NEW DIRECTIONAL CALL PLAYS

Domino's Pizza - DPZ - close: 59.79 change: +0.51

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DPZ is a bullish momentum trade. Traders continue to buy the dips and now DPZ is hitting new all-time highs. The stock saw a surge of volume at the close today since DPZ will become part of the S&P 400 midcap index tomorrow morning.

Currently DPZ is hovering just below round-number resistance at the $60.00 level. The high on Tuesday as $60.21. I am suggesting a trigger to buy calls at $60.30. If triggered our target is $64.75. However, I am suggesting that investors keep their position size small. You could easily argue that DPZ is overbought but there is nothing to stop it from growing even more overbought.

FYI: DPZ will begin trading ex-dividend on June 12th. The cash dividend should be about 20 cents.

Trigger @ 60.30 *Small Positions*

- Suggested Positions -

buy the Jul $60 call (DPZ1320G60) current ask $2.15

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 733 thousand
Listed on May 30, 2013


NEW DIRECTIONAL PUT PLAYS

CARBO Ceramics - CRR - close: 68.70 change: -0.72

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CRR is in the oil & gas services industry. The stock crashed back in late April after the company missed both the top and bottom line earnings and revenue estimates. Since then shares have been consolidating sideways along new support in the $68.00 area. CRR tried to rally on May 20th but traders quickly sold into strength.

Currently CRR is moving lower and looks like it might break down below support near $68.00. A breakdown from this five-week consolidation could signal a drop toward the October 2012 lows.

The late April low was $67.68. I am suggesting a trigger to buy puts at $67.65. If triggered we do want to keep our position size small. The most recent data listed short interest at 33% of the very small 19.8 million share float. That does raise the risk of a short squeeze but the last squeeze attempt (May 20th) didn't last very long.

Trigger @ 67.65 *small positions*

- Suggested Positions -

buy the Jun $65 PUT (CRR1322R65) current ask $0.90

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 266 thousand
Listed on May 30, 2013