NEW DIRECTIONAL CALL PLAYS

Ross Stores Inc. - ROST - close: 63.76 change: +1.45

Stop Loss: 62.45
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this discount apparel chain are back to showing strength again. The long-term up trend was briefly broken in mid May but ROST quickly recovered. Now it's poised to breakout to new highs.

I am suggesting a trigger to buy calls at $64.05 with a stop loss at $62.45, just under today's low.

Trigger @ 64.05

- Suggested Positions -

buy the Jul $65 call (ROST1221G65) current ask $1.90

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 06, 2012


NEW DIRECTIONAL PUT PLAYS

Coach Inc. - COH - close: 62.84 change: -1.11

Stop Loss: 64.05
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Wow! The lack of action in COH is surprising. The stock failed to participate in the market's very widespread rally today. This relative weakness could be a warning sign of further declines to come.

I am suggesting a trigger to buy puts at $62.25. It's possible the $60.00 level could be support but we're aiming for $58.50. We'll use a stop loss at $64.05.

Trigger @ 62.25

- Suggested Positions -

buy the Jul $60 PUT (COH1221S60) current ask $2.05

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on June 06, 2012