NEW DIRECTIONAL CALL PLAYS

The Hain Celestial Group, Inc. - HAIN - close: 73.85 change: +1.08

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to August expiration
New Positions: Yes, see below

Company Description

Why We Like It:
HAIN is in the consumer goods sector. The company manufacturers a wide variety of grocery products. The market's recent rally really gave shares of HAIN a big boost. So big that HAIN surged from $63 near its late June lows to almost $76 last week. Part of that move could have been driven by short covering. The most recent data listed short interest at 20% of the relatively small 38.6 million share float.

The shorts might be ready to cover again. After a brief, two-day pullback traders are already buying the dip. HAIN outperformed the broader market today. Monday's high was $74.30. I am suggesting a trigger to launch small bullish positions at $74.40. If triggered our target is $79.50.

FYI: The Point & Figure chart for HAIN is bullish with a $99 target.

Trigger @ 74.40

- Suggested Positions -

Buy the Aug $75 call (HAIN1317H75) current ask $1.50

Chart:

Entry on July -- at $---.--
Average Daily Volume = 420 thousand
Listed on July 22, 2013


NEW DIRECTIONAL PUT PLAYS

SPDR S&P 500 ETF - SPY - close: 169.50 change: +0.33

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market's four-week rally has been impressive. The fact that investors continue to ignore disappointing economic data, earnings warnings and misses, and just keep buying stocks is impressive. However, eventually stocks will correct. Odds are growing that once the S&P 500 index touches the psychological level at the 1700 mark it could spark some profit taking.

This is a short-term trade. The high today on the SPY was $169.74. We are suggesting a trigger to buy puts at $169.90. If triggered we'll use a stop loss at $172.75. Our initial target is $165.25.

NOTE: There are a lot of different option symbols for the SPY. Make sure you get the right one. We're choosing the regular August $170 put that expires on the 17th.

Trigger @ 169.90

- Suggested Positions -

Buy the Aug $170 PUT (SPY1317T170) current ask $2.14

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 123 million
Listed on July 22, 2013