NEW DIRECTIONAL CALL PLAYS

Fluor Corp. - FLR - close: 66.19 change: +0.24

Stop Loss: 64.95
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FLR is in the industrial goods sector. The company provides construction services. FLR reported earnings on August 1st. The company missed Wall Street estimates by three cents and management actually lowered their 2013 guidance. Yet there was very little reaction to the news. Traders bought the post-earnings dip. Shares have actually been showing relative strength the last few days with a sideways consolidation while the rest of the market sinks.

FLR looks like it is coiling for a bullish breakout higher. The $67.00 area is major resistance and a breakout could signal a big move higher. Tonight we're suggesting a trigger to buy calls at $67.25. If triggered our multi-week target is $74.00. FYI: The Point & Figure chart for FLR is bullish with an $82 target.

Trigger @ 67.25

- Suggested Positions -

Buy the Oct $70 call (FLR1319j70) current ask $1.20

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.7 million
Listed on August 17, 2013


SINA Corp. - SINA - close: 79.99 change: +0.78

Stop Loss: 77.70
Target(s): 89.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SINA is a Chinese Internet stock and shares have been soaring higher. The company is currently getting a lot of attention for its Weibo service, which is essentially the Chinese version of Twitter. The stock broke out past key resistance in mid July. Since then momentum traders have steamrolled past the shorts and pushed SINA to new 18-month highs.

The stock market's recent weakness did spark some profit taking in SINA after it peaked above $85 just four days ago. You'll notice that traders stepped in to buy the dip at short-term technical support on its rising 10-dma.

If SINA rebounds from here we want to be ready to hop on board. Tonight we are suggesting a trigger to buy calls at $81.35. If triggered our target is $89.00.

Trigger @ 81.35

- Suggested Positions -

Buy the Sep $85 call (SINA1321i85) current ask $1.90

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 2.9 million
Listed on August 17, 2013


NEW DIRECTIONAL PUT PLAYS

Apache Corp. - APA - close: 78.99 change: -1.28

Stop Loss: 80.55
Target(s): 71.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
APA is an independent oil and gas producer. Crude oil and energy prices have been rising on worries about Egypt and the increase in violence that could threaten to push the country into a civil war. Unfortunately for APA nearly 20% of their production comes from Egypt. All the violence has prompted a growing number of businesses to shut down and evacuate their personnel. That could crimp APA's production and thus their revenues for the quarter.

Shares of APA have been consolidating with a bearish pattern of lower highs. That bearish pattern just produced a breakdown below support near $80.00 and its simple 200-dma. We suspect the next move will be much lower. Tonight I'm suggesting a trigger to buy puts at $78.75, which is just below Friday's low. If triggered our target is $71.00. FYI: The Point & Figure chart for APA is bearish with a $72 target.

Trigger @ 78.75

- Suggested Positions -

Buy the Oct $75 PUT (APA1319v75) current ask $1.50

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 2.6 million
Listed on August 17, 2013


Bally Technologies - BYI - close: 70.51 change: -2.68

Stop Loss: 71.65
Target(s): 65.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BYI manufacturers gaming systems and equipment (e.g. slot machines). The company reported earnings on Thursday night and beat estimates by a penny. Revenues also came in better than expected. Yet in spite of the positive results traders sold the news. BYI spiked to a new high above $75.00 a share and then collapsed to end Friday with a -3.6% decline.

We suspect that now earnings are over BYI could see more profit taking. This could be a volatile stock given the high short interest. The most recent data listed short interest a 21% of the 39.4 million share float. I am suggesting small positions. We'll use an entry trigger at $69.75. Our target is $65.25.

Trigger @ 69.75 *small positions*

- Suggested Positions -

buy the Sep $70 PUT (BYI1321u70) current ask $1.75

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 522 thousand
Listed on August 17, 2013