NEW DIRECTIONAL CALL PLAYS

Amgen Inc. - AMGN - close: 83.54 change: +1.67

Stop Loss: 81.45
Target(s): 88.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Biotech giant AMGN is showing some relative strength. Shares had been consolidating sideways the last several days. The stock began trading ex-dividend today. The quarterly cash dividend was 36 cents. Currently AMGN has a bullish trend of higher lows and higher highs on the daily chart. We want to jump on board with today's rally.

Today's high was $83.62. I am suggesting a trigger to buy calls at $83.75. More conservative traders could wait for a new high over $84.40 while nimble traders could try and buy a dip near $82.50 instead.

Trigger @ 83.75

- Suggested Positions -

buy the Sep $85 call (AMGN1222i85) current ask $1.36

- or -

buy the Oct $85 call (AMGN1220j85) current ask $2.17

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 4.8 million
Listed on August 14, 2012


NEW DIRECTIONAL PUT PLAYS

Coach, Inc. - COH - close: 54.33 change: -1.61

Stop Loss: 56.05
Target(s): 50.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
News that U.S. retail sales in July were up, breaking a three-month down streak, failed to help shares of COH today. The stock underperformed with a -2.8% decline. The larger trend for COH has been bearish and it looks like the path of least resistance is still down.

I am suggesting a trigger to buy puts at $53.95. We will target a drop toward $50.00 but more aggressive traders could aim lower.

Trigger @ 53.95

- Suggested Positions -

buy the Sep $50 PUT (COH1222u50) current ask $1.10

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 6.8 million
Listed on August 14, 2012