NEW BULLISH Plays

Avis Budget Group, Inc. - CAR - close: 40.68 change: +0.94

Stop Loss: 39.40
Target(s): 45.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 14, 2014
Time Frame: Exit PRIOR to earnings in mid February
Average Daily Volume = 1.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
CAR is in the services sector. The company provides car and truck rentals around the world under its Avis and Budget brand names. The stock has seen significant momentum over the last couple of months but the rally stalled near $40 in January. Now after two weeks of digesting gains and consolidating sideways CAR looks poised to breakout higher.

I am suggesting a trigger to open bullish positions at $40.85. If triggered our target is $45.00.

Trigger @ 40.85

Suggested Position: buy CAR stock @ (trigger)

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

Buy the Feb $40 call (CAR1422B40) current ask $2.35

Annotated chart:



Pandora Media - P - close: 34.13 change: +1.60

Stop Loss: 32.65
Target(s): 39.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 14, 2014
Time Frame: exit PRIOR to earnings on February 5th
Average Daily Volume = 9.6 million
New Positions: Yes, see below

Company Description

Why We Like It:
Pandora is in the services sector. The company provides an online Internet radio service with over 175 million registered users. The stock shot higher in early January after announcing its latest metrics with Pandora gaining market share. Part of the rally was potentially short covering since the most recent data listed short interest at 18% of the 154 million share float. Additional gains could spark more short covering.

Currently Pandora is hovering below what looks like short-term resistance near $34.50. I am suggesting a trigger to open bullish positions at $34.55. It is possible that the $35.00 level could be round-number resistance so readers might want to wait for a breakout above $35.00 instead as an alternative entry point. If we are triggered at $34.55 our target is $39.50. However, we will plan on exiting prior to Pandora's earnings report on February 5th.

Trigger @ 34.55

Suggested Position: buy P stock @ (trigger)

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

Buy the Feb $35 call (P1422B35) current ask $2.34

Annotated chart: