NEW DIRECTIONAL CALL PLAYS

Alaska Air Group - ALK - close: 81.54 change: +1.62

Stop Loss: 79.45
Target(s): 88.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ALK is in the services sector. The company is a regional airline. Airlines as a group have been performing well in the market. ALK has rebounded from its February lows and is now approaching all-time highs.

Shares are trading just below resistance near $82.00. We're suggesting a trigger to buy calls at $82.25. If triggered our target is $88.00. The Point & Figure chart for ALK is bullish with a $98 target.

Trigger @ $82.25

- Suggested Positions -

Buy the APR 85 call (ALK1419D85) current ask $2.35

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 818 thousand
Listed on February 22, 2014


Rockwell Automation - ROK - close: 119.32 change: +0.33

Stop Loss: 117.90
Target(s): 129.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ROK is in the industrial goods sector. The company provides automation solutions to a wide number of industries. ROK has been showing relative strength with a nearly non-stop bounce from its February lows. Now shares are on the verge of a bullish breakout past resistance in the $120 area.

The January 21st intraday high was $121.01. I am suggesting a trigger to buy calls at $121.25. If triggered our target is $129.00.

Trigger @ $121.25

- Suggested Positions -

Buy the APR $125 call (ROK1419D125) current ask $1.65

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 1.1 million
Listed on February 22, 2014


NEW DIRECTIONAL PUT PLAYS

LinkedIn - LNKD - close: 192.62 change: -0.77

Stop Loss: 200.50
Target(s): 171.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to March expiration
New Positions: Yes, see below

Company Description

Why We Like It:
LNKD is in the technology sector. The company operates an online professional network service. The stock peaked back in September last year. Since then LNKD has been suffering with a bearish trend of lower highs and lower lows. This past month has seen a breakdown below round-number support at the $200 level. Just a couple of days ago LNKD's 50-dma and 200-dma produced a "death cross" with the 50-dma falling below the 200-dma.

The recent sell-off accelerated following disappointing earnings guidance. The oversold bounce is revering near resistance at its 10-dma. Overall shares look ready to resume the down trend again.

We are suggesting small bearish positions now at current levels. Our target is $171.00. I confess that target looks a bit optimistic with only four weeks left until March option expiration but stocks tend to fall faster than they climb.

*small positions* - Suggested Positions -

Buy the Mar $180 PUT (LNKD1422o180) current ask $3.45

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 4.0 million
Listed on February 22, 2014