NEW DIRECTIONAL CALL PLAYS

The Home Depot - HD - close: 67.32 change: +0.94

Stop Loss: 65.80
Target(s): 69.90
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on Feb. 26th
New Positions: Yes, see below

Company Description

Why We Like It:
Home improvement giant HD is seeing a rebound. The stock hit 12-year highs in late January. Since then HD pulled back to the $66 level. Now it's starting to bounce. We want to hop on board. However, this may be a short trip. The stock could have resistance at the $70.00 level, which was resistance way back in the year 2000. Plus, we plan to exit prior to the company's earnings report on Feb. 26th.

I am suggesting new bullish positions at the open tomorrow. We'll use a sotp loss at $65.80. Our immediate target is $69.90 but we may adjust that down the road.

- Suggested Positions -

buy the Mar $70 call (HD1316c70) current ask $0.59

Annotated Chart:

Entry on February 13 at $---.--
Average Daily Volume = 5.9 million
Listed on February 12, 2012


NEW DIRECTIONAL PUT PLAYS

SBA Communications - SBAC - close: 68.27 change: -1.01

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on Feb. 21
New Positions: Yes, see below

Company Description

Why We Like It:
SBAC owns and operates wireless communication towers across north and central America. Now, after an incredible rally from its 2011 lows the stock appears to have finally run out of fuel. The stock is down two weeks in a row and this week is setting up for another decline. SBAC has broken down below its 50-dma and recent price support near $69.00.

I am suggesting new bearish positions now. Our target is $63.50 although more conservative traders may want to exit near $65.00. Bear in mind that we will exit before the company's earnings report on Feb. 21st if SBAC has not hit our exit by then.

- Suggested Positions -

buy the Mar $65 PUT (SBAC1316o65) current ask $0.55

Annotated Chart:

Entry on February 13 at $---.--
Average Daily Volume = 131 thousand
Listed on February 12, 2012