NEW DIRECTIONAL CALL PLAYS

iShares Financials - IYF - close: 49.36 change: -2.43 stop: 44.90

Why We Like It:
The financials are what led the market higher and today they led the market lower. When the market bounces again there will be another flood back into the banking stocks. I'm suggesting we buy calls on the IYF at $47.00 (or the $47.00-46.00 zone). If triggered our first target is $51.50. Our second target is $54.50.

Suggested Options:
Options are available at $1.00 increments. I'm suggesting the October calls. Trigger @ 47.00.

BUY CALL OCT 45.00 IYI-JS open interest=  0  current ask $5.50
BUY CALL OCT 50.00 IYF-JX open interest= 29  current ask $2.30

Annotated Chart:

Picked on September xx at $ xx.xx <-- TRIGGER @ 47.00
Change since picked:       + 0.00
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


NEW DIRECTIONAL PUT PLAYS

Apollo Group - APOL - close: 63.63 chg: -1.21 stop: 66.55

Why We Like It:
APOL has been under performing the market for weeks. Shares have developed a top and are now beginning to breakdown. I'm suggesting puts here with the stock under $65.00. Our first target to take profits is $57.50. Currently the Point & Figure chart is bearish with a $56 target.

Suggested Options:
This could be a quick play so I'm suggesting the September puts, which expire in less than three weeks.

BUY PUT SEP 65.00 OAQ-UM open interest=2042 current ask $2.65
BUY PUT SEP 60.00 OAQ-UL open interest=1866 current ask .70

Annotated Chart:

Picked on September 01 at $ 63.63 
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        1.9 million  
Listed on September 01, 2009