NEW DIRECTIONAL CALL PLAYS

Bunge Limited - BG - close: 61.84 change: +0.82 stop: 58.49

Why We Like It:
BG operates three business: food, fertilizer and its agribusiness, which sells commodities. If the global economy is truly improving then BG's up trend should continue. Traders bought the dip at its rising 50-dma last week. Short-term the stock has resistance in the $62.25-62.50 zone. I'm suggesting readers buy calls at $62.55. If triggered our first target is $67.45. Our second target is $69.95. More aggressive traders may want to aim for the $74-75 zone but we plan to exit ahead of the late July earnings report.

Suggested Options:
July calls have more open interest but earnings are July 23rd (unconfirmed). I'm suggesting the August calls.

BUY CALL AUG 60.00 BGW-HL open interest= 184 current ask $5.60
BUY CALL AUG 65.00 BGW-HM open interest= 595 current ask $3.20

Annotated Chart:

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.7 million  
Listed on  June 27, 2009         


NEW DIRECTIONAL PUT PLAYS

AutoZone Inc. - AZO - close: 149.85 change: -2.24 stop: 152.25

Why We Like It:
AZO has been slowly withering lower for weeks. The trend of lower highs is starting to accelerate. Last week the bounce on Thursday failed at $152.00. This looks like a lower-risk entry point to buy puts with a tight stop. Our target is $141.00. The Point & Figure chart is forecasting a $134 target.

Suggested Options:
I am suggesting the July puts since stocks fall faster than they climb. Readers may want to consider August puts.

BUY PUT JUL 150 AZO-SJ open interest=1292 current ask $4.20
BUY PUT JUL 145 AZO-SI open interest=1800 current ask $2.20
BUY PUT JUL 140 AZO-SH open interest=1238 current ask $1.05

Annotated Chart:

Picked on     June 27 at $149.85
Change since picked:      + 0.00
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 27, 2009