NEW DIRECTIONAL CALL PLAYS

Boeing Co. - BA - close: 71.93 change: +1.76

Stop Loss: 69.60
Target(s): 77.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BA had some good news on Friday. The National Labor Relations Board (NLRB) has dropped its lawsuit again BA. Meanwhile the fight between BA and Airbus is heating up. The U.S. is threatening $7-to-$10 billion in sanctions if the EU doesn't comply with the WTO's previous ruling about government subsidies to Airbus.

Shares of BA delivered a nice bounce on Friday (+2.5%) after consolidating sideways in the $72-70 zone all week. I am suggesting we take advantage of this move. Buy calls on Monday morning but only if both BA and the S&P 500 index open positive. We'll use a stop loss at 69.60, just under last week's low. There is potential resistance at $75.00 and more conservative traders may want to exit there. I am aiming for $77.00. FYI: The Point & Figure chart for BA is bullish with a $79 target.

*See Entry Details Above*

- Suggested Positions -

buy the 2012Jan $75 call (BA1221A75) ask $1.39

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on December 10, 2011


FMC Technologies, Inc. - FTI - close: 51.86 change: +1.58

Stop Loss: 49.90
Target(s): 58.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FTI is an oil services stock that hit new all-time highs early last week. Shares have seen pulled back to prior resistance and what should be significant support near $50.00. Friday's bounce off this level looks like a new bullish entry point to buy calls.

I am suggesting bullish positions on Monday morning but only if both FTI and the S&P 500 index open positive. We'll use a stop loss at $49.90. Conservative traders will want to exit near $55.00. We are setting our target at $58.00. FYI: The Point & Figure chart for FTI is bullish with a $69 target.

*See Entry Details Above*

- Suggested Positions -

buy the Jan $55 call (FTI1221A55) ask $1.45

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/14/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on December 10, 2011


NEW DIRECTIONAL PUT PLAYS

Juniper Networks - JNPR - close: 19.90 change: -0.15

Stop Loss: 21.05
Target(s): 16.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JNPR is a networking stock. Shares have been underperforming both its peers and the wider market. The stock did not participate in the market-wide rebound on Friday. Shares actually hit new six-week lows and look poised to retest their early October lows.

You could argue that JNPR is short-term oversold here but that doesn't mean it can't get more oversold. We will want to keep our position size small to limit our risk. I am suggesting a trigger to open bearish positions at $19.60 and we'll target a drop to $16.75. We'll start with a stop loss at $20.75.

Trigger @ 19.60 (small positions)

- Suggested Positions -

buy the 2012Jan $17.50 PUT (JNPR1221M17.5) ask $0.50

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 8.8 million
Listed on December 10, 2011