NEW DIRECTIONAL CALL PLAYS

Colfax Corp. - CFX - close: 50.77 change: +0.62

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CFX is in the industrial goods sector. There business operates in two segments: gas and fluid handling machinery and fabrication technology. The stock has recovered significantly off its April lows and now shares are breaking out past resistance at $50.00 to hit new all-time highs.

Seeing shares breakout higher while most of the market was slipping lower today is encouraging. Yet we want to see a little more follow through. Tonight we are suggesting a trigger to buy calls at $51.05. If triggered our short-term target is $55.00. FYI: The Point & Figure chart for CFX is bullish with a $62 target.

Trigger @ 51.05

- Suggested Positions -

buy the SEP $55 call (CFX1321i55) current ask $1.35

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 1.29 million
Listed on June 04, 2013


NEW DIRECTIONAL PUT PLAYS

VMware Inc. - VMW - close: 68.62 change: -0.78

Stop Loss: 70.55
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VMW is another cloud-computing play that appears to be losing to Amazon.com. The stock was crushed back in January 2013 when VMW issued an earnings warning. Now after bouncing around for four months the stock is just now breaking down below significant support at the $70.00 level.

Big picture if you look at a long-term target of VMW the stock has produced a huge top over the last two years. I suspect the long-term trend here is lower. Yet short-term we want to see some follow through. Yesterday's low was $67.93. I am suggesting a trigger to buy puts at $67.75. If triggered our target is $60.50. More aggressive traders may want to aim for the $50 area (give yourself enough time).

Trigger @ 67.75

- Suggested Positions -

Buy the Jul $65 PUT (VMW1320s65) current ask $2.10

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 2.58 million
Listed on June 04, 2013