NEW DIRECTIONAL CALL PLAYS

Costco Wholesale - COST - close: 111.09 change: +1.92

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
After a -6% correction it looks like investors are back to buying the dip in COST. This morning the company reported May same-store sales growth of +5.0%. That was above estimates for +4.4% growth. The stock is bouncing from technical support at its rising 50-dma.

I am suggesting small bullish positions if COST trades at $111.50 or higher. If triggered we'll use a stop loss at $108.80, just below the 50-dma. Our multi-week target is $118.50.

NOTE: The 10-dma could be resistance so more conservative traders may want to wait for a rally past $112.00 before initiating positions. FYI: The Point & Figure chart for COST is bullish with a $124 target.

Trigger @ 111.50 *Small Positions*

- Suggested Positions -

Buy the Jul $115 call (COST1320G115) current ask $1.16

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 2.0 million
Listed on June 06, 2013


Whirlpool Corp. - WHR - close: 122.88 change: +3.16

Stop Loss: 118.65
Target(s): 132.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WHR saw a -8% pullback from its closing high and a -10% correction from its intraday high just three weeks ago. Now investors are buying the dip near WHR's trend of higher lows. Today's session has created a bullish engulfing candlestick reversal pattern.

I am suggesting a trigger to buy calls at $123.35. If triggered our target is $132.00.

Trigger @ 123.35

- Suggested Positions -

Buy the Jul $125 call (WHR1320G125) current ask $4.65

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 826 thousand
Listed on June 06, 2013