NEW DIRECTIONAL CALL PLAYS

DaVita Inc. - DVA - close: 103.61 change: +1.21

Stop Loss: 99.90
Target(s): 108.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DVA is in the health services business. After spending weeks consolidating sideways in the $95-100 zone the stock is breaking out higher. Shares ended the quarter just under its high set three weeks ago near $104. We suspect DVA will see a dip first before tagging new highs.

I am suggesting a buy-the-dip entry point to buy calls at $102.50. We'll use a stop loss at $99.90. FYI: The Point & Figure chart for DVA is bullish with a $141 target.

Trigger @ 102.50

- Suggested Positions -

buy the Oct $105 call (DVA1220j105) current ask $1.65

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 881 thousand
Listed on September 29, 2012


NetSuite Inc. - N - close: 63.80 change: +0.96

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NetSuite is a cloud-computing and software company. The stock has been successful with shares hitting new record highs. We think the trend continues but we want to buy a dip.

I am suggesting we buy calls on a pullback at $62.50. We'll use a stop loss at $59.75. Our multi-week target is $67.50. FYI: The Point & Figure chart for N is bullish with an $82 target.

Trigger @ 62.50

- Suggested Positions -

buy Oct $65 call (N1220j65) current ask $1.55

- or -

buy Nov $65 call (N1217k65) current ask $3.60

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 565 thousand
Listed on September 29, 2012


NEW DIRECTIONAL PUT PLAYS

Tech Data Corp. - TECD - close: 45.25 change: -0.95

Stop Loss: 46.30
Target(s): 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TECD is a wholesales for computer and peripherals. Shares have been seriously underperforming the market these last two weeks. The stock has plunged to new 2012 lows. A breakdown under $45.00 would produce a brand new quadruple bottom breakdown sell signal on the point & figure chart.

I am suggesting a trigger to buy puts at $44.90. If triggered our target is $42.00. I would keep our position size small to limit our risk.

Trigger @ 44.90 *Small Positions*

- Suggested Positions -

buy Nov $45 PUT (TECD1211w45) current ask $1.75

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 333 thousand
Listed on September 29, 2012