NEW DIRECTIONAL CALL PLAYS

CVS Caremark Corp. - CVS - close: 48.05 change: +0.53

Stop Loss: 46.75
Target(s): 52.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the August 76th earnings
New Positions: Yes, see below

Company Description

Why We Like It:
CVS runs a chain of drugstores. The stock broke out past significant resistance in late June at the $46 level. Now the stock is bouncing after a recent correction lower and CVS looks poised to breakout to new highs.

I am suggesting a trigger to open bullish positions at $48.40. We'll start with a stop loss at $46.75. It is possible that the $50.00 level could be round-number, psychological resistance but we are going to aim for the $52.00 mark. Just remember to exit prior to the August 7th earnings report.

Trigger @ $48.40

- Suggested Positions -

buy the Aug $50 call (CVS1218H50) current ask $0.43

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/076/12 (confirmed)
Average Daily Volume = 7.3 million
Listed on July 14, 2012


NEW DIRECTIONAL PUT PLAYS

Tractor Supply Co. - TSCO - close: 81.01 change: -1.85

Stop Loss: 84.15
Target(s): 76.00
Current Option Gain/Loss: + 0.0%
Time Frame: exit prior to the July 25th earnings
New Positions: Yes, see below

Company Description

Why We Like It:
TSCO continues to breakdown through support levels. The oversold bounce on Thursday is already failing. TSCO looks poised to drop toward what should be support near $75.00. I am suggesting we launch new bearish positions at the open on Monday with a stop loss at $84.15. Our target is $76.00. Bear in mind that this is going to be a short-term trade. We want to exit prior to the July 25th earnings report. FYI: The Point & Figure chart for TSCO is bearish with a $70 target.

- Suggested Positions -

buy the Aug $80 PUT (TSCO1218T80) current ask $3.50

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 07/25/12 (confirmed)
Average Daily Volume = 1.0 million
Listed on July 14, 2012