Editor's Note:

I'm listing a couple of candidates that could benefit from any end of quarter window dressing. The idea here is to catch a short-term bounce. We want to keep our position size small to limit our risk. My market bias is not bullish but that doesn't mean stocks won't see a stronger rebound over the next week.

- James


NEW DIRECTIONAL CALL PLAYS

Abercrombie & Fitch Co - ANF - close: 65.24 change: +0.62

Stop Loss: 63.45
Target(s): 69.50
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Stocks could see some end of quarter window dressing over the next three days. I suspect that ANF could benefit from this influx of money. Plus, ANF is currently sitting on key technical support at the simple 100-dma. Shares have not closed under this level in many months. If there was a spot to buy a dip or bounce then this is a good one since we can use a tight stop loss. I am suggesting we launch small bullish positions right here with a stop at $63.45. The low today was $63.85 so more conservative traders may want to use an even tighter stop loss. Aggressive traders could put their stop under last week's low at $62.46.

This should be a very short-term trade. I estimate just a few days. Our target to exit is $69.50.

- Suggested (SMALL) Positions -

buy the July $67.50 call (ANF1116G67.5) current ask $1.30

Annotated Chart:

Entry on June 28 at $ xx.xx
Earnings Date 08/17/11 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on June 27, 2011


Tiffany & Co. - TIF - close: 76.38 change: +0.68

Stop Loss: 73.25
Target(s): 79.75, 84.00
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Investors remain bullish on the high-end retailer and TIF has not broken its up trend. The Point & Figure chart is bullish with a long-term target of $113. I am suggesting we take advantage of TIF's relative strength now and launch small bullish positions. TIF could benefit from any end of quarter window dressing. I do consider this an aggressive entry point. TIF still has some short-term resistance at $77.00. More conservative traders may want to wait for a new rise past $77.00 before initiating positions. Our targets are $79.75 for the July calls and $79.75 and $84.00 for the August calls.

- Suggested (SMALL) Positions -

buy the July $77.50 call (TIF1116G77.5) current ask $1.47

- or -

buy the Aug. $80 call (TIF1120H80) current ask $1.98

Annotated Chart:

Entry on June 28 at $ xx.xx
Earnings Date 08/26/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on June 27, 2011