NEW DIRECTIONAL CALL PLAYS

Gilead Sciences - GILD - close: 81.80 change: +0.82

Stop Loss: 78.75
Target(s): 89.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GILD is in the healthcare sector. The company is a biotech firm. GILD reported earnings on Feb. 4th and beat Wall Street's estimates on both the top and bottom line. The positive earnings results have sparked a couple of analyst upgrades.

Biotech stocks remain one of the strongest industry groups in the market. Momentum in GILD continues with investors buying the dip near its rising 50-dma just a few days ago. Now GILD is poised to breakout past short-term resistance near $82.00.

We are suggesting a trigger to buy calls at $82.50. If triggered our target is $89.50. I am listing both the March and the April calls. Pick a month that best suits your time frame.

FYI: The Point & Figure chart for GILD is currently bearish but a move above $83.00 should produce a new triple-top breakout buy signal.

Trigger @ 82.50

- Suggested Positions -

Buy the MAR $85 call (GILD1422c85) current ask $1.90

- or -

Buy the APR $85 call (GILD1419D85) current ask $2.89

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 13.7 million
Listed on February 11, 2014


Constellation Brands Inc. - STZ - close: 78.67 change: +1.60

Stop Loss: 75.95
Target(s): 84.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
STZ is in the consumer goods sector. The company products alcoholic beverages including a wide number of wines, vodka, and brandy. The stock soared back in January following its bullish earnings report. The company beat the street's earnings estimates by a wide margin and beat on the revenue number. Management then raised their 2014 guidance.

The post-earnings rally has seen a correction but traders have been buying the dips near new support along the $75.00 level. Now that the market is bouncing shares of STZ have resumed their prior, longer-term up trend.

Today's high was $78.83. I am suggesting a trigger to buy calls at $79.00. The prior highs near $81.50 could be overhead resistance but we're aiming for $84.75. STZ does not move super fast so you may want to buy the April calls instead of the March calls.

Trigger @ 79.00

- Suggested Positions -

Buy the MAR $80 call (STZ1422C80) current ask $1.65

- or -

Buy the APR $80 call (STZ1419D80) current ask $3.20

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 1.5 million
Listed on February 11, 2014