NEW BULLISH Plays

BlackBerry Limited - BBRY - close: 10.34 change: +0.15

Stop Loss: 9.95
Target(s): 12.40
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 29.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
BBRY appears to have lost the smartphone race to rivals Apple's iOS and Google's Android operating systems, at least in the U.S. Now Wall Street is speculating on whether or not BBRY is a takeover target for someone who wants to try and compete in the smartphone market or someone who just wants BBRY's valuable patents and encryption technology.

The stock spent the last week consolidating sideways in the $10.00-10.50 zone. We're expecting shares to breakout higher again. Tonight we're suggesting a trigger to launch bullish positions at $10.45. More conservative traders might want to wait for BBRY to trade above its August 20th high of $10.54 or above its simple 50-dma (currently $10.56) before initiating positions.

If the newsletter is triggered at $10.45 we will aim for the $12.40 level. This is a multi-week, potentially multi-month trade.

Trigger @ 10.45

Suggested Position: buy BBRY stock @ (trigger)

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

Buy the 2014 Jan $12 call (BBRY1418a12) current ask $0.90

Annotated chart:



J2 Global, Inc. - JCOM - close: 50.72 change: +0.49

Stop Loss: 49.40
Target(s): 57.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 339 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
JCOM is a technology company that runs two segments: a business cloud services business and a digital media business. The stock rallied to new all-time highs following its recent earnings report. Since then there has been a relatively mild round of profit taking. Traders have started buying the dips near the $50 area. Friday saw JCOM testing short-term resistance at its 10-dma.

If JCOM resumes its up trend the stock should see some short covering. The most recent data listed short interest at 35% of the 41.6 million share float.

I am suggesting a trigger to open bullish positions at $51.00. If triggered our target is $57.50.

Trigger @ 51.00

Suggested Position: buy JCOM stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Darden Restaurants - DRI - close: 47.01 change: -0.26

Stop Loss: 48.25
Target(s): 44.25
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 24, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
Retail stocks have been getting crushed on disappointing earnings and sales forecasts as they warn about a slowing consumer. Now Wall Street is worried about slowing consumer spending and the restaurant industry. According to Bloomberg sales at restuarants in the U.S. have been slowing down the last couple of months (June and July). Current estimates suggest August will be better than July it has still been a slow month. The story behind these numbers is suggesting that Americans are suffering from higher taxes and higher gasoline prices, which is putting pressure on discretionary spending. The money they do spend seems to be going toward electronics, housing, and new cars.

Shares of DRI have been in a bearish trend since they produced a reversal in June. Now the stock has just recently broken down below support near $48.00. The next level of support should be $44.00. We are suggesting bearish positions now (at the open on Monday) with a target at $44.25.

Suggested Position: short DRI stock @ (the open)

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

buy the Oct $45 PUT (DRI1319v45) current ask $1.05

Annotated chart: