NEW DIRECTIONAL CALL PLAYS

Esterline Technologies - ESL - close: 69.72 change: +1.67

Stop Loss: 67.75
Target(s): 75.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ESL manufacturers parts for the aerospace and defense industries. The big spike higher in late March was due to rumors the company might be a takeover target. The stock has slowly consolidated lower until now it has formed a new base in the $66.50-70.00 zone.

I am suggesting a trigger to launch small bullish positions at $70.55. Out target is $75.75. We want to keep our position size small because the option spreads are just a little wide.

Trigger @ $70.55 (small positions)

- Suggested Positions -

Buy the May $75 call (ESL1219E75) current ask $1.25

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 361 thousand
Listed on April 17, 2012


NEW DIRECTIONAL PUT PLAYS

SINA Corp. - SINA - close: 60.96 change: -0.61

Stop Loss: 62.75
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SINA is a Chinese Internet company. They recently made a splash with their Weibo service, which is similar to Twitter. The stock has been struggling for the last few weeks. Last week's oversold bounce has already reversed and the stock did not participate in the market-wide rally today.

There is support near $60.00. Last week's low was $59.50. I am suggesting a trigger to buy puts at $59.40. We'll use a stop loss at $62.75 to start since SINA can be a volatile stock we want to keep our position size small. Our exit target is $51.00 but we should expect some support in the $57.00-56.50 zone.

Trigger @ 59.40 (small positions)

- Suggested Positions -

buy the May $55 PUT (SINA1219Q55) current ask $2.11

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on April 17, 2012