NEW DIRECTIONAL CALL PLAYS

Seagate Technology - STX - close: 60.33 change: +1.79

Stop Loss: 58.45
Target(s): 65.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on January 27th.
New Positions: Yes, see below

Company Description

Why We Like It:
STX is in the technology sector. This Irish company makes electronic storage devices like hard drives and solid state drives. The stock has been popular on Wall Street with a number of upgrades in recent weeks. The current rally, up three out of the last four weeks, has lifted STX to new all-time highs. We suspect this momentum continues, at least up to its earnings report.

Today's move looks like a bullish breakout past the $60.00 level. More aggressive traders could buy calls now. We're suggesting a trigger to buy calls at $60.85. If triggered our short-term target is $65.00. Investors with a longer time horizon could aim higher since the Point & Figure chart is bullish with a $77.00 target. However, we will plan to exit prior to STX's earnings report on January 27th.

Trigger @ 60.85

- Suggested Positions -

Buy the Feb $60 call (STX1422B60) current ask $2.83

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 3.5 million
Listed on January 14, 2014


Thermo Fisher Scientific - TMO - close: 114.76 change: +1.77

Stop Loss: 112.65
Target(s): 119.75
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings in late January or Early February
New Positions: Yes, see below

Company Description

Why We Like It:
TMO is in the healthcare sector. The company produces medical instruments, equipment, reagents, diagnostics, and more. TMO displayed impressive momentum in 2013 and it's not slowing down in 2014. Shares have spent the last few days consolidating under resistance at the $115 level and TMO looks ready to break out.

I am suggesting a trigger to buy calls at $115.25. If triggered our target is $119.75. We will plan on exiting prior to earnings. At the moment there is no confirmed earnings date. It should be near the end of January or early February.

Trigger @ 115.25

- Suggested Positions -

Buy the Feb $115 call (TMO1422B115) current ask $3.20

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 1.8 million
Listed on January 14, 2014