NEW DIRECTIONAL CALL PLAYS

Ameriprise Financial - AMP - close: 84.92 change: +1.34

Stop Loss: 83.25
Target(s): 89.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on July 24th
New Positions: Yes, see below

Company Description

Why We Like It:
The financial sector continues to be one of the market's best performing groups. The recent strength has helped lift AMP to new all-time highs. Shares just broke out past resistance near its June highs. Now it sits at the $85.00 level, which could be round-number resistance.

I am suggesting a trigger to buy calls at $85.25. If triggered our target is $89.25. However, we will plan to exit prior to the earnings report on July 24th.

Trigger @ 85.25

- Suggested Positions -

Buy the Aug $85 call (AMP1317H85) current ask $2.85

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 1.25 million
Listed on July 09, 2013


NEW DIRECTIONAL PUT PLAYS

Varian Medical Sys. - VAR - close: 66.30 change: -1.90

Stop Loss: 66.60
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 24th
New Positions: Yes, see below

Company Description

Why We Like It:
VAR is in the healthcare sector. Unfortunately for VAR the stock has been underperforming both the healthcare sector and the broader market for a while now. The stock has a bearish trend of lower highs that dates back to early 2013. Shares have spent the last couple of weeks churning between its simple 300-dma near $65.65 and its simple 200-dma overhead. Today's session saw shares fail at resistance at the 200-dma and immediately plunge to the 300-dma. I suspect we could see VAR breakdown out of this range and resume the down trend.

We're suggesting small bearish positions if VAR can trade at $65.40. If triggered our target is $61.00. Keep a wary eye on the April 2013 low of $63.10. It could be support.

Trigger @ 65.40

- Suggested Positions -

Buy the Aug $65 PUT (VAR1317T65) current ask $2.00

Annotated Chart:

Weekly Chart:

Entry on July -- at $---.--
Average Daily Volume = 716 thousand
Listed on July 09, 2013