NEW DIRECTIONAL CALL PLAYS

Medivation, Inc. - MDVN - close: 53.66 change: +0.28

Stop Loss: 49.95
Target(s): 57.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MDVN is a biotech firm. The stock has been channeling higher for months. Investors have consistently bought the dip at its rising 50-dma. Now MDVN is approaching this technical support.

There is no guarantee it will bounce this time but it has bounced off the 50-dma going back several months. The 50-dma is currently at $51.85. I am suggesting we buy calls on a dip at $52.50 and we'll use a stop loss at $49.95. We will plan to exit prior to the early November earnings report.

Trigger @ buy a dip at $52.50

- Suggested Positions -

Buy the Nov $55 CALL (MDVN1217K55) current ask $2.47

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 780 thousand
Listed on October 12, 2012


NEW DIRECTIONAL PUT PLAYS

Mosaic Co. - MOS - close: 54.15 change: -1.19

Stop Loss: 55.55
Target(s): 50.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MOS is a specialty chemical and fertilizer company. The company reported earnings a few days ago and missed both the top and bottom line estimates. MOS has spent the last few days consolidating sideways between support near $54 and resistance near $56. Now it appears that MOS is poised to breakdown.

I am suggesting a trigger at $53.90 to buy puts. Our initial target is $50.00 but more aggressive traders could aim lower.

Trigger @ 53.90

- Suggested Positions -

buy the Nov $52.50 PUT (MOS1217w52.5) current ask $1.22

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 4.2 million
Listed on October 12, 2012