NEW DIRECTIONAL CALL PLAYS

Commvault Sys. - CVLT - close:

Stop Loss: 53.90
Target(s): 59.85
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CVLT is a technology and software company. Shares recently broke out to new all-time highs past resistance at the $55 level. Now prior resistance at $55 should be new support. We want to take advantage of this pullback in CVLT and buy calls now. I am suggesting positions at the open tomorrow with a stop loss at $53.90. More nimble traders might want to try and buy calls on a dip closer to the $55.00 mark instead. Our exit target is $59.85. More aggressive traders could aim higher.

- Suggested Positions -

buy the Oct $60 Call (CVLT1220j60) current ask $1.40

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 427 thousand
Listed on September 19, 2012


Watson Pharmaceuticals - WPI - close: 83.73 change: +0.80

Stop Loss: 82.75
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:
WPI is a drug maker. The stock has been churning in the $81-84 zone for about four weeks now. The $84 level is a record high for the stock. I am suggesting a trigger to buy calls at $84.25. If triggered our target is $88.50.

FYI: The Point & Figure chart for WPI is bullish with a long-term $105 target.

Trigger @ 84.25

- Suggested Positions -

buy the Oct $85 call (WPI1220j85) current ask $1.40

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on September 19, 2012