NEW DIRECTIONAL CALL PLAYS

The Walt Disney Company - DIS - close: 67.61 change: +0.46

Stop Loss: 65.85
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on November 7th.
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of entertainment giant DIS are getting closer to a bullish breakout. The stock has produced a huge run from its 2011 lows. DIS ran into trouble back in May 2013 when its upward momentum stalled. The stock has been bouncing along under resistance at $68 since then. You could argue DIS has formed an inverse head-and-shoulders pattern. A breakout past $68 could be significant.

I am suggesting a trigger to buy calls at $68.10. More conservative traders may want to use a higher trigger to lessen the risk of being triggered on an intraday spike above resistance. If triggered our target is $74.00 but we will plan to exit prior to DIS' earnings report on November 7th.

FYI: The point & figure chart is currently negative but a move above $68.00 would create a new quadruple top breakout buy signal.

Trigger @ 68.10

- Suggested Positions -

Buy the NOV $70 call (DIS1316K70) current ask $0.57

Annotated Chart:

Weekly Chart:

Entry on October -- at $---.--
Average Daily Volume = 7.1 million
Listed on October 21, 2013


Medtronic, Inc. - MDT - close: 56.49 change: -0.10

Stop Loss: 55.40
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MDT is in the medical device and equipment business. The stock has rallied to new multi-year highs and the stock has been showing significant relative strength in the last couple of weeks. Thursday last week saw MDT breakout past key resistance near $56.00 and traders were buying the dip near that same level today.

Friday's intraday high was $56.70. I am suggesting a trigger to buy calls at $56.75. If triggered our short-term target is $59.75.

Trigger @ 56.75

- Suggested Positions -

buy the NOV $55 call (MDT1316K55) current ask $1.88

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 3.4 million
Listed on October 21, 2013