NEW DIRECTIONAL CALL PLAYS

Kimberly-Clark - KMB - close: 99.31 change: +0.84

Stop Loss: 97.25
Target(s): 104.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: Yes, see below

Company Description

Why We Like It:
KMB is in the consumer goods sector. More importantly the stock is viewed as more of a defensive play. If you noticed anything about the market's performance this past week it was the defensive stocks that outperformed. Traders bought the dip in KMB on Friday at short-term support on its rising 10-dma. Now the stock is poised to breakout past round-number, psychological resistance at the $100.00 mark.

I am suggesting a trigger to buy calls at $100.25. If triggered our target is $104.00. However, we will plan to exit prior to KMB's earnings report on April 19th.

Trigger @ 100.25

- Suggested Positions -

buy the May $100 call (KMB1318E100) current ask $1.90

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 2.3 million
Listed on April 06 2013


NEW DIRECTIONAL PUT PLAYS

Baidu, Inc. - BIDU - close: 83.59 change: -1.57

Stop Loss: 86.05
Target(s): 76.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Baidu is Google's (GOOG) main rival in China. While GOOG shares hit new all-time highs in March, shares of BIDU were hitting new multi-year lows. Investors are worried about increasing competition and the unhealthy decline in BIDU's revenues and profits.

The stock is sitting on its March lows. Further weakness could spark a drop toward $75.00. Friday's low was $82.98. I am suggesting a trigger to buy puts at $82.75. If triggered our target is $76.50. FYI: The Point & Figure chart for BIDU is bearish with a $60 target.

BIDU can be a volatile stock. Readers may want to limit their position size.

Trigger @ 82.75

- Suggested Positions -

buy the May $80 PUT (BIDU1318Q80) current ask $2.65

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 3.6 million
Listed on April 06 2013