NEW DIRECTIONAL CALL PLAYS

Snap-on Inc. - SNA - close: 82.70 change: +1.01

Stop Loss: 80.90
Target(s): 88.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this tool maker have been trending higher with traders buying the dips over the last few weeks. The stock managed to end the quarter at a new all-time closing high. This is also a bullish breakout past resistance in the $82.50 area.

I'd like to see a little bit more follow through. Thursday's intraday high was $82.84. I am suggesting a trigger to buy calls at $83.00. If triggered our target is $88.50.

Trigger @ 83.00

- Suggested Positions -

buy the May $85 call (SNA1318E85) current ask $1.30

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 288 thousand
Listed on March 30, 2013


NEW DIRECTIONAL PUT PLAYS

CF Industries - CF - close: 190.37 change: -1.39

Stop Loss: 194.05
Target(s): 176.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CF is in the agricultural chemicals and fertilizer industry. The stock peaked in late January and early February of this year. The correction accelerated lower following CF's earnings report on February 20th where the company beat the bottom line estimate but missed the top line revenue estimate. The oversold bounce has failed and now CF sits on support near $190. You'll also notice on the weekly chart below that CF is poised to breakdown below a long-term trend line of support.

I do consider this an aggressive, higher-risk trade because CF can be a volatile stock. Tonight we're suggesting a trigger to buy puts at $188.75. If triggered our target is $176.00. More conservative traders may want to take profits early in the $181-180 zone instead. FYI: The Point & Figure chart for CF is bearish with a $144 target.

Trigger @ 188.75 *Small Positions*

- Suggested Positions -

buy the May $180 PUT (CF1318Q180) current ask $3.60

Annotated Chart:

Weekly Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.1 million
Listed on March 30, 2013