NEW DIRECTIONAL CALL PLAYS

Cymer Inc. - CYMI - close: 52.05 change: +1.06

Stop Loss: 49.95
Target(s): 57.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CYMI is in the semiconductor equipment industry. This stock resisted the weakness persistent in the NASDAQ last week. CYMI has been consolidating sideways in the $50-52 zone and now it looks poised to breakout.

I am suggesting a trigger to buy calls at $52.60 with a stop at $49.95. Our multi-week target is $57.00. FYI: The Point & Figure chart for CYMI is bullish with a long-term $80 target.

Trigger @ 52.60

- Suggested Positions -

buy the Jun $55 call (CYMI1216F55) current ask $0.65

- or -

buy the Aug $55 call (CYMI1218H55) current ask $2.60

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 476 thousand
Listed on May 21, 2012


PriceSmart Inc. - PSMT - close: 71.47 change: +1.52

Stop Loss: 68.99
Target(s): 76.00
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PSMT was trading at all-time, record highs in early May. Then the market's sell-off in May plus a disappointing same-store sales figure for April helped send PSMT lower. Now PSMT is bouncing off technical support near its rising 200-dma and trend of higher lows.

This looks like an opportunity to buy calls near support and play the oversold bounce. I am suggesting we launch positions tomorrow at the open with a stop loss at $68.99, just under today's low. Our target is $76.00. More conservative traders may want to wait at $75.00 instead.

- Suggested Positions -

buy the Jun $75 call (PSMT1216F75) current ask $1.60

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 324 thousand
Listed on May 21, 2012