NEW DIRECTIONAL CALL PLAYS

United Natural Foods - UNFI - close: 49.86 change: +0.99

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
UNFI is in the natural, organic and specialty food business. That industry could get a boost tomorrow thanks to a bullish earnings report from Whole Foods Market (WFM) tonight. Shares of UNFI were already looking bullish with the recent breakout past its 2012 highs near $49.00. Today's big bounce reaffirmed the up trend.

I would not be surprised to see UNFI gap open higher tomorrow. I'm suggesting we buy calls at the open anyway. We'll use a stop loss at $48.25. Our target is $54.50. FYI: The Point & Figure chart for UNFI is bullish with a long-term $82 target.

buy calls at the open

- Suggested Positions -

buy the May $50 call (UNFI1219E50) current ask $0.95

Annotated Chart:
%IMG %

Entry on May xx at $ xx.xx
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 250 thousand
Listed on May 02, 2012


NEW DIRECTIONAL PUT PLAYS

Siemens AG - SI - close: 91.27 change: -1.93

Stop Loss: 91.55
Target(s): 86.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SI is a very large electronics and manufacturing company based in Germany. One of their main rivals is General Electric (GE). Shares of SI have been trending lower after breaking down from a multi-month consolidation pattern. Now the stock is testing support near the $90.00 level.

I am suggesting a trigger to buy puts at $89.75. Our target is $86.00. SI has support in the $85.50-85.00 zone from 2011. I am suggesting we keep our position size small. SI tends to gap open each day as it adjusts to trading back home in Europe. We'll use a stop loss at $91.55. FYI: The Point & Figure chart for SI is bearish with a $74 target.

Trigger @ 89.75 (small positions)

- Suggested Positions -

buy the May $90 PUT (SI1219Q90) current ask $1.35

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 04/25/12
Average Daily Volume = 839 thousand
Listed on May 02, 2012