NEW DIRECTIONAL CALL PLAYS

Home Depot - HD - close: 65.07 change: +0.83

Stop Loss: 62.90
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Hurricane Sandy may be old news for Wall Street but it could still be fueling sales for the likes of Home Depot. The stock has been showing relative strength and this week saw a rise to new multi-year highs.

I am suggesting a trigger to open new bullish positions at $65.35. If triggered our target is $69.50. The old highs were near $70.00, which is likely still resistance today.

Trigger @ 65.35

- Suggested Positions -

buy the 2013 Jan $65 call (HD1319a65) current ask $1.86

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 8.5 million
Listed on December 01, 2012


NEW DIRECTIONAL PUT PLAYS

Teradata Corp. - TDC - close: 59.48 change: -0.31

Stop Loss: 62.10
Target(s): 55.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market has seen a two-week bounce off its November lows. Shares of TDC are clearly not participating. This stock has broken down through multiple layers of support to hit new multi-month lows. The market is growing more and more worried that Amazon.com's new cloud computing division will take away TDC's market share.

I am suggesting new bearish positions now given the breakdown under $60.00. More conservative traders could wait for a new relative low (under $58.60). Our first target is $55.15. More aggressive traders could aim a lot lower. The Point & Figure chart for TDC is bearish with a $44 target.

- Suggested Positions -

buy the 2013 Jan $55 PUT (TDC1319m55) current ask $1.10

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 2.2 million
Listed on December 01, 2012