NEW DIRECTIONAL CALL PLAYS

Fluor Corp. - FLR - close: 67.15 change: +0.43

Stop Loss: 64.75
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FLR is in the industrial goods sector. The company provides heavy construction services. If you're bullish on the economy then cyclical stocks should perform well. Shares of FLR have been struggling to get past resistance near $67.00 for months. Today's move places FLR on the verge of a major breakout.

Today's high was $67.49. I am suggesting a trigger to buy calls at $67.65. If triggered our target is $74.50. You may want to aim higher. The Point & Figure chart for FLR is bullish with an $82 target.

Trigger @ 67.65

- Suggested Positions -

Buy the Oct $70 call (FLR1319j70) current ask $0.90

- or -

Buy the 2014 Jan $70 call (FLR1418a70) current ask $2.95

Annotated Chart:

Weekly Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.1 million
Listed on September 11, 2013


Northrop Gruman - NOC - close: 95.11 change: +0.66

Stop Loss: 92.75
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NOC is in the aerospace & defense industry. The defense-related names have continued to hold up well. The broader market saw a sharp sell-off in August but the correction in NOC was pretty mild over the same period. Traders bought the dip at NOC's 40-dma back in June and July and now they're doing it again.

The current two-day rally in NOC has produced a bullish breakout over the four-week trend of lower highs. You could certainly argue that the August highs in the $96.25-96.50 zone are overhead resistance, odds are good that NOC will make a run at the $100 level.

Today's high was $95.11. I am suggesting a trigger to buy calls at $95.25. If triggered our target is $99.75.

FYI: The Point & Figure chart for NOC is bullish with a long-term $160 target.

Trigger @ 95.25

- Suggested Positions -

Buy the Oct $97.50 call (NOC1319j97.5) current ask $1.00

- or -

Buy the 2014 Jan $100 call (NOC1418a100) current ask $2.00

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.2 million
Listed on September 11, 2013