NEW DIRECTIONAL CALL PLAYS

FedEx Corp. - FDX - close: 107.33 change: +0.91

Stop Loss: 105.75
Target(s): 112.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This is a bullish momentum trade. The transportation average continues to defy gravity and hit another new all-time high today. Shares of FDX are following the sector high and closed at new five-year highs. The stock looks poised to breakout from its recent sideways consolidation.

I am suggesting we open small bullish positions if FDX can trade at $107.75 or higher. If triggered our target is $112.50 but there is a possibility that the $110 level will be resistance.

NOTE: After the closing bell tonight FDX announced it will take a cash charge in the $550 million to $650 million over the next two quarters to account for U.S. employees accepting a voluntary buyout offer that expires in May.

Trigger @ 107.75

- Suggested Positions -

buy the Mar $110 call (FDX1316c110) current ask $0.78

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 2.2 million
Listed on February 19, 2012


NEW DIRECTIONAL PUT PLAYS

Capital One Financial - COF - close: 53.12 change: -0.91

Stop Loss: 54.55
Target(s): 48.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It has been a rough February for shares of COF. The stock reversed under the $58 level several days ago. Since then COF has sliced through potential support. On Friday the stock underperformed after the company released its monthly credit card metrics. COF saw an unexpected drop in the size of its credit card loan portfolio and a higher month over month delinquency rate in January. Then today the market was not happy with the news that COF was selling off its Best Buy private label and co-branded credit division to Citigroup (C) for $7 billion.

Shares are arguably short-term oversold already but the trend is definitely down. I am suggesting small bearish put positions now at the open tomorrow. We'll use a stop loss at $54.55. Our target is $48.50 but watch out for potential round-number support at the $50.00 mark.

- Suggested Positions - *Small Positions*

buy the Mar $52.50 PUT (COF1316o52.5) current ask $0.95

Annotated Chart:

Entry on February 20 at $---.--
Average Daily Volume = 5.9 million
Listed on February 19, 2012