NEW DIRECTIONAL CALL PLAYS

FedEx Corp. - FDX - close: 110.69 change: +0.08

Stop Loss: 108.99
Target(s): 118.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Sep. 18th
New Positions: Yes, see below

Company Description

Why We Like It:
FDX is part of the Dow Jones transportation average and the stock is outperforming most of its peers. Shares have just spent the last three weeks consolidating sideways in the $107.50-110.00 zone and the Thursday-Friday rally has produced a bullish breakout to new multi-year highs. The next level of significant resistance could be FDX's all-time highs near $120 set back in the 2006-2007 time frame.

More aggressive traders could buy calls now. Friday's high was $110.89. I am suggesting a trigger to buy calls at $111.00. If triggered our multi-week target is $118.00. However, we will plan to exit prior to FDX's earnings report on September 18th.

Trigger @ 111.00

- Suggested Positions -

Buy the Oct $115 call (FDX1319j115) current ask $2.35

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.9 million
Listed on August 24, 2013


OpenTable, Inc. - OPEN - close: 74.63 change: +0.38

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
OPEN manages an electronic restaurant reservation book where consumers can book reservations online or through their mobile apps. Shares of OPEN surged in mid August on headlines that Facebook (FB) is planning to make its mobile pages more functional by including the ability to use OpenTable's reservation system (source: Techcrunch.com). The reaction pushed OPEN to new multi-year highs. Since then traders have been buying the dips near its rising 10-dma. Now OPEN is poised to breakout past the $75.00 level.

If this rally continues OPEN could see a short squeeze, or at least additional short covering. The most recent data listed short interest at 22% of the small 22.4 million share float. I am suggesting a trigger to buy calls at $75.25. If triggered our short-term target is $79.75. More aggressive traders may want to aim a lot higher. The Point & Figure chart for OPEN is bullish with a $103 target.

Trigger @ 75.25

- Suggested Positions -

buy the Oct $80 call (OPEN1319j80) current ask $2.30

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 900 thousand
Listed on August 24, 2013


NEW DIRECTIONAL PUT PLAYS

McDonald's Corp. - MCD - close: 95.13 change: -0.33

Stop Loss: 96.05
Target(s): 90.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MCD is clearly not participating in the market's recent bounce. After a two-week drop in mid August, shares of MCD just spent the last week consolidating sideways in the $95-96 zone and below its simple 200-dma. Wall Street is worried about the consumer. The carnage in the retail stocks has been pretty widespread. Dread over a slowing consumer is also hitting some of the restaurant stocks. It looks like MCD is on the list.

Shares are sitting on support near $95.00. Friday's intraday low was $94.91. I am suggesting a trigger to buy puts at $94.75. If triggered our target is $90.50.

Trigger @ 94.75

- Suggested Positions -

buy the Sep $92.50 PUT (MCD1321u92.5) current ask $0.65

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 4.8 million
Listed on August 24, 2013