27.65 *small positions*

Suggested Position: buy THRX stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Oct $30 call (THRX1220j30) current ask $1.45

Annotated chart:



NEW BEARISH Plays

Dolby Labs - DLB - close: 33.64 change: -0.95

Stop Loss: 35.11
Target(s): 30.15
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 23, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 992 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
DLB is a technology company for the entertainment industry. The stock just reversed with a failed rally under resistance at $36 three days ago. Now DLB is back under potential support in the $35-34 area.

We want to hop on board and launch small bearish positions at the open tomorrow.

*Small Positions*

Suggested Position: short DLB stock @ (the open)

- (or for more adventurous traders, try this option) -

buy the Sep $35 PUT (DLB1222u35) current ask $2.10

Annotated chart: