NEW DIRECTIONAL CALL PLAYS

QUALCOMM Inc. - QCOM - close: 78.89 change: +0.81

Stop Loss: 77.40
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: Yes, see below

Company Description

Why We Like It:
QCOM is in the technology sector. They make digital communication technology and mobile phone chipsets. The stock has been garnering bullish analyst comments in recent weeks and did so again this morning. This time it was BMO Capital Markets who raised their price target on QCOM to $90.00. Their analysts believes Q1 trends looked strong for the industry.

Technically the pullback in QCOM only lasted two days and traders jumped in to buy the dip today. We are suggesting readers buy this bounce and buy calls tomorrow morning (no trigger). We'll place our stop loss at $77.40, just under today's low. Prepare to exit prior to QCOM's earnings report on April 23rd.

*Buy calls now at the open tomorrow*

- Suggested Positions -

Buy the MAY $80 call (QCOM1417E80) current ask $1.78

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 2.0 million
Listed on April 08, 2014


Western Digital Corp. - WDC - close: 90.98 change: +1.38

Stop Loss: 88.80
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on April 30th
New Positions: Yes, see below

Company Description

Why We Like It:
WDC is in the technology sector. The company makes digital storage devices. Shares had been showing relative strength prior to Friday's profit taking with a drop from $95 to support near $90.00. After a two-day pullback traders are already buying the dip. We did notice that the bounce today stalled near its 10-dma. Therefore we are suggesting a trigger to buy calls at $92.10. If triggered we will plan on exiting positions prior to WDC's earnings report on April 30th.

Trigger @ $92.10

- Suggested Positions -

buy the MAY $95 call (WDC1417E95) current ask $2.53

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 2.0 million
Listed on April 08, 2014