NEW DIRECTIONAL CALL PLAYS

Monster Beverage - MNST - close: 61.90 change: +0.53

Stop Loss: 60.90
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:
Wall Street appears to have lost its fears that MNST's high-caffeine drinks were killing people. That was the accusation last year and helped spark the sharp sell-off in shares of MNST. Bears were arguing that the FDA could crack down on MNST's highly caffeinated beverages. MNST claims they're no different than a large coffee from Starbucks (SBUX). Right now shares of MNST are showing relative strength. The stock's recent breakout past resistance at $60.00 is bullish and MNST has been holding recent gains in spite of the market's pullback this week.

I do consider this a more aggressive, higher-risk trade since shares of MNST can be volatile. Tonight I am suggesting we use a trigger to launch small bullish positions at $62.65. If triggered our target is $68.50. FYI: The Point & Figure chart for MNST is bullish with a $76 target.

Trigger @ 62.65 *Small Positions*

- Suggested Positions -

Buy the Jul $65 call (MNST1320G65) current ask $1.70

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 2.1 million
Listed on June 12, 2013


NEW DIRECTIONAL PUT PLAYS

eBay Inc. - EBAY - close: 50.75 change: -1.30

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It looks like shares of EBAY, the online auction behemoth, could be in trouble. The stock peaked back in April near $58.00. If you take a broader look at the stock's performance EBAY appears to be forming a bearish head-and-shoulders pattern that could forecast a drop toward $42.00.

EBAY's recent bounce attempt failed at technical resistance and now it has broken down below its 200-dma. More aggressive traders may want to buy puts now. I am suggesting a trigger to buy puts at $49.85. If triggered our target is $45.50. FYI: The Point & Figure chart for EBAY is bearish with a $44 target.

Trigger @ 49.85

- Suggested Positions -

Buy the Jul $50 PUT (EBAY1320s50) current ask $1.80

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 10.7 million
Listed on June 12, 2013