NEW DIRECTIONAL CALL PLAYS

Airgas Inc. - ARG - close: 91.71 change: -0.33

Stop Loss: 89.65
Target(s): 97.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ARG recently reported earnings that beat on both the top and bottom line. Traders bought the dip near support at $90.00 following the earnings news. ARG has managed to hold up well during a down week for the market. The stock continues to trade with a bullish trend of higher highs and higher lows.

The high on Thursday was $92.40 while the low was $89.75. I am suggesting a trigger to buy calls at $92.50 with a stop loss at $89.65. Our multi-week target is $97.50. FYI: The Point & Figure chart for ARG is bullish with a $119 target.

NOTE: We want to keep our position size small. You could argue that ARG is forming a wedge pattern, which could be considered bearish.

Trigger @ 92.50 (small positions)

- Suggested Positions -

buy the May $92.50 call (ARG1219E92.5) current ask $0.95

- or -

buy the Jun $95.00 call (ARG1216F95) current ask $1.00

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 05/03/12
Average Daily Volume = 476 thousand
Listed on May 05, 2012


NEW DIRECTIONAL PUT PLAYS

Fiserv, Inc. - FISV - close: 67.51 change: -1.56

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FISV reported earnings on the first of May and shares immediately sold off the next day. The move this past week has created a bearish reversal pattern (easiest to see on the weekly chart). FISV has also broken down under technical support at its 40 and 50-dma and now under the $68.00 level.

I am suggesting a trigger to launch bearish positions at $67.40. We'll start with a stop loss at $70.05. Our target is $63.50 although I am expecting the $65.00 level to offer some support so expect a bounce near $65.

Trigger @ 67.40

- Suggested Positions -

buy the May $70 put (FISV1219Q70) current ask $2.70

- or -

buy the Jun $65 put (FISV1216R65) current ask $0.85

Annotated Chart:

Weekly Chart:

Entry on May xx at $ xx.xx
Earnings Date 05/01/12
Average Daily Volume = 693 thousand
Listed on May 05, 2012