NEW DIRECTIONAL CALL PLAYS

Cigna Corp. - CI - close: 89.86 change: +0.37

Stop Loss: 88.40
Target(s): 95.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on February 7th
New Positions: Yes, see below

Company Description

Why We Like It:
CI is in the healthcare sector. The company provides healthcare insurance plans. Investors have been buying the dips in CI and they just did it again this week. Now the stock is poised to breakout past the $90.00 level. I am suggesting a trigger to buy calls at $90.25. If you prefer an alternative entry point could be $90.75, which would mean waiting for a breakout past its highs from last week. If we are triggered at $90.25 I am suggesting a $95.00 target. However, we'll plan on exiting prior to the earnings report on February 7th.

FYI: The Point & Figure chart for CI is bullish with a $119 target.

Trigger @ 90.25

- Suggested Positions -

buy the Feb $90 call (CI1422B90) current ask $2.48

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 1.0 million
Listed on January 15, 2014


Cognizant Tech. - CTSH - close: 101.03 change: +0.70

Stop Loss: 99.40
Target(s): 108.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on February 5th
New Positions: Yes, see below

Company Description

Why We Like It:
CTSH is in the technology sector. The company provides information technology (IT) consulting. When CTSH reported earnings back in November, management raised their guidance. Over the last couple of months the stock has garnered analyst price targets in the $110-120 zone. Just yesterday JPMorgan said IT services stocks should outperform this year.

Currently CTSH has been consolidating sideways the last two weeks and looks poised to breakout past resistance near $101.00 level. I am suggesting a trigger to buy calls at $101.50. If triggered our target is $108.50. However, we will plan on exiting positions prior to the earnings report on February 5th.

Trigger @ 101.50

- Suggested Positions -

buy the Feb $105 call (CTSH1422B105) current ask $1.85

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 1.6 million
Listed on January 15, 2014