NEW DIRECTIONAL CALL PLAYS

Schnitzer Steel Industries - SCHN - close: 47.60 change: +1.87

Stop Loss: 44.49
Target(s): 52.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Investors were in a buy the dip mood today. Industrial and resource names performed well. SCHN is bouncing from support (and prior resistance) near the $45 level. Today's close back above its simple 100-dma is also a positive sign.

I am suggesting we buy calls on SCHN now if both the stock and the S&P 500 index can open positive in the morning. If triggered we'll use a stop under yesterday's low. FYI: The Point & Figure chart for SCHN is bullish with a $61 target.

*See Entry Details Above*

- Suggested Positions -

buy the DEC $50 call (SCHN1117L50) current ask $2.50

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 01/05/12 (unconfirmed)
Average Daily Volume = 311 thousand
Listed on November 2, 2011


Tech Data Corp - TECD - close: 49.43 change: +1.16

Stop Loss: 47.49
Target(s): 53.75
Current Option Gain/Loss: Unopened
Time Frame: up to November earnings
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this wholesale computer and electronics company are bouncing from support near $48 and its simple 200-dma. The stock could be poised to make a run at its 52-week highs near $54.00. I am suggesting we take advantage of the bounce and buy calls now. However, we only want to launch positions if both TECD and the S&P 500 index open positive tomorrow.

We'll set our stop loss at 47.49. Our target is $53.75. Don't be surprised if the $52.00 level acts as short-term resistance. FYI: The Point & Figure chart for TECD is bullish with a $67 target.

*See Entry Details Above*

- Suggested Positions -

buy the DEC $50 call (TECD1117L50) current ask $2.25

Annotated Chart:

Entry on November xx at $ xx.xx
Earnings Date 11/21/11 (confirmed)
Average Daily Volume = 650 thousand
Listed on November 2, 2011