NEW DIRECTIONAL CALL PLAYS

Family Dollar Stores - FDO - close: 64.63 change: +0.37

Stop Loss: 62.90
Target(s): 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FDO has been consolidating sideways near record highs under the $65 level for the last couple of weeks. Shares look poised to breakout soon and we want to hop on board when it does.

I am suggesting a trigger to buy calls at $65.35 with a stop loss at $62.90. Our multi-week target is $69.75. FYI: The Point & Figure chart for FDO is bullish with an $88 target.

Trigger @ $65.35

- Suggested Positions -

buy the May $65 call (FDO1219E65) current ask $1.85

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 06/27/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 16, 2012


NEW DIRECTIONAL PUT PLAYS

Dollar Thrifty Automotive - DTG - close: 77.92 change: -1.39

Stop Loss: 80.10
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: up to its early May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
DTG is an auto rental compoany. Shares have been marching higher for months but it looks like the rally has reversed near its 2011 highs. Now shares are starting to breakdown. They broke support near $80 a few days ago. Today DTG broke down under the 50-dma.

I am suggesting we buy puts at the open tomorrow. There is potential support near $75 and its 100-dma but we're aiming for $72.50.

- Suggested Positions -

buy the May $75 PUT (DTG1219Q75) current ask $2.05

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 247 thousand
Listed on April 16, 2012