NEW DIRECTIONAL CALL PLAYS

CVS Caremark - CVS - close: 74.35 change: -0.60

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CVS is in the services sector. The company provides pharmacy healthcare services and a retail drug store chain with over 7,600 locations. The stock has been consistently showing slow and steady strength. Traders were buying the dips all afternoon today. CVS looks poised to breakout past the $75.00 level soon. Shares could be influenced by earnings news from its rival Walgreens (WAG) who reports tomorrow morning.

We are suggesting a trigger to buy calls on CVS if shares trade at $75.10. If triggered our target is $79.75.

Trigger @ $75.10

- Suggested Positions -

Buy the May $75 call (CVS1417E75) current ask $1.60

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 5.4 million
Listed on March 24, 2014


Lockheed Martin - LMT - close: 158.19 change: +0.79

Stop Loss: 156.95
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LMT is in the industrial goods sector. The company makes aerospace and defense-related products. The stock was showing some relative strength today as traders bought the dip near technical support at its 50-dma. If LMT can bounce from here we want to be ready to jump on board if the stock can clear resistance near $160.00.

We're suggesting a trigger to buy calls at $160.75. We're not setting a target just yet but the recent highs near $168.00 could be a target for short-term traders.

Trigger @ 160.75

- Suggested Positions -

Buy the Apr $160 call (LMT1419D160) current ask $2.15

- or -

Buy the Jun $165 call (LMT1421F165) current ask $2.90

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 2.0 million
Listed on March 24, 2014