NEW DIRECTIONAL CALL PLAYS

Starbucks Corp. - SBUX - close: 81.46 change: -0.16

Stop Loss: 79.75
Target(s): 87.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The ubiquitous coffee giant is on the verge of another breakout. SBUX has spent almost the entire month of November consolidating sideways, albeit with a slightly bullish trend of higher lows as traders buy the dips. The consolidation is narrowing and SBUX is testing its recent high near $82.50 from early November.

The long-term trend is up and SBUX appears to be ready for a bullish breakout into the next leg higher. I am suggesting a trigger to buy calls at $82.75. If triggered our multi-week target is $87.50. However, that might be a little bit optimistic so we'll need to be nimble with our exit strategy. We may end up exiting near SBUX's trend line of higher highs (see chart).

Trigger @ 82.75

- Suggested Positions -

Buy the 2014 Jan $85 call (SBUX1418a85) current ask $1.06

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 4.5 million
Listed on November 30, 2013


NEW DIRECTIONAL PUT PLAYS

Ctrip.com Intl. - CTRP - close: 47.78 change: +0.41

Stop Loss: 49.25
Target(s): 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CTRP is in the services sector. The company provides an array of travel services for travel inside of China. The stock has been an incredible performer in 2013 with a rally from its early 2013 lows near $19.00 to trade over $60 in October this year. It looks like the rally has run its course. The stock produced a bearish double top in October near $60. Then on November 5th CTRP reported earnings that beat Wall Street's estimates by one cent. Revenues were also above expectations. Yet investors sold the news. CTRP has been correcting lower since its earnings report.

The first oversold bounce in mid November failed at its 50-dma. Now it looks like the bounce from three days ago is failing at its converging 10-dma and 100-dma in the $48.50 area.

We are suggesting a trigger to buy puts at $47.25. If triggered we'll start with a stop loss at $49.25. More aggressive traders may want to use a stop above the $50.00 level instead since $50 should be round-number resistance. Our target is $42.00 near its August 2013 lows. More aggressive traders could aim lower since the Point & Figure chart for CTRP is bearish with a $40 target.

Trigger @ 47.25

- Suggested Positions -

Buy the 2014 Jan $45 PUT (CTRP1418m45) current ask $2.00

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 3.7 million
Listed on November 30, 2013