NEW DIRECTIONAL CALL PLAYS

American Tower Corp. - AMT - close: 75.24 change: +1.47

Stop Loss: 73.95
Target(s): 79.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AMT is a REIT that operates as a wireless and broadcast communications infrastructure company. Not only does the stock have a long-term up trend but shares were bucking the market's down trend today. Shares were showing relative strength and are poised to hit new record highs.

The early October high was $76.22. I am suggesting a trigger to buy calls at $76.25. Our target is $79.85. More aggressive traders could aim higher.

Trigger @ 76.25

- Suggested Positions -

buy the DEC $77.50 call (AMT1222L77.5) current ask $1.30

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on November 7, 2012


NEW DIRECTIONAL PUT PLAYS

Dow Jones Industrial Average (ETF) - DIA - close: 129.25 change: -2.80

Stop Loss: 131.10
Target(s): 125.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The DIA, also known as the "Diamonds" is an ETF that reflects the Dow Jones Industrial Average. The market's reaction to the election results was bearish. The DIA has broken down under key support near $130 and its 200-dma. I am suggesting new bearish positions at the open tomorrow. We will target $125.25 with a stop above today's high.

- Suggested Positions -

buy the DEC $125 PUT (DIA1222x125) current ask $1.72

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 5.3 million
Listed on November 7, 2012


iShares Russell 2000 ETF - IWM - close: 80.34 change: -2.00

Stop Loss: 81.40
Target(s): 75.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The market is breaking down to new relative lows. If this trend continues then the small caps are likely to underperform the big caps. The small cap Russell 2000 index and the ETF that follows it (the IWM) have reversed and are testing major support near 800 (and $80).

Today's low on the IWM was $79.91. I am suggesting a trigger to buy puts at $79.85. If triggered our target is $75.50.

Trigger @ 79.85

- Suggested Positions -

buy the 2013 Jan $75 PUT (IWM1319m75) current ask $1.49

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 36 million
Listed on November 7, 2012