NEW DIRECTIONAL CALL PLAYS

HanesBrands Inc. - HBI - close: 50.88 change: +1.37

Stop Loss: 48.75
Target(s): 54.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HBI is in the consumer goods sector. The company makes a number of apparel products with several brands. The stock has been showing a lot of upward momentum. There have been minor corrections in February and mid April. Yet traders keep buying the dips. Now after consolidating sideways near round-number resistance at $50.00 the last few days HBI is breaking out to new historic highs.

I am suggesting new bullish positions now, at current levels. I am suggesting a stop loss at $48.75. Our target is $54.75. NOTE: HBI is scheduled to begin trading ex-dividend on May 16th. The quarterly cash dividend should be 20 cents.

- Suggested Positions -

buy the Jun $50 call (HBI1322F50) current ask $2.10

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 1.4 million
Listed on May 07 2013


WellPoint Inc. - WLP - close: 74.71 change: +1.20

Stop Loss: 73.35
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Any confusion or frustration with the implementation of Obamacare is not slowing down the healthcare stocks. Healthcare has actually been one of the best performing sectors this year. WLP is no exception. The stock has rallied to new 52-week highs. After consolidating near resistance at $74.00 for a few days the stock is breaking out.

Today's high was $75.04. I am suggesting a trigger to buy calls at $75.25. If triggered our target is $79.75.

Trigger @ 75.25

- Suggested Positions -

buy the Jun $75 call (WLP1322F75) current ask $1.71

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 2.0 million
Listed on May 07 2013