NEW DIRECTIONAL CALL PLAYS

F5 Networks - FFIV - close: 100.83 change: +0.34

Stop Loss: 97.90
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this software stock appear to be building a bottom. The last three months have seen FFIV consolidating in the $90-105 area. Now shares are bouncing from short-term support near $98 and several moving averages.

I am suggesting new bullish positions at the open tomorrow. Nimble traders could try and buy a new dip near $100 while more conservative traders might want to wait for a new rise past $102. The $105.00 level (and its 300-dma) are currently overhead resistance but we are going to aim for $109.00. FYI: The Point & Figure chart for FFIV is bullish with a $125 target.

I would limit our position size and keep it small to lower our risk.

- Suggested *Small* Positions -

buy the Sep $105 call (FFIV1222i105) current ask $2.68

- or -

buy the Oct $105 call (FFIV1220j105) current ask $5.00

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 1.4 million
Listed on August 28, 2012


NEW DIRECTIONAL PUT PLAYS

CH Robinson Worldwide - CHRW - close: 56.10 change: -0.43

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The transportation sector's rally/rebound has reversed. The group is showing relative weakness. Meanwhile CHRW is already in a long-term down trend looks poised to resume its decline after this mid-August bounce.

I am suggesting small bearish positions at the open tomorrow. I do consider this a slightly aggressive entry point since the $56.00, 55.75, 55.50 levels have all been temporary support in the past. You could wait for a new drop under the $55.00 level as your entry point but if you do you'll need to adjust your stop loss.

Our target is $50.50. We will start with a stop loss at $58.05. Then likely move it to $57.55 and then toward $56.00 as the play progresses.

- Suggested *Small* Positions -

buy the Oct $55 PUT (CHRW1220v55) current ask 41.50

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 1.1 million
Listed on August 28, 2012