NEW DIRECTIONAL CALL PLAYS

Celgene Corp. - CELG - close: 71.44 change: +0.37

Stop Loss: 69.90
Target(s): 75.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CELG is a popular biotech stock. The company's recent earnings report was bullish. Management beat Wall Street's estimates and raised their 2012 guidance. The stock has rallied to new multi-week highs and is above all of its key moving averages. There appears to be potential resistance near $72.00. Therefore I am suggesting a trigger to buy calls at $72.25. Our target is $75.75.

FYI: The Point & Figure chart for CELG is bullish with an $81 target.

Trigger @ 72.25

- Suggested Positions -

buy the Sep $75 call (CELG1222I75) current ask $1.01

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 3.4 million
Listed on August 7, 2012


WellPoint Inc. - WLP - close: 56.26 change: +1.62

Stop Loss: 54.40
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WLP is a healthcare stock. Shares crashed with a big gap down in late July after the company lowered their earnings guidance. The surprise is the lack of follow through lower. WLP has spent two weeks consolidating sideways and building a new base in the $52.50-56.00 zone. Now it's breaking out and there is a chance WLP will try and "fill the gap".

Today's high was $56.34. I am suggesting a trigger to buy calls at $56.50 and we'll aim for $59.75.

Trigger @ 56.50

- Suggested Positions -

buy the Sep $57.50 call (WLP1222I57.5) current ask $1.57

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 4.4 million
Listed on August 7, 2012