NEW DIRECTIONAL CALL PLAYS

Capital One Financial - COF - close: 69.70 change: +0.98

Stop Loss: 68.25
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
COF's recent earnings report was July 18th. The results were better than expected on both the top and bottom line. The news helped send shares higher the next day and COF tagged the $70.00 level and a new multi-year high on the 19th. Since then COF has been consolidating sideways and digesting its gains. Given the bullish trend of higher lows the stock is poised to breakout past resistance at $70.00 soon.

We are suggesting a trigger to buy calls at $70.25. If triggered our target is $74.75.

NOTE: Stocks could be volatile tomorrow as investors react to the jobs report that comes out Friday morning before the bell. We do face the risk that COF initially spikes higher, hits our entry trigger, and then reverses.

Trigger @ 70.25

- Suggested Positions -

Buy the Sep $70 call (COF1321i70) current ask $1.96

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 3.1 million
Listed on August 01, 2013


Shire plc - SHPG - close: 110.99 change: +1.64

Stop Loss: 108.95
Target(s): 118.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Based in Ireland, Shire plc is a specialty biopharmaceutical company. The biotech industry has been showing relative strength and SHPG is helping lead the way higher. The company reported earnings on July 25th and beat both the top and bottom line. Investors reacted by sending SHPG to new highs.

Traders were quick to buy the dip and SHGP looks poised to rally past Wednesday's high. We are suggesting a trigger to buy calls at $111.50. SHPG is overbought at current levels but it can always grow more overbought. I would keep position size small to limit risk.

NOTE: Stocks could be volatile tomorrow as investors react to the jobs report that comes out Friday morning before the bell. We do face the risk that SHPG initially spikes higher, hits our entry trigger, and then reverses.

Trigger @ 111.50 *small positions*

- Suggested Positions -

Buy the Sep $115 call (SHPG1321i115) current ask $2.40

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 347 thousand
Listed on August 01, 2013