NEW DIRECTIONAL CALL PLAYS

Aegerion Pharma. - AEGR - close: 74.00 change: +1.07

Stop Loss: 71.90
Target(s): 84.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AEGR is a biotech stock. What makes AEGR attractive is that shares did not react much to the market's or the biotech sector's recent pullback. Instead shares of AEGR have continued to melt up.

This is an aggressive, higher-risk trade. Shares of AEGR have been volatile over the last few weeks. I am suggesting small bullish positions if AEGR can hit a new high. This past week saw two intraday spikes to $75.70. We are suggesting a trigger to buy calls at $75.75. If triggered our target is $84.00. More aggressive traders may want to aim higher. New highs could spark another short squeeze. The most recent data listed short interest at 15% of the small 24.3 million share float. FYI: The Point & Figure chart for AEGR is bullish with a $102 target.

Trigger @ 75.75 *Small Positions*

- Suggested Positions -

Buy the Jul $80 call (AEGR1320G80) current ask $4.40

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 980 thousand
Listed on June 08, 2013


NEW DIRECTIONAL PUT PLAYS

iShares Russell 2000 - IWM - close: 98.20 change: +0.75

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Stocks looked bullish on Friday with the widespread bounce in reaction to the jobs number. Yet the rally stalled at the short-term trend line of lower highs. If you're bullish on the market you could argue that the major indices have been building a bull-flag pattern. That could be true but the major indices have yet to breakout from these flag patterns. There is also a chance that the correction is not over yet. We want to be ready if the market surprises traders and moves lower.

The Friday afternoon low on the IWM was about $97.60. We are suggesting a trigger to launch small bearish positions if the IWM trades at $97.45. If triggered we will start this trade with a stop loss at $100.65. More conservative traders may want to choose a tighter stop loss (maybe just above the 98.50 level instead). Our target is the rising 100-dma. Currently the 100-dma is at $93.15. We will temporarily set our exit target at $93.50.

Trigger @ 97.45 *Small Positions*

- Suggested Positions -

Buy the Jul $95 PUT (IWM1320S95) current ask $1.68

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 43 million
Listed on June 08, 2013