NEW DIRECTIONAL CALL PLAYS

Thermo Fisher Scientific, Inc. - TMO - close: 92.65 change: +0.47

Stop Loss: 91.25
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TMO manufacturers various medically-related instruments and equipment for the healthcare industry. The company is currently in the process of acquiring Life Technologies Corp. (symbol: LIFE).

The stock has been a consistent winner. Shares continue to show momentum and are trading near all-time highs set just a few days ago. Believe it or not but shares of TMO are working on their eighth weekly gain in a row.

I am suggesting a trigger to buy calls at $92.75. if triggered our target is $98.50.

Trigger @ 92.75

- Suggested Positions -

Buy the Sep $95 call (TMO1321i95) current ask $1.10

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.57 million
Listed on August 13, 2013


NEW DIRECTIONAL PUT PLAYS

Digital Realty Trust - DLR - close: 54.58 change: -0.62

Stop Loss: 55.35
Target(s): 50.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DLR is a REIT. DLR focuses on technology-related companies and currently has 75 properties. The company's current sell-off started after its late-July earnings report. The results were relatively in-line with estimates but investors were unhappy with management's conference call. The stock plunged to new 18-month lows. Given the sell-off DLR now sports a 5.5% dividend yield but it doesn't seem to be helping. There is a lot of bearish sentiment toward this stock. The most recent data listed short interest at 22% of the 128.0 million-share float.

We like how the oversold bounce is already failing and DLR is flirting with another new low for the year. Today's low was $53.81. I am suggesting a trigger to buy puts at $53.75. If triggered our short-term target is $50.25. More aggressive traders may want to aim lower since the Point & Figure chart for DLR is bearish with a $42 target.

Trigger @ 53.75

- Suggested Positions -

buy the Sep $50 PUT (DLR1321u50) current ask $0.85

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.8 million
Listed on August 13, 2013