NEW DIRECTIONAL CALL PLAYS

Johnson & Johnson - JNJ - close: 92.83 change: +0.26

Stop Loss: 91.49
Target(s): 98.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Healthcare giant JNJ has continued to show strength. The company reported earnings on July 16th and beat estimates by nine cents. Management then raised their 2013 guidance. Since the report JNJ has rallied to new all-time highs. The last few days have seen shares consolidate sideways but Friday's move looks like another rebound near its rising 10-dma and a potential entry point to hop on board.

Friday's high was $92.93. We are suggesting a trigger to buy calls at $93.05. If triggered our target is $98.00. We'll start with a stop loss at $91.49.

Trigger @ 93.05

- Suggested Positions -

Buy the Aug $92.50 call (JNJ1317H92.5) current ask $1.27

- or -

Buy the Sep $95 call (JNJ1321i95) current ask $0.76

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 9.0 million
Listed on July 27, 2013


V.F. Corp. - VFC - close: 199.09 change: +1.30

Stop Loss: 195.75
Target(s): 209.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VFC is in the consumer goods sector. The company makes apparel and footwear under several different brand names. The company reported earnings on July 19th. The results were mixed. Bottom line results beat estimates by 10 cents but the revenue number was a miss. Managed did issue positive guidance. Traders used the post-earnings dip to buy VFC near its trend line of higher lows (support). Now the stock is nearing round-number, psychological resistance at the $200 level.

The July highs have been in the $200.00-200.50 zone. Tonight we are suggesting a trigger to buy calls at $200.75. If triggered our target is $209.50. FYI: The Point & Figure chart for VFC is bullish with a $226 target.

Trigger @ 200.75

- Suggested Positions -

Buy the Aug $200 call (VFC1317H200) current ask $2.60

- or -

Buy the Sept $210 call (VFC1321i210) current ask $1.35

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 495 thousand
Listed on July 27, 2013