NEW DIRECTIONAL CALL PLAYS

AthenaHealth, Inc. - ATHN - close: 72.25 change: +1.61

Stop Loss: 69.75
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ATHN is a business services company for the healthcare industry. You'll notice that shares did not see a sell-off when the market dipped recently. Instead ATHN merely consolidated sideways. There is a good chance that ATHN could see a short squeeze if it breaks out past its 2011 high at $72.70. The most recent data listed short interest at 34% of the small 34.7 million-share float.

I am suggesting bullish positions now at the opening bell tomorrow but only if both ATHN and the S&P 500 index open positive. If these conditions are not met then we will use an alternative entry point and buy calls if ATHN trades at $72.75 instead. Our target is $77.50. FYI: The Point & Figure chart for ATHN is bullish with a $105 target.

Do not enter position unless ATHN and the S&P 500 are both positive at the open - or - ATHN trades at $72.75

- Suggested Positions -

buy the Apr $75 call (ATHN1221D75) current ask $2.40

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 577 thousand
Listed on March 07, 2012


Clean Harbors, Inc. - CLH - close: 67.17 change: +1.81

Stop Loss: 64.75
Target(s): 71.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CLH is in the waste management industry. The stock has been consistently bouncing at technical support at the rising 50-dma. CLH just did it again today. The combination of today's relative strength and bounce from support looks like a bullish entry point.

I am suggesting bullish positions at the opening bell tomorrow but only if both CLH and the S&P 500 index open positive. If these conditions are not met then we will use an alternative entry point and buy calls if CLH trades at $67.75 instead.

Our target is $71.50 but more conservative traders may want to exit near $70.00. Aggressive trades could aim higher.

Do not enter position unless CLH and the S&P 500 are both positive at the open - or - CLH trades at $67.75

- Suggested Positions -

buy the Apr $70 call (CLH1221D70) current ask $1.30

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 344 thousand
Listed on March 07, 2012