NEW DIRECTIONAL CALL PLAYS

Rock-Tenn Company - RKT - close: 105.85 change: +2.13

Stop Loss: 103.45
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
RKT manufacturers consumer packaging products. The stock has spent the last several weeks consolidating sideways below resistance near the $104.00 level. Yet RKT managed to maintain the longer-term up trend of higher lows. Thursday's market rally pushed RKT to resistance right at the $104 level. Friday the stock displayed relative strength with a +2.0% gain and a breakout to new all-time highs.

I am suggesting a trigger to buy calls at $106.25. If triggered our target is $114.00. More nimble traders may want to consider trying to buy a dip near $104.50 since broken resistance near $104.00 should be new support.

Trigger @ 106.25

- Suggested Positions -

Buy the Jul $110 call (RKT1320G110) current ask $1.80

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 594 thousand
Listed on June 15, 2013


NEW DIRECTIONAL PUT PLAYS

Agrium Inc. - AGU - close: 88.80 change: -1.09

Stop Loss: 90.05
Target(s): 81.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
There is no clear trend for the fertilizer stocks but shares of AGU have been underperforming the market since its rally failed at resistance near $95.00 in late May. Now the stock is poised to breakdown from its $88-95 trading range. The May 2nd low was $87.92. I am suggesting a trigger to buy puts at $87.80. If triggered our target is $81.00.

FYI: AGU will begin trading ex-dividend on June 26th. The quarterly cash dividend should be 50 cents.

Trigger @ 87.80

- Suggested Positions -

Buy the Jul $85 PUT (AGU1320s85) current ask $1.45

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 744 thousand
Listed on June 15, 2013