NEW DIRECTIONAL CALL PLAYS

EOG Resources - EOG - close: 101.11 change: +1.15

Stop Loss: 98.75
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 5th
New Positions: Yes, see below

Company Description

Why We Like It:
EOG is in the basic materials sector. The company explores for and produces oil and gas. Energy stocks were some of the market's best performers today and the group has been showing relative strength. Today's move in EOG is a new all-time closing high. The intraday high is $103.30 from April 4th.

EOG's last earnings report was February 24th and the company beat both the top and bottom line estimates. Wall Street was impressed and several firms upgraded their price targets or rating on EOG since the earnings announcement. The spike higher on April 4th appears to be a reaction to one analyst putting a $120 price target on EOG.

This week's breakout past round-number resistance at the $100.00 level is good news for the bulls. Today's intraday high was $101.68. I am suggesting a trigger to buy calls at $101.75. If triggered we'll set an exit target at $109.00 but plan on exiting prior to earnings on May 5th.

Trigger @

- Suggested Positions -

Buy the May $105 call (EOG1417E105) current ask $1.68

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 2.9 million
Listed on April 15, 2014


iShares Russell 2000 ETF - IWM - close: 111.15 change: +0.43

Stop Loss: 108.60
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The small caps have been correcting lower since their early March highs. The IWM has been testing support near $110 and its simple 200-dma the last two days in a row. At today's intraday low the IWM was down -9.8% from its high. Traders could have been waiting for a -10% correction as their entry point to buy the dip. The IWM ETF certainly bounced and closed back above support at $110 and its 200-dma.

The trend is down but odds look good the market is poised for a short-term bounce. We're suggesting a trigger to buy calls at $112.15 with a stop under today's low. We're not setting a target yet but I would consider exiting in the $115-117 zone.

Trigger @ 112.15

- Suggested Positions -

Buy the JUN $115 call (IWM1421F115) current ask $2.16

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 55 million
Listed on April 15, 2014