NEW DIRECTIONAL CALL PLAYS

Cameron Intl. Corp. - CAM - close: 64.09 change: +0.13

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CAM is in the oil services industry. The company reported a disappointing earnings result back in April and management guided lower. Yet investors bought the news anyway. The stock has seen a rocky ride since then but traders keep buying dips to the long-term trend of higher lows.

Today CAM was showing relative strength and eked out a gain. The May 21st high was $65.51. I am suggesting a trigger to buy calls at $65.60. More conservative traders will want to seriously consider waiting for a breakout past $66.00 instead (or even a close above $66.00) since the $66 level could also be resistance. If triggered our short-term target is $69.75. FYI: The Point & Figure chart for CAM is bullish with a $76 target.

Trigger @ 65.60

- Suggested Positions -

Buy the Jul $65 call (CAM1320G65) current ask $1.60

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 1.6 million
Listed on June 19, 2013


Green Mtn Coffee Roasters - GMCR - close: 81.78 change: +2.48

Stop Loss: 78.99
Target(s): 95.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GMCR is a specialty coffee maker that make the single-serving K-cup products popular. Traders have been consistently buying the dips since the late May correction down to $70.00. The $81.70 level was tough resistance back in May and shares managed to breakout past that mark today while the rest of the market was sinking.

GMCR can be a volatile stock so we do want to keep our position size small to limit risk. Today's move is a bullish breakout to new 52-week highs. If the rally continues GMCR could see a short squeeze. The most recent data listed short interest at 33% of the 129 million share float.

I am suggesting a trigger to buy calls at $83.05. If triggered our multi-week target is $95.00. FYI: The Point & Figure chart for GMCR is bullish with a $105 target.

Trigger @ $83.05 *Small Positions*

- Suggested Positions -

Buy the Jul $85 call (GMCR1320G85) current ask $2.44

- or -

Buy the Aug $90 call (GMCR1317H90) current ask $4.25

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 3.3 million
Listed on June 19, 2013