NEW DIRECTIONAL CALL PLAYS

Apple Inc. - AAPL - close: 351.99 change: +5.32

Stop Loss: 344.00
Target(s): 364.00, 379.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Once again folks lined up for AAPL's latest product launch. This time it was for the new, sleeker, thinner iPad 2. While consumers are racing to buy it, analysts are trying to guess just how big is the tablet market and what will the iPad 2's impact be. Evidently, according to some reports, the new iPad 2 is going to be a bigger hit than the original iPad. Proponents are claiming that AAPL will remain out in front of the pack even though the pack of competing tablet PCs is growing significantly.

Technically shares of AAPL just bounced from technical support at the rising 50-dma again. Not only that shares bounced from support at $345.00 plus the stock has produced a bullish engulfing candlestick pattern with Friday's rebound. Yet in spite of all the bullishness I am labeling this an aggressive, higher-risk trade. The NASDAQ looks vulnerable to a sell-off after last week's decline. Normally I would have expected AAPL to see a sell-the-news move on this product release but shares were already off their recent highs.

Since this is an aggressive, higher-risk trade we want to keep our position size small to try and limit our risk. FYI: The Point & Figure chart for AAPL is bullish with a $448 target.

- Open Small Bullish Positions Now -

- Suggested Positions -

Buy the April $365 calls (AAPL1116D365) current ask $6.00

Annotated Chart:

Entry on March 14th at $ xx.xx
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume = 18 million
Listed on March 12th, 2010


Norfolk Southern Corp. - NSC - close: 66.53 change: +1.58

Stop Loss: 63.90
Target(s): 69.75, 74.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The transportation index was hammered lower during oil's rise to new two-year highs over the last few weeks. Yet the railroad index never broke its bullish trend. Now shares of NSC are breaking out past key resistance near $66.00. I am suggesting we buy calls on this relative strength. We can use a stop under the recent low. Our targets are $69.75 and $74.00.

open positions now, above $66.00

- Suggested Positions -

Buy the April $65 calls (NSC1116D65) current ask $3.10

- or -

Buy the April $70 calls (NSC1116D70) current ask $0.80

Annotated Chart:

Entry on March 14th at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.1 million
Listed on March 12th, 2010


Wynn Resorts Ltd. - WYNN - clos: 123.79 change: +0.70

Stop Loss: 119.75
Target(s): 129.75, 137.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of WYNN held up pretty well considering the terrible consumer sentiment numbers and the earthquake/tsunami in Japan. The consumer sentiment numbers could suggest that consumers are less like to spend money here in the U.S., which would mean less business in Vegas. Meanwhile the quake in Japan could have an effect on WYNN's properties in Macau but only 1.7% of the visitors to Macau originate from Japan so any loss of business would likely be minimal.

Technically shares of WYNN just bounced from a dip near support at $120 and the stock should see additional support at its rising 50-dma. I do consider this a more aggressive, higher-risk trade because WYNN can be so volatile. I am suggesting we buy calls now on Friday's intraday bounce but we want to keep our position size small to limit our risk. We'll start with a stop loss at $119.75.

- open small bullish positions now -

- Suggested Positions -

Buy the April $130 calls (WYNN1116D130) current ask $3.25

Annotated Chart:

Entry on March 14th at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 12th, 2010