NEW DIRECTIONAL CALL PLAYS

OpenTable, Inc. - OPEN - close: 67.73 change: +0.25

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
OPEN is an online reservation service for consumers to book a reservation at a restaurant. The stock has had a fabulous month of May with a rally from the $55 level to new 52-week highs. The breakout past resistance near $65.00 sparked some short covering. Traders bought the dip when OPEN retested this area near $65.00 and its rising 10-dma. If the rally continues OPEN could see another short squeeze. The most recent data listed short interest at 24% of the small 21 million-share float.

The last couple of days have seen OPEN hovering under the $68.00 level. Tonight we are suggesting a trigger to buy calls at $68.25. If triggered our target is $74.00.

NOTE: Keep in mind that OPEN is a volatile stock. Traders may want to limit their position size.

Trigger @ 68.25

- Suggested Positions -

buy the Jun $70 call (OPEN1322F70) current ask $2.00

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 823 thousand
Listed on May 25 2013


NEW DIRECTIONAL PUT PLAYS

Caterpillar Inc. - CAT - close: 86.21 change: -0.74

Stop Loss: 87.05
Target(s): 80.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of CAT look like they are in trouble. The bullish breakout in early May broke the February-April down trend. Yet the rally failed at resistance near $90.00 and its 100-dma in mid May. Traders bought the dip at its 50-dma a couple of weeks ago but the rebound is rolling over. This looks like a new, lower high. Once again CAT is testing support at its 50-dma.

The slowing economy in China and the recent bearish Fed surveys in the U.S. could spell trouble for CAT. If shares break support near their current levels we might see CAT retest its April lows.

Tonight we're suggesting a trigger to buy puts at $85.50. If triggered our target is $80.50. More conservative traders might want to wait for a drop below $85.00 as an alternative entry point since it's possible that $85.00 could be round-number support.

Trigger @ $85.50

- Suggested Positions -

buy the Jun $85 PUT (CAT1322R85) current ask $1.31

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 7.0 million
Listed on May 25 2013


Concur Technologies - CNQR - close: 81.96 change: -0.21

Stop Loss: 82.25
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:
CNQR provides solutions for travel and expense management. The company reported a bullish earnings report in early May. Earnings came in at 24 cents versus Wall Street's estimates of 16 cents. Management guided higher for its third quarter. It was a strong earnings report and the stock soared on the news. Shares rallied to new all-time highs.

We suspect that CNQR has moved too far too fast. The bullish market environment may have exaggerated the stock's valuations. Shares look ripe for a pullback.

We want to try and capture some of the profit taking so tonight we're suggesting a trigger to buy puts at $80.50. If triggered our target is $76.50, which is just above the 2012 highs, which may try and act as support.

Trigger @ $80.50

- Suggested Positions -

buy the Jun $80 PUT (CNQR1322R80) current ask $1.55

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 489 thousand
Listed on May 25 2013