NEW DIRECTIONAL CALL PLAYS

Intrepid Potash, Inc. - IPI - close 22.48 change -0.74 stop 20.90

Company Description:
Intrepid Potash, Inc. is a domestic producer of muriate of potash. It is also engaged in the production and marketing of potash and langbeinite. The Company markets the langbeinite under the name of Trio. As of December 31, 2009, the Company owned five active potash production facilities, including three in New Mexico and two in Utah. During 2009, the Company produced approximately 504,000 tons of potash.

Target(s): 22.85, 23.20, 23.80
Key Support/Resistance Areas: 23.25, 22.00, 21,00
Time Frame: 1 to 2 weeks

Why We Like It:
Ag stocks are gaining momentum and I like IPI on any further weakness. IPI has longer term support/resistance at $22.00 and $21.00. The stock broke below those areas during the weakness in the early July but has since rebounded and broken out of the resistance on strong volume. The stock retreated from its 50-day SMA on Friday on significantly lighter volume. I'm looking for a little more pullback and suggest readers initiate long positions if IPI trades down to $21.80. Our stop will be $20.90 which is below the 20-day SMA and the important $21.00 support level.

Suggested Position: August $22.00 CALL, current ask $1.60, estimated ask at entry $1.25

Annotated Chart:

Entry on July xx
Earnings Date 8/4/10 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on 7/17/10


NEW DIRECTIONAL PUT PLAYS

Wynn Resorts - WYNN - close 79.57 change -3.45 stop 85.50

Company Description:
Wynn Resorts, Limited (Wynn Resorts) is a developer, owner and operator of destination casino resorts. It owns and operates two destination casino resorts Wynn Las Vegas, on the Strip in Las Vegas, Nevada, Encore at Wynn Las Vegas located adjacent to Wynn Las Vegas, and Wynn Macau, located in the Macau Special Administrative Region of the People’s Republic of China (Macau). The Company is also constructing Encore at Wynn Macau, an expansion of its Wynn Macau resort.

Target(s): 74.50, 72.25
Key Support/Resistance Areas: 85.00, 84.00, 76.50, 72.00
Time Frame: 1 week

Why We Like It:
I'm looking for WYNN to break down from here and touch its longer term upward trend line that began in November. This is at about $74.50 which is our first target. If the broader market is weak I see no reason why WYNN won't trade down to its 200-day SMA which it hasn't done since last July. The stock also broke below its 20-day and 50-day SMA's on Friday. I suggest readers initiate short positions if WYNN trades to $80.80 or $79.10 which is below Friday's low, whichever occurs first. NOTE: I view this trade as being aggressive and potentially quick.

Suggested Position: August $108.00 PUTS, current ask $2.64, estimated ask at entry $2.35

Annotated chart:

Entry on July xx
Earnings 7/29/10 (unconfirmed)
Average Daily Volume: 2.92 million
Listed on July 17, 2010