NEW DIRECTIONAL CALL PLAYS

Core Labs - CLB - close: 106.93 change: +0.10

Stop Loss: 104.25
Target(s): 111.50, 113.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
We were poised to add CLB as a call play yesterday evening but decided against it. Shares broke down under what should have been support near $105.00 this morning before reversing higher. We view the intraday bounce today as a bullish entry point but we do want to keep our position size small to really limit our risk. We'll start the play with a stop at $104.20, just under today's low. We only want to start positions if CLB and the S&P 500 open in positive territory tomorrow morning.

As the market produces an oversold bounce we're looking for CLB to rally toward resistance near $112 and possibly hit $114. I'm setting our targets at $111.50 and $113.75.

FYI: The Point & Figure chart for CLB is very bullish with a long-term price objective of $171.

August options expire in less than two and a half weeks.

buy calls if CLB and S&P 500 open positive tomorrow.

- Suggested (SMALL) Positions -

buy the AUG $110 call (CLB1120H110)

- or -

buy the SEP $110 call (CLB1117I110)

Annotated Chart:

Entry on August at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 526 thousand
Listed on August 2, 2011


Range Resources Corp. - RRC - close: 64.40 change: -0.18

Stop Loss: 61.90
Target(s): 68.00, 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
RRC has been showing impressive relative strength the last couple of weeks. Yesterday looked like a bearish reversal and this morning there was definitely follow through. Unfortunately for the bears RRC managed to reverse higher with the rest of the market. This looks like an opportunity to hop on a momentum stock. We'll buy calls on RRC now if both the stock and the S&P 500 open positive tomorrow morning. Our stop loss is $61.90. Our targets are $68.00 and $69.75.

FYI: August options expire in less than two and a half weeks.

buy calls if RRC and S&P 500 open positive tomorrow.

- Suggested Positions -

buy the AUG $65 call (RRC1120H65) current ask $1.90

- or -

buy the SEP $67.50 call (RRC1117I67.5) current ask $2.20

Annotated Chart:

Entry on August xx at $ xx.xx
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 3.1 million
Listed on August 3, 2011