NEW DIRECTIONAL CALL PLAYS

Costco Wholesale - COST - close: 86.56 change: +1.07

Stop Loss: 85.25
Target(s): 91.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
COST has been showing relative strength the last few days. The stock is hovering between technical support at its 150-dma and technical resistance at its 50-dma. Shares look poised to breakout from this range. Last Thursday's high was $87.05. I am suggesting we buy calls when COST trades at $87.25. Our target is $91.50.

Trigger @ 87.25

- Suggested Positions -

buy the Jul $90 call (COST1221G90) current ask $1.07

Annotated Chart:

Weekly Chart:

Entry on June xx at $ xx.xx
Earnings Date 10/03/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on June 04, 2012


Monster Beverage - MNST - close: 73.11 change: +2.57

Stop Loss: 69.95
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of energy drink maker MNST have continued to march higher in spite of the market's weakness. Traders continue to buy the dips and now MNST is poised to breakout toward new relative highs. Speaking of highs, the big spike back in April was on rumor that KO might buy MNST.

Last week MNST traded up near $74.00. I am suggesting a trigger to buy calls at $74.25. If triggered our targets is $79.50. FYI: MNST's annual shareholder meeting is scheduled for June 8th (Friday).

Trigger @ 74.25

- Suggested Positions -

buy the Jul $80 call (MNST1221G80) current ask $1.65

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 04, 2012