NEW DIRECTIONAL CALL PLAYS

Gold Miner ETF - GDX - close: 35.93 change: +0.79 stop: 33.99

Why We Like It:
The gold-miner ETF is bouncing from a multi-month trendline of support and the dollar looks poised to move lower. If the dollar does decline then gold prices should rise and boost the miners. Use a tight stop under today's low. Our first target is $39.00. This should be a quick play that only lasts a few days.

Suggested Options:
I'm suggesting the August calls even though the GDX may hit our target before the week is over. Strikes are available at $1.00 increments.

BUY CALL AUG 35.00 GBH-HI open interest= 182 current ask $2.85
BUY CALL AUG 38.00 GDX-HL open interest=2003 current ask $1.55
BUY CALL AUG 40.00 GDX-HN open interest=5356 current ask $1.00

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =       6.8 million  
Listed on  July 13, 2009         


O'Reilly Automotive - ORLY - close: 40.00 change: +0.62 stop: 38.49

Why We Like It:
ORLY is a bullish relative strength play. The stock has been ignoring recent market weakness and is now trading near its all-time highs. Shares broke out from their consolidation pattern last week. Today traders bought the dip at the 10-dma. I'm suggesting call positions now with a stop at $38.49. Our first target is $44.00.

Suggested Options:
We are suggesting the August calls but will plan to exit ahead of the July 29th earnings report.

BUY CALL AUG 40.00 OQR-HH open interest=2285 current ask $2.20
BUY CALL AUG 45.00 OQR-HI open interest= 432 current ask .45

Annotated Chart:

Picked on     July 13 at $ 40.00
Change since picked:      + 0.00
Earnings Date           07/29/09 (confirmed)
Average Daily Volume =       1.9 million  
Listed on  July 13, 2009