NEW DIRECTIONAL CALL PLAYS

Stericycle, Inc. - SRCL - close: 95.76 change: +1.00

Stop Loss: 93.60
Target(s): 99.75 or $104.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SRCL soared from the bottom of its trading range near $90 to the top of its range near $95 on better than expected earnings results back on Oct. 25th. Since then shares have consolidated sideways. Now the stock is breaking out and set a new all-time closing high today.

I am suggesting new bullish positions tomorrow morning. Nimble traders may choose to wait and try and buy a dip near $95.00. More cautious traders could wait for a rise past $96.00 as their entry point instead. Please note that I am setting two exit targets. Our conservative exit target is $99.85 since the $100.00 level could be round-number, psychological resistance. Our more aggressive, longer-term target is $104.00.

- Suggested Positions -

buy the DEC $100 call (SRCL1222L100) current ask $0.85

Annotated Chart:

Entry on November 2 at $ xx.xx
Average Daily Volume = 509 thousand
Listed on November 1, 2012


Wynn Resorts - WYNN - close: 122.90 change: +1.84

Stop Loss: 117.75
Target(s): 129.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WYNN has been showing relative strength the last couple of days. The spike higher today was impressive considering news that gambling revenues for the Macau region is slowing down. According to gambling regulators revenues for Macau casinos in October were positive but down sharply from a year ago. This news does not seem to worry traders in WYNN. The stock has broken out to new multi-month highs.

I would be tempted to buy calls now in WYNN. However, WYNN's rival, Las Vegas Sands (LVS), reported earnings tonight after the closing bell and missed earnings estimates by 15 cents. LVS also missed the revenue number. Yet shares of LVS are not seeing much selling pressure in after hours markets tonight. I still suspect that LVS and WYNN might see a little profit taking tomorrow morning.

I am suggesting we buy calls on WYNN on a dip at $121.25. We'll use a stop loss at $117.75. WYNN can be a volatile stock so I am suggesting we keep our position size small to limit our risk.

Trigger @ 121.25

- Suggested Positions -

buy the DEC $125 call (WYNN1222L125) current ask $3.70

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on November 1, 2012