NEW DIRECTIONAL CALL PLAYS

Check Point Software - CHKP - close: 64.29 change: -0.09

Stop Loss: 63.35
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on January 28th
New Positions: Yes, see below

Company Description

Why We Like It:
CHKP is in the technology sector. The company develops a range of software solutions including online security solutions. Shares have been pushing higher and fared okay late last week in spite of the market's rough start to 2014. Shares are currently hovering below key resistance at the $65.00 level.

I am suggesting a trigger to buy calls at $65.25. If triggered our target is $69.50 but we will plan to exit prior to CHKP's earnings report on January 28th.

Trigger @ 65.25

- Suggested Positions -

Buy the Feb $65 call (CHKP1422B65) current ask $2.25

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 821 thousand
Listed on January 04, 2014


Palo Alto Networks, Inc. - PANW - close: 57.44 change: +1.78

Stop Loss: 55.75
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to February option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
PANW is also in the technology sector. The company offers network security solutions and firewall-type products. There have been analyst comments on the stock suggesting PANW is trading at a significant discount to its peers due to the current patent infringement lawsuit Juniper Networks (JNPR) is pursuing against PANW. However, worries over the lawsuit have not stopped PANW's stock rally. The company remains a potential takeover target.

The last couple of weeks have seen PANW consolidate sideways below resistance near $58.00. A breakout here could signal the next leg higher. I am suggesting a trigger to buy calls at $58.25. If triggered our short-term target is $64.00 but I will point out that the February 2013 high near $62.00 could be potential resistance.

Trigger @ 58.25

- Suggested Positions -

Buy the Feb $60 call (PANW1422B60) current ask $2.25

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 1.1 million
Listed on January 04, 2014