NEW DIRECTIONAL CALL PLAYS

Adobe Systems - ADBE - close: 64.04 change: +1.00

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADBE is in the technology sector. The company makes software for the digital media industry. The company reported earnings on March 18th. Wall Street was looking for a profit of 25 cents a share on revenues of $973 million for ADBE's first quarter. The company beat estimates with 30 cents in earnings on revenues near $1 billion. The street likes what they see with ADBE's relatively new subscription model gaining momentum. Several firms raised their price target on ADBE following its earnings report in the last few weeks.

Technically the stock has produced a post-earnings correction, which is not uncommon. Yet the long-term up trend is still intact. Traders bought the dip near round-number support at $60.00.

We are suggesting bullish positions on Monday morning with a stop loss at $$59.45, under the early April low. More conservative traders may want to wait for a dip near $62.00 as an alternative entry point. We would like to hold this trade for several weeks.

- Suggested Positions -

Buy the Jul $65 call (ADBE1419G65) current ask $3.20

Annotated Chart:

Weekly Chart:

Entry on April -- at $---.--
Average Daily Volume = 4.8 million
Listed on April 19, 2014


Nu Skin Enterprises - NUS - close: 86.42 change: +1.90

Stop Loss: 79.75
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NUS is in the consumer goods sector. The company distributes anti-aging personal care products and nutritional supplements. The stock was crushed back in January this year with a drop from $140 to $70 in just a few days. The big decline back in January was fueled by worry that the Chinese government was investigating NUS as a pyramid scheme. Naturally Wall Street is worried. China is one of NUS' most profitable regions and accounts for nearly one third of NUS annual sales.

NUS issued an earnings warning in early March as they continued to deal with the investigation in China. The story seems to have changed following the March 24th announcement that China's Administration of Industry and Commerce reviewed NUS' business and fined the company $524,000 for a few infractions that didn't line up with China's legal system. The $524K fine alleviated the black cloud over NUS' business. Previously no one knew how China's regulators would react? Would they kick NUS out of the country? How big would any fines be? This announcement removed a lot of the unknowns. For NUS, a company with $3.1 billion in annual revenues, the $524K fine is probably produced a sigh of relief.

NUS did give back most of its gains following the March 24th announcement but shares have found support near $80 and some key moving averages. Tonight we are suggesting a buy-the-dip trigger at $84.50 with a stop loss at $79.75. More aggressive traders may want to jump in early and buy calls at the open instead.

I anticipate the $100 level acting as round-number resistance for NUS. Currently the Point & Figure chart for NUS is bullish with a $102 target.

Earnings for NUS are expected in early May. No date has been set yet.

Trigger @ $84.50

- Suggested Positions -

Buy the May $90 call (NUS1417E90) current ask $4.00

Annotated Chart:

Weekly Chart:

Entry on April -- at $---.--
Average Daily Volume = 1.8 million
Listed on April 19, 2014


NEW DIRECTIONAL PUT PLAYS

Catamaran - Corp. - CTRX - close: 39.09 change: -0.85

Stop Loss: 40.65
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on May 1st
New Positions: Yes, see below

Company Description

Why We Like It:
CTRX is in the technology sector. They're grouped in with the software industry. The company offers pharmacy benefit management services and healthcare information technology. The stock set its all-time high in summer of 2013. The current sell-off started after CTRX reported earnings in late February and the company lowered their guidance. After trying to hold support near the $44.00 level CTX broke down again in April. The stock looks broken and is underperforming the broader market. Traders just sold the bounce again under its 10-dma this past week.

Tonight we're suggesting bearish positions at the opening bell on Monday. We'll use a stop just above last week's high. CTRX is scheduled to earnings again on May 1st. We do not want to hold over the announcement. We're not setting at target to tonight but I would probably aim for the $35 region.

FYI: The Point & Figure chart for CTRX is bearish with a long-term $23 target.

- Suggested Positions -

Buy the May $40 PUT (CTRX1417Q40) current ask $2.25

Annotated Chart:

Weekly Chart:

Entry on April -- at $---.--
Average Daily Volume = 3.3 million
Listed on April 19, 2014