NEW DIRECTIONAL CALL PLAYS

Whirlpool Corp. - WHR - close: 119.29 change: +1.54

Stop Loss: 115.75
Target(s): 128.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of appliance maker WHR tend to be influenced by housing data. Strong home sales usually means strong appliance sales as new home owners move in or upgrade. Right now shares of WHR have been showing strength. The stock has rallied to a new all-time high. The $118.00 are was resistance for several years. A breakout past round-number resistance at $120.00 could herald the next leg higher.

I am suggesting a trigger to buy calls at $120.25. If triggered our multi-week target is $128.50.

Trigger @ 120.25

- Suggested Positions -

buy the Apr $125 call (WHR1320D125) current ask $1.81

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.4 million
Listed on March 11, 2012


NEW DIRECTIONAL PUT PLAYS

Vitamin Shoppe, Inc. - VSI - close: 50.62 change: -1.28

Stop Loss: 51.55
Target(s): 45.50
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 few weeks for shares of VSI. The company reported earnings on Feb. 26th and the market was not happy with its revenue miss. Concerns over slowing growth and management warning that its recent acquisition would cut into earnings sparked a sell-off. VSI plunged almost -20% on Feb. 26th. That was the biggest one-day loss since VSI came public back in 2009.

Since then the oversold bounce has failed at resistance (old support) near $54.00. Now VSI looks poised to breakdown below round-number support at the $50.00 mark. I will warn you that the most recent data does list short interest at 15% of the small 28.5 million share float. That probably raises the risk of a short squeeze so readers may want to limit their position size.

I am suggesting a trigger to buy puts at $49.75. If triggered our target is $45.50.

Trigger @ 49.75

- Suggested Positions -

buy the Apr $50 PUT (VSI1320P50) current ask $2.00

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 736 thousand
Listed on March 11, 2012