NEW DIRECTIONAL CALL PLAYS

Whole Foods Market, Inc. - WFM - close: 97.00 change: +1.06

Stop Loss: 94.75
Target(s): 104.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WFM saw a very ugly drop back in July but shares quickly recovered. Now WFM is on the verge of hitting new all-time highs. I do consider this a slightly more aggressive trade. Normally one would assume the $100 level is initially overhead resistance. However, the P&F chart is forecasting at $128 target. Plus, WFM is building on a pattern of higher lows.

Today's high was $97.75. I am suggesting a trigger to buy calls at $98.00. We will target a move to $104.50. Keep position size small to limit risk.

Trigger @ $98.00 *Small Positions*

- Suggested Positions -

buy the Sep $100 call (WFM1222i100) current ask $1.18

- or -

buy the Oct $100 call (WFM1220j100) current ask $2.34

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 1.7 million
Listed on August 22, 2012


Westlake Chemical - WLK - close: 69.66 change: +0.76

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this chemical company are near all-time highs. Traders bought the dip in mid August as WLK pulled back to prior resistance from March of this year. Now WLK is on the verge of breaking out past the $70.00 level.

The weekly chart would suggest WLK has built a bullish cup-and-handle formation.

I am suggesting we use a trigger to buy calls at $70.25. Our initial target is $74.75.

Trigger @ 70.25

- Suggested Positions -

buy the Sep $70 call (WLK1222i70) current ask $2.30

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 507 thousand
Listed on August 22, 2012