NEW DIRECTIONAL CALL PLAYS

NetSuite Inc. - N - close: 103.35 change: +1.99

Stop Loss: 99.95
Target(s): 110.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
N is in the technology sector. The company provides cloud-based resource planning software. Shares peaked near $112.50 back in October last year. Since then N experienced a significant correction back toward the low $90s area and technical support near its 200-dma and its long-term trend line of higher lows (see weekly chart below).

We like how N has resumed the up trend with the recent breakout above resistance near $100 and then retested the 100-dma as new support. Tonight we're suggesting a trigger to buy calls at $103.75. if triggered our target is $110.00. However, we will plan to exit prior to their earnings report in late January or early February. FYI: The Point & Figure chart for N is bullish with a $129 target.

Trigger @ 103.75

- Suggested Positions -

Buy the Feb $110 call (N1422B110) current as $3.00

Annotated Chart:

Weekly Chart:

Entry on January -- at $---.--
Average Daily Volume = 410 thousand
Listed on January 07, 2014


NetEase, Inc. - NTES - close: 79.69 change: +1.66

Stop Loss: 77.50
Target(s): 87.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NTES is in the technology sector. This is a Chinese Internet stock. NTES provides online games, an Internet portal, email and more in China. Some of the Chinese Internet stocks have been showing relative strength and look poised to breakout past resistance. NTES is one of them with the stock spending the last several days consolidating below round-number resistance at $80.00. NTES displayed relative strength today with a +2.1% gain. The intraday high was $80.59.

I am suggesting a trigger to buy calls at $80.75. If triggered our target is $87.50. We will plan on exiting prior to earnings in mid February.

Trigger @ 80.75

- Suggested Positions -

Buy the Feb $85 call (NTES1422B85) current ask $2.20

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 661 thousand
Listed on January 07, 2014