NEW DIRECTIONAL CALL PLAYS

Cabela's Inc. - CAB - close: 61.45 change: +0.97

Stop Loss: 59.65
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The gun control debate currently raging across the U.S. is fueling strong gains for firearms and outdoor sports-related retailers like CAB. About three weeks ago CAB raised their earnings guidance and the stock surged to new all-time, historic highs, hitting $62.22 (intraday). Since then CAB has been consolidating sideways and digesting gains. Now CAB looks poised for another bullish breakout.

More aggressive traders could buy calls now. I am suggesting a trigger to buy calls at $62.35. If triggered our target is $67.50. FYI: The Point & Figure chart for CAB is bullish with a $79 target.

Trigger @ 62.35

- Suggested Positions -

buy the May $65 call (CAB1318E65) current ask $1.65

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 688 thousand
Listed on April 02, 2013


NEW DIRECTIONAL PUT PLAYS

CVR Energy, Inc. - CVI - close: 49.15 change: -2.73

Stop Loss: 51.65
Target(s): 45.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It was not a good day to be an energy stock or a fertilizer stock and CVI does both! Shares spiked up towards $53.00 and immediately reversed. The stock plunged through support near its 100-dma and the $50.00 mark. Today's breakdown could signal a drop toward the next level of support near $45.00.

I am suggesting small bearish positions now at current levels. We'll use a stop loss at $51.65. Our target is $45.25.

Keep position size small to limit risk.

- Suggested Positions -

buy the May $45 PUT (CVI1318Q45) current ask $1.30

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 538 thousand
Listed on April 02, 2013