NEW DIRECTIONAL CALL PLAYS

American Tower Corp. - AMT - close: 76.67 change: +0.58

Stop Loss: 75.40
Target(s): 79.85 & 82.00
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 operating a wireless and broadcast infrastructure company. The stock has managed to build a long-term up trend over the last 18 months and now AMT is breaking out past resistance near $76.00 to hit new all-time record highs.

I want to see some confirmation. We'll use a trigger to buy calls at $77.05. If triggered we have two targets. Our first target to take profits is at $77.85. Our second, more aggressive target is $82.00 but AMT will have to rally past potential resistance at $80.00 first.

FYI: The Point & Figure chart for AMT is bullish with a triple-top breakout buy signal and an $88 target.

Trigger @ 77.05

- Suggested Positions -

buy the 2013 Jan $77.50 call (AMT1319a77.5) current ask $1.20

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 1.7 million
Listed on December 15, 2012


NEW DIRECTIONAL PUT PLAYS

Target Corp. - TGT - close: 60.50 change: -0.75

Stop Loss: 61.35
Target(s): 57.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of TGT topped out back in September. The stock has spent two months consolidating in the $61-64 zone but now TGT is breaking down. Shares have fallen to potential support at its 200-dma and the $60 level yet if this level fails the longer-term up trend will be broken.

I am suggesting a trigger to buy puts at $59.75 to catch a breakdown. If triggered our short-term target is only $57.00. More aggressive traders could aim lower.

Trigger @ 59.75

- Suggested Positions -

buy the 2013 Jan $60 PUT (TGT1319m60) current ask $1.14

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 5.0 million
Listed on December 15, 2012