NEW DIRECTIONAL CALL PLAYS

Athenahealth, Inc. - ATHN - close: 81.63 change: +2.46

Stop Loss: 78.40
Target(s): 89.00
Current Option Gain/Loss: + 0.0%
Time Frame: exit prior to earnings on July 19th
New Positions: Yes, see below

Company Description

Why We Like It:
ATHN is a business services company for healthcare and medical groups across the country. This stock could see a short squeeze. The most recent data listed short interest at 40% of the small 35.2 million share float. The recent relative strength also bodes well and ATHN just broke out above resistance at the $80.00 mark again.

I am suggesting new bullish positions at the open tomorrow. More nimble traders could try and buy a dip near $80.00 instead. We'll aim for $89.00 but conservative traders may want to exit early near the June highs (about $87). We will plan to exit prior to the July 19th earnings report. FYI: The Point & Figure chart for ATHN is bullish with a $92 target.

- Suggested Positions -

buy the Jul $85 call (ATHN1221G85) current ask $2.10

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 07/19/12 (confirmed)
Average Daily Volume = 481 thousand
Listed on July 02, 2012


NEW DIRECTIONAL PUT PLAYS

Youku Inc. - YOKU - close: 20.18 change: -1.50

Stop Loss: 21.25
Target(s): 16.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
YOKU might be considered a Chinese version of Youtube. Shares of YOKU have been churning sideways in the $20-25 zone for three months. Now it looks like YOKU might breakdown from this range.

I am suggesting we launch small bearish positions if YOKU trades at $19.90 or lower. We'll use a stop loss at $21.25. More conservative traders may want to wait for YOKU to trade under the May low of $19.47 before initiating positions instead. If triggered our target is $16.00.

FYI: We want to keep our position size small because YOKU already has a high amount of short interest. The most recent data listed short interest at almost 19% of the 50.2 million share float and that raises the risk of a short squeeze higher.

Trigger @ 19.90 *Small Positions*

- Suggested Positions -

buy the Jul $19 PUT (YOKU1221S19) current ask $0.60

- or -

buy the Aug $19 PUT (YOKU1218T19) current ask $1.55

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on July 02, 2012