NEW DIRECTIONAL CALL PLAYS

Salesforce.com - CRM - close: 60.53 change: +0.44

Stop Loss: 59.40
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings in late February
New Positions: Yes, see below

Company Description

Why We Like It:
CRM is in the technology sector. The company provides cloud computing solutions. Investors are worried that the market is poised for a correction. Shares of CRM already saw a correction back in November-December last year. The stock retreated from $57.50 to $50.00. Since bottoming near $50 in December CRM bullish trend resumed. The most recent bounce has lifted shares back to all-time highs above $60 a share. We suspect this relative strength continues.

CRM has short-term resistance at $61.50. I am suggesting a trigger to buy calls at $61.75. If triggered our target is $67.50. However, we will plan on exiting prior to CRM's earnings report in late February (no confirmed date yet).

FYI: The Point & Figure chart for CRM is bullish with an $82 target.

Trigger @ 61.75

- Suggested Positions -

Buy the Mar $62.50 call (CRM1422C62.5) current ask $2.68

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 4.8 million
Listed on February 01, 2014


NEW DIRECTIONAL PUT PLAYS

The J.M.Smucker Company - SJM - close: 96.39 change: -1.47

Stop Loss: 98.25
Target(s): 90.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on Feb. 14th
New Positions: Yes, see below

Company Description

Why We Like It:
SJM is in the consumer goods sector. The company operates three segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; and International, Foodservice, and Natural Foods. Shares of SJM peaked back in August 2013. The stock set a new lower high in October. Its latest earnings report in November was a disappointment. Shares have continued to sink under a bearish trend of lower highs. Now SJM is breaking down below short-term support near $96.50-97.00. There seem to be growing concerns over the U.S. consumer and that might accelerate SJM's decline.

Tonight we're suggesting a trigger to buy puts at $96.25. It looks like the $95.00 mark might be potential support but real support appears to be the $90.00 level. If we are triggered our target is $90.50. More aggressive traders could aim lower since the Point & Figure chart for SJM is bearish with an $86 target. However, our target at $90.50 may already be too optimistic. SJM is scheduled to report earnings on February 14th and we do not want to hold over the report. We have two weeks. Nimble traders might want to use the February options. I am suggesting the March $95 put.

Trigger @ 96.25

- Suggested Positions -

Buy the MAR $95 PUT (SJM1422o95) current ask $2.70

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 896 thousand
Listed on February 01, 2014