NEW DIRECTIONAL CALL PLAYS

Whole Foods Market - WFM - close: 100.45 change: -0.74

Stop Loss: 98.75
Target(s): 104.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WFM has been showing relative strength. Not only did it breakout past resistance near $100 last week but WFM also hit new record highs. Traders bought the dip this morning and WFM bounced back above the $100 level. We want to take advantage of the intraday rebound.

I am suggesting bullish positions at the open tomorrow with a relatively tight stop loss at $98.75. Our target is $104.75. FYI: The Point & Figure chart for WFM is bullish with a $137 target.

- Suggested Positions -

buy the Nov $105 call (WFM1211K105) current ask $2.34

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 1.3 million
Listed on October 8, 2012


NEW DIRECTIONAL PUT PLAYS

CACI Intl. - CACI - close: 49.69 change: -1.32

Stop Loss: 52.01
Target(s): 45.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CACI is in the technical services industry. They work within the information technology industry. The stock has been breaking down through multiple layers of support. The recent gap downs have been reactions to analyst downgrades. Friday saw the bounce fail at its 10-dma and today saw CACI close under round-number support at $50.00.

I am suggesting bearish positions at the open tomorrow. We'll use a stop loss at $52.01. Our target is $45.25. FYI: The Point & Figure chart for CACI is bearish with a $20 target.

- Suggested Positions -

buy the Nov $50 PUT (CACI1211w50) current ask $2.35

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 373 thousand
Listed on October 8, 2012