NEW DIRECTIONAL CALL PLAYS

Infosys Ltd. - INFY - close: 49.46 change: +0.92

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: Unopened
Time Frame: about 2-to-3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
INFY is a major outsourcing firm based in India. The stock has recovered off its July lows and shares spent the last couple of weeks in September consolidating under resistance near $49 and its simple 200-dma. Now INFY is breaking out. We want to see confirmation of this move, especially with the $50.00 mark as potential round-number resistance.

I am suggesting a trigger to buy calls at $50.25. We'll start with a stop loss at $48.90. Our target is $54.85. FYI: The Point & Figure chart for INFY is bullish with a $72 target.

Trigger @ 50.25

- Suggested Positions -

buy the Oct $50 call (INFY1220j50) current ask $1.80

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 1.9 million
Listed on October 1, 2012


Onyx Pharma. - ONXX - close: 85.27 change: +0.77

Stop Loss: 82.90
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ONXX is a biotech firm that has been outperforming the market and is currently trading near all-time, record highs. We are suggesting an aggressive trade to buy calls now with ONXX still under short-term resistance near $86.00. More conservative traders will want to wait for a breakout past $86.00 or even a new high over $86.70 before initiating positions instead.

I am suggesting we keep our position size small to limit our risk. We'll start with a stop loss at $82.90. Our target is $89.50.

*Open Small Positions Now*

- Suggested Positions -

buy the Oct $90 call (ONXX1220j90) current ask $1.55

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 1.4 million
Listed on October 1, 2012