NEW DIRECTIONAL CALL PLAYS

Greenbrier Companies - GBX - close: 46.14 change: +0.92

Stop Loss: 44.30
Target(s): April call target: $49.85, June call target: $53.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GBX makes railroad freight cars. The stock has been showing relative strength in recent weeks and for good reason. The American shale-oil and gas boom has driven demand for rail transport of oil. Recent worries about the safety of this oil transport is generating demand for new rail cars with more safety features. Bank of America just upgraded GBX last week with a $52 price target.

The last couple of days have seen shares of GBX consolidate sideways and digest some of its recent gains with traders buying dips in the $44.50 area. Today's move has also produced a bounce off its rising 10-dma. I am suggesting we buy calls at the opening bell tomorrow. We'll start with a stop loss at $44.30.

Please note that I am setting two targets. If you choose the April calls then plan to exit at $49.85. If you choose the June calls then we're aiming for $53.50.

- Suggested Positions -

Buy the Apr $50 call (GBX1419D50) current ask $0.95

- or -

Buy the Jun $50 call (GBX1421F50) current ask $2.10

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 608 thousand
Listed on March 12, 2014


Workday, Inc. - WDAY - close: 102.63 change: +1.72

Stop Loss: 98.70
Target(s): 110.00-115.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WDAY is part of the technology sector. The company makes cloud-based software applications. The stock shot higher in late February following a better than expected earnings report and raised guidance. Since then shares have seen a correction back toward support near $100.

Today's display of relative strength (+1.7%) also produced a bullish engulfing candlestick reversal pattern. Today's high was $102.89. I am suggesting a trigger to buy calls at $103.25. If triggered our target is the $110-115 zone. We will tentatively set an exit target at $110.00 for now. The stock could move quickly. The most recent data listed short interest at 20% of the 80.2 million share float.

Trigger @ 103.25

- Suggested Positions -

Buy the Apr $105 call (WDAY1419D105) current ask $3.80

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 1.9 million
Listed on March 12, 2014