NEW DIRECTIONAL CALL PLAYS

Green Mountain Coffee Roasters - GMCR - close: 49.18 chg: +0.77

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Traders have continued to buy the dips in coffee stock GMCR. Now shares are nearing significant round-number, psychological resistance at the $50.00 mark. A breakout past $50.00 could spark some serious short covering. The most recent data listed short interest at 37% of the 129 million share float.

I am suggesting a trigger to buy calls at $50.25. If triggered our short-term target is $54.75. More aggressive traders could aim for the $58.50-60.00 zone instead.

Trigger @ $50.25

- Suggested Positions -

buy the Apr $55 call (GMCR1320d55) current ask $0.98

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 5.3 million
Listed on March 06, 2012


Onyx Pharmaceuticals - ONXX - close: 80.02 change: +1.26

Stop Loss: 77.75
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The biotech sector is soaring with both the IBB biotech ETF and BTK biotech index hitting new highs. Obviously ONXX has been lagging behind its peers but shares have definitely turned bullish in just the last few days. Now ONXX is poised to breakout past resistance near the $80.00 level.

Trading biotech stocks always carries a bit of danger. You never know when the wrong headline can send a stock gapping lower (or higher). Therefore I am suggesting small positions to try and limit our risk. We're suggesting a trigger to buy calls at $80.30. If triggered our target is $84.85. More aggressive traders could certainly aim higher.

FYI: If you're curious the big surge higher on Feb. 22nd was a reaction to ONXX's earnings report. The company reported an earnings loss of 36 cents a share, which was actually 40 cents better than expected.

The Point & Figure chart for ONXX is bullish with a $95 target.

Trigger @ $80.30 *Small Positions*

- Suggested Positions -

buy the Apr $82.50 call (ONXX1320d82.5) current ask $2.20

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.3 million
Listed on March 06, 2012