NEW DIRECTIONAL CALL PLAYS

Abercombie & Fitch - ANF - close: 46.39 change: +1.07

Stop Loss: 44.49
Target(s): 49.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ANF is up four weeks in a row. Yet looking more closely at the past two weeks the stock has mostly been consolidating sideways and digesting gains. Traders bought the dip near round-number support/resistance at $45.00 this past week. Now ANF looks poised to rally toward $50.00.

I am suggesting new bullish positions at the open on Monday. Our short-term target is $49.85 since the $50.00 mark could be resistance. More aggressive traders may want to aim for the $53-55 zone instead.

- Suggested Positions -

buy the 2013 Jan $50 call (ANF1319a50) current ask $1.14

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 5.4 million
Listed on December 08, 2012


Linkedin Corp. - LNKD - close: 109.70 change: +0.65

Stop Loss: 107.45
Target(s): 117.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LNKD was hitting new highs in September with the stock trading near $125. Unfortunately the correction pulled shares all the way down to $95 before bouncing. LNKD has spent the last couple of weeks consolidating sideways below resistance at its 100-dma and the $110 level. Now the stock is poised to breakout and if that happens we could see LNKD surged toward $115 or $120 again.

I am suggesting a trigger to open bullish positions at $110.25. If triggered our target is $117.50. More conservative traders may want to exit in the $114-115 zone instead since $115 might be resistance.

LNKD can be volatile so I would use small positions to limit our risk.

Trigger @ 110.25 *Small Positions*

- Suggested Positions -

buy the Jan $115 call (LNKD1319a115) current ask $3.00

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on December 08, 2012


NEW DIRECTIONAL PUT PLAYS

Tiffany & Co - TIF - close: 58.42 change: -0.20

Stop Loss: 60.05
Target(s): 52.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Analysts are starting to worry that consumer spending this holiday season may not be as robust as previously expected. Over the past few years we've heard about how the high-dollar consumer has remain healthy. Yet TIF's sales growth is slowing down. Making matters worse for TIF shareholders the stock has a long-term trend of lower highs dating back to summer of 2011.

Right now TIF is holding above support near $58.00. Last week's low was $57.84. I am suggesting a trigger to buy puts at $57.75. If triggered our target is $52.50. Although I want to caution you that the $55.00 level is potential support. The Point & Figure chart for TIF is bearish with a $51 target.

Trigger @ 57.75

- Suggested Positions -

buy the Jan $55 PUT (TIF1319m55) current ask $1.03

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on December 08, 2012