NEW DIRECTIONAL CALL PLAYS

Panera Bread Co. - PNRA - close: 76.81 change: -1.72 stop: 73.75

Company Description:
Panera Bread Company owns and franchises 1,380 bakery-cafes as of December 29, 2009 under the Panera Bread®, Saint Louis Bread Co.®, and Paradise Bakery & Café® names. With our identity rooted in handcrafted, fresh-baked, artisan bread, we are committed to providing great tasting, quality food that people can trust.

Why We Like It:
Shares of PNRA continue to outperform the market. The current rally really got started back in October. PNRA beat earnings estimates and raised guidance on Oct. 28th and the stock gapped higher. Shares never looked back. PNRA raised guidance again on January 20th this year and gapped above resistance at $70.00. Now after weeks of consolidating under major resistance and its all-time high near $75.00 the stock has broken out. We want to hop on board. I suspect PNRA will pull back and retest broken resistance near $75.00 as new support. I'm suggesting a trigger to buy calls at $75.25. If triggered our first target is $78.50. Our second target is $82.25.

Trigger to buy calls @ 75.25

Suggested Position: CALL APR 80.00 (PNRA 10D80.00) @ $x.xx

Chart:

Entry on March 10th at $ xx.xx
Earnings Date 04/28/10
Average Daily Volume = 519 thousand
Listed on March 9th, 2010


NEW DIRECTIONAL PUT PLAYS

Intl. Business Machines - IBM - $125.55 change: -0.86 stop: 127.65

Company Description:
IBM is a leading hardware and IT services company. Here's an excerpt from their website: The company's strategy is to focus on the high-growth, high-value segments of the IT industry. The company's global capabilities include services, software, hardware, fundamental research and financing. The broad mix of businesses and capabilities are combined to provide business insight and solutions for the company's clients.

Why We Like It:
IBM is not participating in the market rally. The oversold bounce stalled in the $125-128 zone and shares produced a bearish reversal under prior support (now new resistance) on March 2nd. If the stock breaks down under short-term support near $125 it could head for the February lows near $121.60 or the 200-dma closer to $120.

I am suggesting a trigger to buy puts at $124.90. If triggered our first target is $121.70 near the February lows. More aggressive traders may want to aim lower since IBM has broken its long-term up trend.

Trigger to buy puts @ 124.90

Suggested Position: PUT IBM 120.00 (IBM 10P120.00) @ $x.xx

Chart:

Entry on March 10th at $ xx.xx
Earnings Date 04/19/10
Average Daily Volume = 5.67 million
Listed on March 9th, 2010