NEW DIRECTIONAL CALL PLAYS

General Dynamics - GD - close: 99.95 change: +1.64

Stop Loss: 97.75
Target(s): 107.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GD is in the industrial goods sector. They are one of the major military contractors. The stock was showing relative strength last week following its better than expected earnings report. The relative strength returned today with a +1.6% gain.

Today's high was $100.37. I am suggesting a trigger to buy calls at $100.50. If triggered our short-term target is $107.00.

Trigger @ 100.50

- Suggested Positions -

Buy the Mar $100 call (GD1422C100) current ask $2.70

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 2.6 million
Listed on January 27, 2014


NEW DIRECTIONAL PUT PLAYS

Philip Morris Intl. - PM - close: 80.78 change: -0.72

Stop Loss: 81.55
Target(s): 75.25
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on Feb 6th
New Positions: Yes, see below

Company Description

Why We Like It:
PM is in the consumer goods sector. The company makes cigarettes and tobacco products. The big cigarette makers used to be considered safe-haven stocks thanks to their addictive products and high dividend yields. PM currently sports a 4.6% yield. Yet that hasn't saved the stock from its bearish trend. PM was showing relative weakness again today and looks poised to breakdown below what could be round-number support at $80.00.

We're suggesting a trigger to buy puts at $79.85. If triggered our short-term target is $75.25. Please note that this is a short-term trade. PM is due to report earnings on February 6th and we do not want to hold over the report.

Trigger @ 79.85

- Suggested Positions -

Buy the Feb $80 PUT (PM1422N80) current ask $1.14

Annotated Chart:

Weekly Chart:

Entry on January -- at $---.--
Average Daily Volume = 5.9 million
Listed on January 27, 2014