NEW DIRECTIONAL CALL PLAYS

DSW Inc. - DSW - close: 66.92 change: +0.99

Stop Loss: 64.45
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to Oct 16th.
New Positions: Yes, see below

Company Description

Why We Like It:
DSW is a footwear retailer. After nearly five weeks of consolidating sideways the stock is starting to breakout to new all-time highs. The company is paying a special $2.00 dividend on October 26th to shareholders on record as of October 16th. We suspect that DSW will continue to rally up to this record date.

I am suggesting new bullish positions on Monday morning with a stop loss at $64.40. We will tentatively aim for $72.50 but I suspect the $70.00 level might offer some resistance. More conservative traders may want to exit in the $69.50-70.00 zone. We will plan on closing positions prior to Oct. 16th.

- Suggested Positions -

buy the Oct $70 call (DSW1220j70) current ask $0.55

- or -

buy the 2013 Jan $70 call (DSW1319a70) current ask $2.80

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 353 thousand
Listed on September 22, 2012


EQT Corp. - EQT - close: 58.25 change: +0.99

Stop Loss: 55.95
Target(s): 63.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EQT is an natural gas and oil company. They also provide natural gas to residential and commercial clients. Shares of EQT broke out to new multi-month highs a couple of weeks ago. Since then the stock has seen a pullback. We want to buy this new bounce.

I am suggesting small bullish positions at the open on Monday with a stop loss at $55.95. We will aim for $63.50.

- Suggested Positions -

buy the Oct $60 call (EQT1220j60) current ask $0.80

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on September 22, 2012


VMware, Inc. - VMW - close: 100.68 change: +0.93

Stop Loss: 97.45
Target(s): 108.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VMW is part of the cloud computing industry. The stock is breaking through round-number resistance at the $100 level. Traders just bought the dip near its 10-dma and 150-dma. VMW can be a volatile stock so we want to limit our position size to reduce our risk.

I am suggesting small bullish positions at the open on Monday with a stop loss at $97.45, which is under the Thursday low. Our target is $108.50.

- Suggested Positions -

buy the Oct $105 call (VMW1220j105) current ask $2.00

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on September 22, 2012