NEW DIRECTIONAL CALL PLAYS

Jazz Pharmaceuticals - JAZZ - close: 82.14 change: +1.26

Stop Loss: 79.75
Target(s): 88.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JAZZ is a specialty biopharmaceutical company. The company reported earnings last week. While JAZZ missed Wall Street's bottom line estimates by eight cents a share, management did raised their 2013 guidance higher. Traders bought the news and shares broke out past resistance near $80.00.

Now after consolidating sideways in the $80-82 zone for a couple of days JAZZ looks poised to take off again. I am suggesting a trigger to buy calls at $82.35. If triggered our target is $88.00.

Trigger @ 82.35

- Suggested Positions -

Buy the Sep $85 call (JAZZ1321i85) current ask $2.30

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 700 thousand
Listed on August 12, 2013


NEW DIRECTIONAL PUT PLAYS

Monsanto Co. - MON - close: 95.68 change: -0.57

Stop Loss: 96.25
Target(s): 90.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Fertilizer and agricultural chemical giant Monsanto continues to underperform the market. The oversold bounce just failed near $98 and its 10-dma. Now the stock is flirting with a breakdown below support near $95 and its 300-dma.

Today's low was $94.56. I am suggesting a trigger to buy puts at $94.40. If triggered our short-term target is $90.25 but more aggressive traders could aim lower. The point & figure chart is suggesting an $84 target.

Trigger @ 94.40

- Suggested Positions -

buy the Sep $90 PUT (MON1321u90) current ask $0.85

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 3.1 million
Listed on August 12, 2013