NEW DIRECTIONAL CALL PLAYS

Carter's Inc. - CRI - close: 55.71 change: +0.40

Stop Loss: 54.65
Target(s): 59.85
Current Option Gain/Loss: Unopened
Time Frame: 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CRI is a children's apparel retailer. They also market some of their products through department stores. The long-term up trend stalled back in April 2012. Shares have been consolidating sideways in a $49-56 trading range since then. Now CRI finally looks poised to breakout from this range.

I am suggesting a trigger to buy calls at $56.25. We'll use a stop loss at $54.65, which is just under Friday's low. Our target is $59.85.

FYI: There are three weeks left on the September options. Octobers are available but the spreads are too wide.

Trigger @ 56.25

- Suggested Positions -

buy the Sep $55 call (CRI1222i55) current ask $1.90

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 441 thousand
Listed on September 01, 2012


NEW DIRECTIONAL PUT PLAYS

PetroChina Co. Ltd. - PTR - close: 120.30 change: +1.18

Stop Loss: 121.25
Target(s): 111.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PTR is a major integrated oil company in China. Unfortunately for PTR the government of China limits gasoline prices. That's definitely squeezing margins for PTR's refining operations. Shares of PTR have fallen to support near $120. The July lows were near $119.

I am suggesting a trigger to buy puts at $118.75. Our target is $111.00. I do consider this somewhat of an aggressive trade since PTR gaps open (up and down) quite often as its price adjusts to trading back home overnight in China.

Trigger @ 118.75

- Suggested Positions -

buy the Sep $120 PUT (PTR1222u120) current ask $2.80

- or -

buy the Oct $115 PUT (PTR1220v115) current ask $2.70

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 125 thousand
Listed on September 01, 2012