NEW DIRECTIONAL CALL PLAYS

Helmerich & Payne, Inc. - HP - close: 73.98 change: +0.81

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HP is in the basic materials sector. The company is an oil driller. Both HP and the XOP oil & gas exploration ETF have been performing well. Both closed at new multi-year highs on Friday. Given the momentum, we expect the trend to continue.

On a short-term basis HP is hovering near short-term (intraday) resistance near $74.00. I am suggesting a trigger to buy calls at $74.50. More conservative traders may want to wait for HP to trade above $75.00 before initiating positions since it's possible that the $75.00 level could be round-number resistance.

If we are triggered at $74.50 we will target a move to $79.50. However, we do not want to hold over the mid-November earnings report. FYI: The Point & Figure chart for HP is bullish with an $82 target.

Trigger @ 74.50

- Suggested Positions -

buy the NOV $75 call (HP1316K75) current ask $2.15

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 1.1 million
Listed on October 12, 2013


Starbucks Corp. - SBUX - close: 77.82 change: +0.70

Stop Loss: 75.75
Target(s): 82.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in very late October
New Positions: Yes, see below

Company Description

Why We Like It:
We are revisiting Starbucks, the ubiquitous coffee giant. Accept for the weakness on Tuesday and Wednesday this past week shares of SBUX have actually been pretty resilient. The market's two-day bounce has lifted SBUX back toward resistance near $78.00. Momentum clearly favors the bulls here and a breakout could spark the next leg higher.

I am suggesting a trigger to buy calls at $78.25. If triggered our target is $82.50. Yes, it's possible that the $80.00 level could be round-number, psychological resistance but after a three-week consolidation sideways under the $78.00 level we suspect that $80 is not going to stop the rally in SBUX.

We do not want to hold over SBUX's earnings, which will likely occur at the end of the month of early November.

Trigger @ 78.25

- Suggested Positions -

Buy the NOV $80 call (SBUX1316k80) current ask $1.56

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 3.7 million
Listed on October 12, 2013


NEW DIRECTIONAL PUT PLAYS

Newmont Mining - NEM - close: 25.62 change: -0.68

Stop Loss: 27.10
Target(s): 21.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on October 31st
New Positions: Yes, see below

Company Description

Why We Like It:
NEM is a mining company. Its two main products are gold and copper. Traditional thinking would have suggested that gold prices would have rose on news that President Obama nominated Janet Yellen for the Federal Reserve Chairman position. That's because Yellen is seen as a dove on monetary policy and will most likely keep Bernanke's QE program unchanged and possibly in action longer than Wall Street previously expected. Yet gold did not rally on the Yellen news. Instead gold has continued to fall and that's helping push NEM shares lower. If that wasn't enough NEM just lowered its 2013 copper production estimate.

Both the long-term and short-term trend for NEM is down. This past week saw a breakdown below support near its July and August lows. Tonight we are suggesting traders buy puts at the opening bell on Monday morning. We'll start with a stop loss at $27.10, about 25 cents above the 10-dma. Our target is $21.00 but we will plan to exit prior to NEM's earnings report scheduled on October 31st.

- Suggested Positions -

buy the NOV $25 PUT (NEM1316W25) current ask $1.04

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 9.1 million
Listed on October 12, 2013