NEW DIRECTIONAL CALL PLAYS

Computer Sciences Corp. - CSC - close: 49.85 change: +0.50

Stop Loss: 48.40
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:
CSC is in the information technology and professional services business, catering to government and commercial clients. The stock has been showing relative strength and has rallied to new 52-week highs. CSC currently sits just below round-number resistance at the $50.00 mark.

I am suggesting a trigger to buy calls at $50.25. If triggered our target is $54.50.

FYI: The Point & Figure chart for CSC is bullish with a $59 target. Plus, CSC's next dividend (20 cents) is payable on April 15, 2013 to shareholders on record as of March 18th.

Trigger @ 50.25

- Suggested Positions -

buy the Apr $50 call (CSC1320d50) current ask $1.40

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.6 million
Listed on March 07, 2012


NEW DIRECTIONAL PUT PLAYS

Quest Diagnostic - DGX - close: 55.42 change: -0.92

Stop Loss: 56.25
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DGX provides medical diagnostic testing services. The stock has been underperforming since the company reported earnings on January 23rd. Now DGX has developed a bearish pattern of lower highs and lower lows. The stock just saw its bounce fail near short-term resistance at $57.00.

The Feb. 26th low was $55.16. I am suggesting a trigger to open bearish positions at $54.85, so about 30 cents under that low. If triggered our target is $51.00. More aggressive traders could aim lower. FYI: The Point & Figure chart for DGX is bearish with a $50 target.

Trigger @ 54.85

- Suggested Positions -

buy the Apr $55 PUT (DGX1320p55) current ask $1.50

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.2 million
Listed on March 07, 2012