NEW DIRECTIONAL CALL PLAYS

Intercontinental Exchange - ICE - close: 105.84 chg: +7.59 stop: 94.90

Why We Like It:
Shares of ICE spent almost four months consolidating under resistance at the $100.00 level. Shares finally broke out on Friday with a 7.7% rally on strong volume. The rally stalled near its long-term trendline of lower highs so I'm expecting a dip. Broken resistance near $100 should be support.

Use a trigger at $101.00 to buy calls. We'll use a stop at $94.90. Our first target is $109.75. Our second target is $114.75. More aggressive traders could aim higher but we want to exit ahead of the November 3rd earnings report.

Suggested Options:
I'm suggesting the November calls. My preference is the $100 strike (on a dip with a trigger at $101.00).

BUY CALL NOV 100 IHH-KT open interest=2134 current ask $9.30

Annotated Chart:

Picked on   October xx at $ xx.xx <-- TRIGGER @ $101.00
Change since picked:       + 0.00
Earnings Date            11/03/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 17, 2009         


NEW DIRECTIONAL PUT PLAYS

FUQI Intl. - FUQI - close: 25.30 change: -0.58 stop: 28.75

Why We Like It:
You may not have heard of FUQI. It is a Chinese company selling jewelry. The stock exploded higher back in May but the rally has run out of gas. The new path of least resistance appears to be down. It remains a very volatile stock and I would feel much more comfortable buying puts (limited risk) than shorting the stock.

I'm suggesting bearish positions now but the $25.00 level could be round-number support. A better entry point is probably a bounce toward $27.00. We'll use a stop above last week's high. I would consider this an aggressive trade so lets use small positions (1/2 to 1/4 our normal trade size). Our first target is $22.00. Our second target is $20.25. The P&F chart is currently bearish with an $18.00 target.

We'll plan to exit ahead of the mid November earnings report.

Suggested Options:
I'm suggesting the November puts. My preference is the $25 strike.

BUY PUT NOV 25.00 QXF-WE open interest= 540 current ask $2.25

Annotated Chart:

Picked on   October 17 at $ 25.30
Change since picked:       + 0.00
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        1.3 million  
Listed on   October 17, 2009         


Netease.com - NTES - close: 38.47 change: -1.32 stop: 41.65

Why We Like It:
NTES is another Chinese stock that is breaking down. The failed rebound last week confirms the new trend is down. We'll use a stop loss at $41.65. Our first target is $35.25. Our second target is $33.00, just above the simple 200-dma. We want to exit ahead of the mid November earnings report. FYI: The P&F chart is bearish with a $25 target.

Suggested Options:
I'm suggesting the November puts. My preferred strike is the $35 put.

BUY PUT NOV 35.00 NGH-WG open interest=2015 current ask $1.35

Annotated Chart:

Picked on   October 17 at $ 38.47
Change since picked:       + 0.00
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on   October 17, 2009