NEW DIRECTIONAL CALL PLAYS

Hanesbrand Inc. - HBI - close: 63.00 change: +1.03

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HBI is looking pretty comfortable here. Bloomberg ran an article recently discussing how lower Chinese imports and a multi-year cotton surplus is boosting HBI's margins. Cheaper input costs (cotton) certainly doesn't hurt HBI's bottom line. Technically shares spent about three weeks building a new base in the $59-62 area. Now HBI is breaking out and closed near its high for the day. After the closing bell tonight HBI reaffirmed its 2013 guidance.

I am suggesting a trigger to buy calls at $63.25. If triggered our target is $68.50. I do expect to see some temporary resistance at the prior high near $65.00.

Trigger @ 63.25

- Suggested Positions -

buy the Oct $65 call (HBI1319j65) current ask $1.35

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 612 thousand
Listed on September 10, 2013


UnitedHealth Group - UNH - close: 74.63 change: +0.38

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Wall Street is pretty bullish on the managed care names. The recent trend of analyst opinions on UNH has been positive. Shares did just spend about five weeks digesting gains in a sideways consolidation. Yet now UNH is on the rise and breaking out to new all-time highs.

UNH is currently sitting just below round-number resistance at the $75.00 level. I am suggesting a trigger to buy calls at $75.25. If triggered our target is $79.75.

Trigger @ 75.25

- Suggested Positions -

Buy the Oct $75 call (UNH1319j75) current ask $1.97

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 3.3 million
Listed on September 10, 2013


NEW DIRECTIONAL PUT PLAYS

Bed Bath & Beyond Inc. - BBBY - close: 71.78 change: -0.67

Stop Loss: 73.55
Target(s): 66.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Sept. 25th
New Positions: Yes, see below

Company Description

Why We Like It:
BBBY runs a chain of retail stores focused on home furnishings, linens and similar products. Most of the market peaked in early August and BBBY was no exception. Yet now the broader market has reversed higher and BBBY is not participating in the rally. Shares have continued to underperform and they look poised to breakdown below technical support at the 100-dma soon. BBBY's long-term up trend of higher lows is in danger of being broken.

Today's low was $71.64. I am suggesting a trigger to buy puts at $71.45. If triggered our target is $66.50, just above the simple 200-dma. Please note that I would not be surprised to see a short-term bounce from the $70.00 level and the $72.00 area, once broken as support, should be new resistance. FYI: BBBY is expected to report earnings on September 25th. We will most likely exit prior to the earnings report to avoid any surprises.

Trigger @ 71.45

- Suggested Positions -

buy the Oct $70 PUT (BBBY1319v70) current ask $1.86

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.45 million
Listed on September 10, 2013