NEW DIRECTIONAL CALL PLAYS

Illumina Inc. - ILMN - close: 101.29 change: +2.04

Stop Loss: 97.75
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to 2014 January option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
ILMN is in the healthcare sector. The company operates in the biotech industry. The biotech group has been one of the market's best performing area this year. ILMN is certainly doing its part after shares soared following its latest earnings report back in October. ILMN beat estimates on both the top and bottom line and management then raised their guidance.

The last couple of weeks have seen ILMN consolidating sideways in the $96.50-100.00 zone. That changed today with a bullish breakout past $100.00. Further gains could spark some short covering since the most recent data listed short interest at 26% of the 125 million-share float.

Today's high was $101.80. I am suggesting a trigger at $102.00 to buy calls. If triggered our target is $109.00. More aggressive traders may want to aim higher since the point & figure chart is bullish with a $146 target. P&F chart readers will also notice that ILMN is about to produce a new triple-top breakout buy signal.

NOTE: Biotech stocks can be volatile and the wrong headline could send shares gapping lower. Investors may want to limit their position size.

Trigger @ 102.00

- Suggested Positions -

buy the 2014 Jan $105 call (ILMN1418a105) current ask $3.40

Annotated Chart:

Entry on December -- at $---.--
Average Daily Volume = 931 thousand
Listed on December 09, 2013


Nu Skin Enterprises - NUS - close: 131.52 change: +2.59

Stop Loss: 127.40
Target(s): 139.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to January expiration
New Positions: Yes, see below

Company Description

Why We Like It:
NUS is in the consumer goods sector. The company sells personal care products and nutritional supplements. This stock has had an amazing year. The stock was trading at $37 back on December 31st, 2012. The company has done a great job executing. Their latest earnings report was a blowout and management has been raising their guidance for 2014.

I am suggesting a trigger to buy calls at $131.75. More conservative traders might want to wait for NUS to trade above the recent December high at $132.67 as an alternative entry point. Our target is $139.50 but more aggressive traders could aim a lot higher. The Point & Figure chart for NUS is bullish with a $167 target.

Trigger @ 131.75

- Suggested Positions -

Buy the 2014 Jan $135 call (NUS1418a135) current ask $4.70

Annotated Chart:

Entry on December -- at $---.--
Average Daily Volume = 1.1 million
Listed on December 09, 2013