NEW DIRECTIONAL CALL PLAYS

EnerNOC, Inc. - ENOC - close: 22.84 change: +0.48

Stop Loss: 21.49
Target(s): 25.75
Current Option Gain/Loss: Unopened
Time Frame: EXIT PRIOR to earnings on February 13th
New Positions: Yes, see below

Company Description

Why We Like It:
ENOC is in the services sector. The company provides software and services to the energy industry. The stock has been showing significant relative strength and pretty much ignoring the market's recent sell-off. I can't find any specific catalyst behind the big move higher on January 8th this year. The stock is up seven out of the last eight weeks in a row.

On a short-term basis ENOC is poised to breakout past the $22.00 mark. I am suggesting a trigger to buy calls at $23.10. If triggered our target is $25.75. However, we will plan to exit prior to ENOC's earnings report on February 13th.

FYI: The Point & Figure chart for ENOC is bullish with a $28 target.

Trigger @ 23.10

- Suggested Positions -

Buy the MAR $22.50 call (ENOC1422C22.5) current ask $1.80

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 485 thousand
Listed on January 28, 2014


NEW DIRECTIONAL PUT PLAYS

Restoration Hardware - RH - close: 57.44 change: -0.82

Stop Loss: 60.25
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
RH is in the services sector. The company is essentially a specialty retailer for home furnishings. Wall Street is pretty sour on anything related to retail these days. The Q4 and holiday shopping season turned out worse than many had hoped. The correction lower in shares of RH that started last year has continued into 2014.

On a short-term basis it looks like the oversold bounce has stalled at RH's simple 10-dma. I am suggesting new put positions now at current levels with a stop loss at $60.25. Please note that I do consider this a somewhat more aggressive, higher-risk trade because RH does have above average short interest (about 10% of the 34 million-share float).

Our multi-week target is $51.00. More aggressive traders could aim lower. The Point & Figure chart for RH is bearish with a $43 target.

(*launch small positions at the opening bell*)

- Suggested Positions -

Buy the MAR $55 PUT (RH1422o55) current ask $2.45

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 981 thousand
Listed on January 28, 2014