NEW DIRECTIONAL CALL PLAYS

Capital One Financial - COF - close: 54.92 change: +0.56

Stop Loss: 53.45
Target(s): 59.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of COF are consolidating sideways under resistance near $55.00. The bullish trend of higher lows would suggest the stock is about to breakout higher soon. I am suggesting a trigger to buy calls at $55.25. We'll use a stop at $53.45. Our target is $59.00 FYI: The Point & Figure chart for COF is bullish with a $62 target.

Trigger @ $55.25

- Suggested Positions -

buy the May $55 call (COF1219E55) current ask $1.30

- or -

buy the Jun $57.50 call (COF1216F57.5) current ask $1.05

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 07/11/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on April 25, 2012


NEW DIRECTIONAL PUT PLAYS

Rockwell Collins - COL - close: 55.05 change: -0.28

Stop Loss: 56.15
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
COL is in the aerospace and defense industry. Investors were not very impressed with the recent earnings report. Now the stock is flirting with a breakdown under support near $55.00. Today's low was $54.85.

I am suggesting a trigger to buy puts at $54.75. There is potential support at $53.00 but we're aiming for $51.50.

Trigger @ 54.75

- Suggested Positions -

buy the May $55 PUT (COL1219Q55) current ask $1.50

- or -

buy the Jun $55 PUT (COL1216R55) current as $2.00

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on April 25, 2012


Joy Global, Inc. - JOY - close: 70.76 change: -1.01

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this mining equipment maker have been underperforming the market. Now JOY is testing key support at the $70.00 level. I am suggesting we launch small bearish positions if shares hit $69.75. We'll try and limit our risk with a stop loss at $72.25 but I have to warn you that JOY can be a volatile stock. Adding to the volatility has been the occasional rumor that JOY might be a takeover target.

If triggered at $69.75 we will target a drop to $65.25. More aggressive traders could aim for the $62-60 zone.

Trigger @ 69.75 (small positions)

- Suggested Positions -

buy the May $70 PUT (JOY1219Q70) current ask $2.36

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 25, 2012