NEW DIRECTIONAL CALL PLAYS

Chicago Bridge & Iron - CBI - close: 80.13 change: +1.87

Stop Loss: 77.70
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to CBI's earnings report in February
New Positions: Yes, see below

Company Description

Why We Like It:
CBI is in the industrial goods sector. The company is an energy infrastructure engineering and construction business. There seems to be a growing camp of analysts and economists who believe the global economy is improving and that should be a bullish environment for CBI's business. The stock has spent the last few weeks consolidating below resistance at the $80 level. Today's market-wide rally has pushed CBI right back to resistance at $80.00. A breakout here could signal the next major leg higher.

I am suggesting a trigger to buy calls at $80.35. If triggered our target is $89.50. We want to exit prior to CBI's earnings report in February. FYI: The point & figure chart is on the verge of a new triple-top breakout buy signal.

Trigger @ 80.35

- Suggested Positions -

Buy the April $85 call (CBI1419D85) current ask $3.00

Annotated Chart:

Entry on December -- at $---.--
Average Daily Volume = 1.5 million
Listed on December 18, 2013


Helmerich & Payne - HP - close: 81.52 change: +0.68

Stop Loss: 79.40
Target(s): 87.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to January option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
Do not confuse this company with Hewlett-Packard Co. (symbol: HPQ), which is commonly referred to as HP. Helmerich & Payne (HP) is in the basic materials sector and operates in the oil & gas drilling industry.

Shares of HP have been outperforming its peers in the oil and energy industry for weeks. Investors have consistently bought the dip. Today saw HP close at a new record high. We are suggesting a trigger to launch bullish positions at $81.75. If triggered our short-term target is $87.00 but we will plan to exit prior to January option expiration.

Trigger @ 81.75

- Suggested Positions -

Buy the Jan $82.50 call (HP1418a82.5) current ask $1.80

Annotated Chart:

Entry on December -- at $---.--
Average Daily Volume = 1.0 million
Listed on December 18, 2013