NEW DIRECTIONAL CALL PLAYS

Concur Technologies - CNQR - close: 69.78 change: +0.85

Stop Loss: 68.40
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the late January earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Concur Technologies produces travel and expense management solutions. The stock has recovered from its September-November correction. Now shares are consolidating just underneath resistance at the $70.00 level. A breakout here could signal a run at its 2012 highs near $76.00.

I am suggesting a trigger to buy calls at $70.25. If triggered our short-term target is $74.50. We do not want to hold over the late January earnings report. FYI: The Point & Figure chart for CNQR is bullish with an $81 target.

Trigger @ 70.25

- Suggested Positions -

buy the Feb $70 call (CNQR1316B70) current ask $3.10

Annotated Chart:

Entry on January xx at $ xx.xx
Average Daily Volume = 462 thousand
Listed on January 05, 2012


The Travelers Companies - TRV - close: 74.06 change: +0.64

Stop Loss: 72.85
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Jan. 22nd
New Positions: Yes, see below

Company Description

Why We Like It:
TRV is in the property and casualty insurance industry. The industry saw its losses surge to $160 billion in 2012 thanks in large part to the massive Hurricane Sandy that hit the east coast. Yet investors are undaunted and have been buying dips in shares of TRV.

The stock's long-term trend is up and now TRV is poised to breakout to new highs. I am suggesting a trigger to buy calls at $74.60. More conservative traders may want to wait for a breakout past the $75.00 level instead. If triggered our target is $79.00 but we may have to abandon this play early to exit prior to earnings.

FYI: The Point & Figure chart for TRV is bullish with an $82 target. It's also poised to produce a brand new triple-top breakout buy signal soon.

Trigger @ 74.60

- Suggested Positions -

buy the Feb $75 call (TRV1316B75) current ask $1.25

Annotated Chart:

Entry on January xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on January 05, 2012