NEW DIRECTIONAL CALL PLAYS

Domtar Corp. - UFS - close: 109.89 change: +2.69

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
UFS is in the consumer goods sector. The company makes a variety of paper products. The stock shot higher on January 31st following an upgrade. UFS reported earnings several days later and beat the bottom line estimate by a wide margin. Revenues missed estimates.

Since then UFS has been slowly drifting higher as it consolidates below resistance at the $110 mark. Now shares are poised for a bullish breakout higher.

I am suggesting a trigger to buy calls at $110.50. If triggered our target is $118.00. The Point & Figure chart for UFS is bullish with a $135 target.

Trigger @ 110.50

- Suggested Positions -

Buy the APR $115 call (UFS1419D115) current ask $2.00

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 817 thousand
Listed on February 26, 2014


NEW DIRECTIONAL PUT PLAYS

Green Mountain Coffee Roasters - GMCR - close: 116.10 change: -1.40

Stop Loss: 120.10
Target(s): 101.00
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to March option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
GMCR is in the consumer goods sector. The company is best known for its K-cup single serving coffee products and Keurig machines. In early February the stock exploded higher on news that Coca-Cola (KO) was taking a 10% stake in the GMCR and together they would introduce a cold-beverage Keurig system. In less than a month GMCR was up +55% on this news and a lot of short covering. Now it appears the rally has run its course. GMCR is starting to fade lower.

GMCR can be a volatile stock so we consider any trades to be more aggressive and higher risk. Tonight we're suggesting a trigger at $114.65 to open small bearish positions. If triggered our initial target is $101.00.

Trigger @ 114.65 *small positions*

- Suggested Positions -

Buy the MAR $110 PUT (GMCR1422o110) current ask $2.41

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 6.7 million
Listed on February 26, 2014