NEW DIRECTIONAL CALL PLAYS

Check Point Software Tech. - CHKP - close: 50.00 change: +1.46

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CHKP is an Israeli software and technology company. The stock has been pushing higher since its October lows. Now shares have broken out past its 200-dma and CHKP is about to breakout past round-number resistance at the $50.00 mark.

I am suggesting small bullish positions if CHKP can trade at $50.25. If triggered our target is $54.50.

Trigger @ 50.25 *Small Positions*

- Suggested Positions -

buy the Mar $50 call (CHKP1316c50) current ask $1.60

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 2.7 million
Listed on January 31, 2012


NEW DIRECTIONAL PUT PLAYS

iShares DJ Transportation Avg.(ETF) - IYT - close: 103.05 chg: +0.26

Stop Loss: 105.05
Target(s): 98.25
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The IYT is an ETF based on the Dow Jones Transportation Average. The transports have gone too far too fast with a huge rally from its November lows to new record highs just a few days ago. Now the sector and index is ripe for profit taking. Naturally there is no guarantee the profit taking will happen right now but it looks like the pullback has already started.

I am suggesting positions now at current levels. More conservative traders could wait for a new drop under $102.45 instead. We'll use a stop loss at $105.05. Our target is $98.25.

I expect this to be a short-term trade so we will list February puts but I'm listing March puts as well.

- Suggested Positions -

buy the Feb $102 PUT (IYT1316n102) current ask $1.05

- or -

buy the Mar $102 PUT (IYT1316o102) current ask $2.10

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 683 thousand
Listed on January 31, 2012