NEW DIRECTIONAL CALL PLAYS

Panera Bread Co. - PNRA - close: 186.60 change: +1.82

Stop Loss: 199.00
Target(s): 183.95
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PNRA is a specialty restaurant and honestly one of my favorite places to eat. The stock broke out higher back in April after a five-month consolidation in the $155-170 zone. Traders bought the post-earnings dip at support and now the stock is breaking out to new all-time highs.

Given the market's momentum we could see PNRA testing the $200 area soon. Friday's breakout from its short-term sideways consolidation the last few days is another bullish signal. I'd like to see a little more follow through. Tonight I am suggesting small bullish positions if PNRA can trade at $187.00. If triggered at $187.00 our target is $199.00. FYI: The Point & Figure chart for PNRA is bullish with a $234 target.

Trigger @187.00 *Small Positions*

- Suggested Positions -

buy the Jun $190 call (PNRA1322F190) current ask $3.30

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 558 thousand
Listed on May 18 2013


Western Digital - WDC - close: 60.46 change: +1.41

Stop Loss: 58.95
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
In prior years many investors would equate WDC with desktop PCs and hard drives. It's widely known that the desktop PC industry is in decline as consumers move to tablets and smartphones. Fortunately, WDC has positioned itself in preparation of the desktop decline. According to the company's management, non-PC related business should account for more than 50% of revenues in 2013. This may be why shares of WDC are hitting new all-time highs, above their 1997 peak.

Friday's high was $60.48. I am suggesting a trigger to open small bullish positions at $60.65. If triggered our target is $64.75.

Trigger @ 60.65 *small positions*

- Suggested Positions -

buy the Jun $60 call (WDC1322F60) current ask $2.50

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 3.3 million
Listed on May 18 2013