NEW DIRECTIONAL CALL PLAYS

The Boeing Co. - BA - close: 93.74 change: +1.53

Stop Loss: 92.40
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of BA were languishing for months thanks to bad press about its brand new 787 planes being grounded for safety concerns over their battery system. Then shares of BA began to move in March. The rally has continued since. The Federal Aviation Administration (FAA) approved the new battery system for BA's 787s and the planes are returning to service. Meanwhile the company recently reported earnings. Results were in-line with estimates. Management announced that their backlog of business has hit record levels of $392 billion. That includes orders for 4,400 airplanes to be built.

BA is also benefiting from the rally in large cap stocks. Shares are now trading at new multi-year highs. I am suggesting a trigger to buy calls at $94.25. If triggered our target is $99.00.

Trigger @ 94.25

- Suggested Positions -

buy the Jun $95 call (BA1322F95) current ask $1.87

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 4.9 million
Listed on May 04 2013


Diageo Plc - DEO - close: 123.45 change: +0.64

Stop Loss: 121.45
Target(s): 129.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DEO is a global beverage giant with well known brand names like Crown Royal, Johnnie Walker, Smirnoff, Ketel One, Captain Morgan, and Jose Cuervo. The stock appears to be in a long-term up trend. DEO got a little ahead of itself in early April and a correction pulled shares back down from $127 to $120. Traders bought the dip multiple times in the $120 area, above the simple 100-dma, throughout the month of April.

Right now the stock is poised to breakout from its three-week trading range. I am suggesting a trigger to buy calls at $124.00. If triggered our target is $129.50. We want to keep our position size small because the bid/ask spread is a little wide.

FYI: That's not a typo. DEO closed at $123.45.

Trigger @ 124.00 *Small Positions*

- Suggested Positions -

buy the Jun $125 call (DEO1322F125) current ask $1.90

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 608 thousand
Listed on May 04 2013