NEW DIRECTIONAL CALL PLAYS

Schlumberger - SLB - close: 89.85 change: +0.80

Stop Loss: 88.25
Target(s): 94.75
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Oct. 18th
New Positions: Yes, see below

Company Description

Why We Like It:
SLB is a giant in the oil services field. Shares have been showing relative strength with a five-week rally currently underway. The last several days have seen SLB consolidating sideways below resistance at the $90.00 level. We suspect SLB will breakout and make a run toward resistance at the $95.00 level.

Please note that we only have about two weeks. We do not want to hold positions over SLB's earnings announcement on October 18th. I am suggesting a trigger to buy calls at $90.25. If triggered our target is $94.75.

FYI: The Point & Figure chart for SLB is bullish with a $113 target.

Trigger @ 90.25

- Suggested Positions -

Buy the Nov $92.50 call (SLB1316K92.5) current ask $1.73

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 6.3 million
Listed on October 02, 2013


Sohu.com Inc. - SOHU - close: 80.28 change: +0.98

Stop Loss: 76.75
Target(s): 88.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SOHU is a Chinese Internet stock with multiple websites and mobile properties including a micro blog service. Many of the popular momentum stocks in the U.S. market have been relatively immune to the market's weakness. SOHU is one of those momentum stocks and as a Chinese company it should be unaffected by the U.S. government shutdown.

SOHU continued to show relative strength today with a +1.2% gain and what appears to be a bullish breakout past the $80.00 level. Tonight we're suggesting small bullish positions if SOHU can trade above $80.75. If triggered our target is $88.50.

NOTE: I do consider this a more aggressive, higher-risk trade because SOHU can be a volatile stock. I am suggesting small positions to limit risk.

Trigger @ 80.75

- Suggested Positions -

Buy the Nov $85 call (SOHU1316K85) current ask $4.30

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 2.0 million
Listed on October 02, 2013