NEW DIRECTIONAL CALL PLAYS

C.H.Robinson - CHRW - close: 54.66 change: +0.29 stop: 52.75

Why We Like It:
Some of the transports have been ignoring recent weakness in the market. CHRW is one of them and the stock appears to be coiling for a bullish breakout over resistance near $55.00. I am suggesting a trigger to buy calls at $55.35. If triggered our target is $59.50. I believe our biggest risk is an intraday spike over resistance that fails. If CHRW breaks out and then fails to close over $55.00 I would probably abandon ship early. Currently the Point & Figure chart is bullish with a $69.00 target.

Suggested Options:
I am suggesting the September calls.

BUY CALL SEP 55.00 CJQ-IK open interest= 956 current ask $1.95
BUY CALL SEP 60.00 CJQ-IL open interest=1304 current ask .40

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER 55.35
Change since picked:      + 0.00
Earnings Date           10/20/09 (unconfirmed)
Average Daily Volume =       1.7 million  
Listed on August 11, 2009         


NEW DIRECTIONAL PUT PLAYS

Editor's Note on Put ideas:

The banking stocks are correcting and I looked at BAP as a potential put candidate. The stock doesn't trade with much volume and option volume is even worse. I decided to pass but more aggressive traders may want to give it a look. I'd target a dip toward the June highs near $63.00-62.00.

New Plays

Apple Inc. - AAPL - close: 162.83 change: -1.89 stop: 167.51

Why We Like It:
I believe that AAPL is going to be one of the first stocks investors buy when the correction slows down. We'll be first in line to buy calls if AAPL does see a deep enough pull back. In the meantime I want to try and capture the correction. The stock is very overbought and the nearest support looks like it could be the $150-147 zone. I am suggesting put options now with a stop loss at $167.51. Our first target to take profits is at $156.00. Our second and final target to take profits is at $151.50. If AAPL near $150 we'll start looking at buying calls.

Suggested Options:
I'm suggesting the September puts.

BUY PUT SEP 160 APV-UL open interest=13777 current ask $4.90
BUY PUT SEP 155 APV-UK open interest= 4946 current ask $3.15
BUY PUT SEP 150 APV-UJ open interest=19480 current ask $1.96

Annotated Chart:

Picked on   August 11 at $162.83
Change since picked:      + 0.00
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =      17.1 million  
Listed on August 11, 2009         


Chevron Corp. - CVX - close: 67.94 change: -1.29 stop: 70.60

Why We Like It:
The rally in CVX is failing near the $70.00 level. Shares also have technical resistance at their exponential 200-dma. Today's decline looks like a new entry point to buy puts. We'll use a stop above the recent high. Our first target is $64.15. Our second target is $61.50.

Suggested Options:
I am suggesting the September puts.

BUY PUT SEP 70.00 CVX-UN open interest= 7774 current ask $4.00
BUY PUT SEP 65.00 CVX-UM open interest=14195 current ask $1.55

Annotated Chart:

Picked on   August 11 at $ 67.94
Change since picked:      + 0.00
Earnings Date           10/29/09 (unconfirmed)
Average Daily Volume =      10.7 million  
Listed on August 11, 2009         


Green Mtn Coffee - GMCR - close: 65.84 chg: -2.14 stop: 72.05

Why We Like It:
This one is for the really aggressive traders out there. GMCR has been killing the shorts for months. The short interest in this stock was almost 40% of the float. We don't know how many shorts are left but upward momentum is really topping out. The stock has failed three times near $72.00 and now the MACD has developed both a new sell signal and a bearish divergence with the price. This is a very aggressive bet that GMCR finally corrects. I suggest very small position sizes. We're going to use a very wide stop loss. Our first target to take some money off the table is $60.50. Our second target to exit completely is $55.50.

Suggested Options:
Use the September puts but use very small positions.

BUY PUT SEP 65.00 QGM-UM open interest=2417 current ask $4.70
BUY PUT SEP 60.00 QGM-UL open interest=1880 current ask $2.70

Annotated Chart:

Picked on   August 11 at $ 65.84
Change since picked:      + 0.00
Earnings Date           11/12/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on August 11, 2009