Buy Mylan Calls, United Rental Puts

Market Outlook Our indicators are giving bullish readings for options trading
investors, an upgrade from last weeks bullish to neutral. The bullishness is
confirmed by our internal indicators, all of which are giving bullish readings.
And volatility indexes continue to plunge toward levels not seen since 2007.
Recommended Fast Options Trade: Mylan (NASDAQ: MYL) MYL has rallied sharply over
the past month. Along the way it cleared resistance at $24 and should continue
moving higher if stocks continue to rally. Here is the best way to play more
strength in Mylan … Buy the MYL Jun 25 Call up to $1 ($100 per contract).
After taking the position, enter a good-til-cancelled contingent order to sell
this option if the stock hits its target price of $26.50. That should give you
an option price of about $2.10, for a 110% profit. Close this position and cut
losses if the stock closes below $23.80, when the option price should be about
70 cents. The stock is currently trading at $24.66. The computer-simulated
probability of this option hitting its target price is 22%. Find more option
analysis and trading ideas at Options Trading Strategies . Recommended Fast
Options Trade: United Rentals (NYSE: URI) URI has fallen below its 50-day moving
average. It snapped back on Thursday but looks like it wants to head lower. Here
is the best way to play more weakness in United Rentals … Buy the URI Jun 28
Put up to $1.30 ($130 per contract). After taking the position, enter a
good-til-cancelled contingent order to sell this option if the stock hits its
target price of $26.50. That should give you an option price of about $2.80, for
a 115% profit. Close this position and cut losses if the stock closes above
$31.30, when the option price should be about 90 cents. The stock is currently
trading at $29.72. The computer-simulated probability of this option hitting its
target price is 22%. ** All of our short-term recommendations can be taken for
up to three days after they are recommended. Make sure the stock and option
prices are close to where they were when we made the recommendation. If after
three days you still have not gotten the position filled, cancel the order and
wait for our new recommendations, as the profit probabilities may no longer be
valid. Ken Trester is editor of the popular Maximum Options program. Trester has
been trading options since the first exchanges opened in 1973 with a winning
streak that goes back to 1984 with money-doubling average annual profits since
1990.