NEW DIRECTIONAL CALL PLAYS

Time Warner Cable - TWC - close: 99.70 change: -0.61

Stop Loss: 99.15
Target(s): 104.50
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to the Oct 31st earnings report.
New Positions: Yes, see below

Company Description

Why We Like It:
TWC provides cable, voice and Internet services in the U.S. The stock has been trending higher with a bullish pattern of higher lows and higher highs. Shares are currently testing round-number, psychological resistance at the $100 mark. Nimble traders might consider trying to buy a dip near its rising 20-dma and use a very tight stop loss. I am suggesting we open small bullish positions on a breakout higher. We'll use a trigger at $100.60. Our target is $104.50. This is a short-term trade. We want to exit prior to the earnings report on October 31st.

Trigger @ 100.60 *Small Positions*

- Suggested Positions -

buy the Nov $100 call (TWC1217k100) current ask $2.40

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 1.9 million
Listed on October 20, 2012


NEW DIRECTIONAL PUT PLAYS

The Mosaic Co. - MOS - close: 53.97 change: -0.72

Stop Loss: 55.05
Target(s): 48.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MOS is probably best known for manufacturing phosphates and potash for agricultural chemicals and fertilizers. The fertilizer industry has seen its stock prices trend lower after rival Potash Corp. (POT) recently cut its earnings forecasts.

Aggressive traders may want to buy puts now with the close under $54.00 in MOS. The Oct. 15th low was $53.53. I am suggesting a trigger to buy puts at $53.45. If triggered our target is $48.00 but I will warn you that the $50.00 level might be temporary support. I also want to caution you that MOS' rival POT reports earnings on Oct. 25th and POT's results could definitely influence trading in MOS.

Trigger @ 53.45

- Suggested Positions -

buy the NOV $55 PUT (MOS1217w55) current ask $2.19

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 3.9 million
Listed on October 20, 2012