NEW DIRECTIONAL CALL PLAYS

Ashland Inc. - ASH - close: 69.31 change: +0.93

Stop Loss: 67.75
Target(s): 74.75, 77.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ASH is a specialty chemicals company. The stock has been testing resistance near $70 this month. Traders have been buying the dips near its prior highs (now new support) in the $67 area. Shares of ASH now look poised to breakout to new multi-year highs.

I am suggesting a trigger to buy calls at $70.25. The stock's all-time high is $75.17. We'll set our first target at $74.75. FYI: The Point & Figure chart for ASH is bullish with a $90 target.

Trigger @ 70.25

- Suggested Positions -

buy the Jul $70 call (ASH1221G70) current ask $1.45

- or -

buy the Aug $75 call (ASH1218H75) current ask $1.05

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 937 thousand
Listed on June 30, 2012


NEW DIRECTIONAL PUT PLAYS

FLIR Systems - FLIR - close: 19.50 change: +0.41

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of FLIR are underperforming both the market and its peers in the aerospace and defense industries. The stock hit new multi-year lows this past week. Friday's short-covering bounce didn't make it very far. We think the down trend continues.

I'm suggesting bearish put positions now or you can wait for a bounce closer to likely resistance at the $20.00 mark instead. Our target is $17.75. FYI: The Point & Figure chart for FLIR is bearish with a $7 target.

- Suggested Positions -

buy the Jul $20 PUT (FLIR1221S20) current ask $1.25

- or -

buy the Aug $19 PUT (FLIR1218T19) current ask $0.65

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/20/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on June 30, 2012