NEW DIRECTIONAL CALL PLAYS

DaVita Healthcare - DVA - close: 127.60 change: +1.18

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DVA is in the specialized healthcare field providing services for patients needing kidney dialysis. It appears that after a three-week correction lower that shares of DVA are once again on the march higher. The stock produced a bullish reversal last Thursday. Since then DVA has broken through the three-week trend of lower highs and is about to breakout past short-term resistance near $128.00.

I am suggesting a trigger to launch small bullish positions at $128.05. If triggered our target is $134.00, which is an estimate based on DVA's bullish trend of higher highs. FYI: The Point & Figure chart for DVA is bullish with a $141 target.

Trigger @ 128.05, *small positions*

- Suggested Positions -

Buy the Jul $135 call (DVA1320G135) current ask $1.70

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 573 thousand
Listed on June 10, 2013


NEW DIRECTIONAL PUT PLAYS

Discovery Communications - DISCA - close: 74.35 change: -2.04

Stop Loss: 76.55
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DISCA is a media company that's probably best known for its Discovery channel, TLC, Animal Planet, and U.S. networks. After an impressive rally from its 2011 lows the stock appears to have topped out. DISCA has created a top over the last two and a half months. Now it's breaking down. Today's show of relative weakness looks like an entry point to buy puts.

I am suggesting a trigger to buy puts at $73.95. Our target is $68.50 but I will warn you that the $70.00 level could be round-number support and DISCA might bounce at $70.00. More conservative traders may want to exit near $70.00 instead.

Trigger @ 73.95

- Suggested Positions -

Buy the Jul $70 PUT (DISCA1320S70) current ask $0.95

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 1.4 million
Listed on June 10, 2013