NEW DIRECTIONAL CALL PLAYS

Jarden Corp. - JAH - close: 49.61 change: -0.40

Stop Loss: 47.75
Target(s): 54.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JAH is in the consumer goods sector. They manufacture a wide range of outdoor-related equipment and gear. Normally when an acquisition is announced the buyer's stock goes down. Yet when JAH recently announced plans to buy Yankee Candle for $1.75 billion the stock rallied. JAH managed to issue a secondary offering of 15 million shares at $47 to help pay for the acquisition and the stock rallied. That should tell you that investor sentiment is pretty bullish on this stock.

JAH hit new all-time, record highs on Thursday near round-number resistance at the $50.00 level. We suspect the rally keeps going and JAH will breakout past the $50 mark. I am suggesting a trigger to buy calls at $50.25. If triggered our target is $54.50. More aggressive traders could aim higher.

I am suggesting the October calls but you might want to consider buying the 2014 January calls instead.

Trigger @ 50.25

- Suggested Positions -

buy the Oct $50 call (JAH1319j50) current ask $1.15

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.9 million
Listed on September 21, 2013


NEW DIRECTIONAL PUT PLAYS

Alliant Techsystems - ATK - close: 95.60 change: -2.68

Stop Loss: 99.51
Target(s): 90.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Defense-related names have been very strong this year. Yet ATK peaked back in August ahead of its peers. The oversold bounce attempt from the 50-dma has now failed at the $100 level. ATK looks poised to breakdown below support near $95.00 and give back some of its impressive 2013 gains.

We are suggesting a trigger to buy puts at $94.75. If triggered our target is $90.25. More aggressive traders may want to aim for the rising 100-dma instead. I do consider this a slightly more aggressive, higher-risk trade because we're using a wider stop loss, just above Friday's intraday high.

Trigger @ 94.75

- Suggested Positions -

buy the Oct $95 PUT (ATK1319v95) current ask $2.45

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 434 thousand
Listed on September 21, 2013


Western Digital Corp. - WDC - close: 63.68 change: -0.71

Stop Loss: 65.60
Target(s): 60.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WDC makes data storage devices (e.g. hard drives). The technology sector has been an area of strength for the market but WDC is not participating. Shares of WDC peaked in July and has been languishing with a bearish trend of lower highs and lower lows since then.

Friday's session left WDC flirting with a bearish breakdown below short-term support near $64.00 and its 100-dma. I am suggesting a trigger to buy puts at $63.50. If triggered our target is $60.15. I would keep our position size small to limit risk.

More aggressive traders may want to aim lower. The Point & Figure chart for WDC is bearish with a $52 target.

Trigger @ 63.50 *small positions*

- Suggested Positions -

buy the Oct $60 PUT (WDC1319v60) current ask $1.22

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 2.2 million
Listed on September 21, 2013