NEW DIRECTIONAL CALL PLAYS

The Fresh Market, Inc. - TFM - close: 54.54 change: +0.08

Stop Loss: 53.25
Target(s): 59.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to August option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
The Fresh Market is a specialty grocer that started in North Caroline and has now spread to 100 stores in over 20 states. Grocery names in general have been doing well this month. Shares of TFM have rallied four weeks in a row (so has the S&P 500). Now TFM is testing resistance near the $55.00 level.

We are suggesting a trigger to buy calls at $55.25. Our target is $59.50. However, we're only buying the August calls so we'll need to plan an exit prior to August expiration. TFM is expected to report earnings in late August. We also want to keep an eye on shares of Whole Foods (WFM). WFM is a rival grocer and WFM's earnings report on July 31st could have an influence on shares of TFM.

FYI: The Point & Figure chart for TFM is bullish with a $65 target.

Trigger @ 55.25

- Suggested Positions -

buy the Aug $55 call (TFM1317H55) current ask $1.50

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 469 thousand
Listed on July 20, 2013


NEW DIRECTIONAL PUT PLAYS

Questcor Pharma. - QCOR - close: 45.84 change: -1.12

Stop Loss: 47.01
Target(s): 42.25
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 30th
New Positions: Yes, see below

Company Description

Why We Like It:
Questcor Pharmaceuticals is in the biotech industry. Biotech stocks can be dangerous to trade because you never know when the next headline might send shares gapping up or down. QCOR is no different. Shares have definitely been volatile over the last couple of years. Plenty of investors are bearish. The most recent data listed short interest at 32% of the relatively small 48.6 million share float.

On a short-term basis QCOR has definitely been underperforming its peers in the biotech sector and the broader market. The stock had rallied up to resistance at $50.00 a few days ago but it promptly reversed. Now QCOR is down four days in a row. If this trend continues we could see it retest support near $42.00 or even the $40 area.

I do consider this an aggressive, higher-risk trade. Friday's low was $45.41. I am suggesting a trigger to buy puts at $45.30. You may want to wait for a drop under $45.00 instead. Our target is $42.25. We don't have much time. QCOR is scheduled to report earnings on July 30th and we do not want to hold over the announcement.

Trigger @ 45.30 *Small Positions*

- Suggested Positions -

buy the Aug $42 PUT (QCOR1317T42) current ask $1.70

Annotated Chart:

Weekly Chart:

Entry on July -- at $---.--
Average Daily Volume = 1.2 million
Listed on July 20, 2013