Foot Locker's stock, now around $10, could rally to $15 in the next year as the retail climate improves. Shares currently sell below book value of $12.58.

Thanks to the improved profit margins, strong cash flow and an unmatched array of products, PetSmart's stock could climb by 29% during the next year or so.

So what's the trade here? The health-care sector, as measured by several exchange-traded funds, is about unchanged this year, but Cardinal Health (CAH) is off 11%. In early June, the drug wholesaler said that earnings would fall 15% in fiscal 2010, ending next June; its shares fell to 29.33 from 36.56 in a session. With the stock this near $30, I would play for a rebound, but collect some rent along the way. Thus, I might buy the Jan. 20, 2010, LEAPs at $11, and sell the Aug. 30 calls against them. (Most Long-term Equity AnticiPation Securities expire in 36 months.) The Jan. 20 LEAPs are $10 in-the-money, and thus a good surrogate for stock, but trading for about a third of its price. With the Aug. 30 calls trading for $2, I'm protected to a decline to $28 in the stock. If the shares are above 30 by the Aug. 21 options-expiry date, I'll net 18% in the next 54 days. I wouldn't want Cardinal called from me at 30, so if the shares are above 30 in the last week of August, I'd buy my short call back and sell the September or further-out call against my LEAPs. I could collect a premium against my LEAPs for three or more times into their January expiration, generating income against my $11 stock surrogate.

I like the odds of buying just in-the-money Wal-Mart September 47.50 calls (the shares were at 47.99 late Thursday) and selling a like number of September 52.50 calls for a net of $1.90. This is a $5 bull call, or call-vertical spread. If Wal-Mart is below $47.50 on the third Friday in September, I would lose my $1.90 investment. But if it is $52.50 or higher, the spread will be worth $5, resulting in a profit of $3.10 on a $1.90 investment. That's 163% for playing the odds that trading in Wal-Mart will reflect the recovery I see for the market in the next quarter.

Spring flooding in the Plains states delayed the winter-wheat crop, but harvesting began recently. Nonetheless, an expected cold front could put the kibosh on an extended harvest, in contrast to last year, when a mild fall stretched out the growing season. Reflecting supply concerns, open interest on grain futures has ratcheted higher in the past few weeks, as investors bet higher prices are in the offing. One way to make a concentrated bet on the grain sector is through the PowerShares DB Agricultural ETF (DBA).

Still, the biggest immediate impact from the lousy weather will be felt among the retailers, particularly those with heavy presences in the most affected states. The Northeast, for example, accounts for roughly 30% of the nation's apparel sales. However, "broadline" retailers, selling everything from furniture to household goods to food, are expected to bear the brunt of the storm. Clothing retailers, in contrast, might see some benefit from people seeking refuge in malls from the extreme weather. BJ's Wholesale Club (BJ), with 70% of its warehouse clubs in the Northeast, could be pressured more than, say, Wal-Mart's Sam's Club, with its roots in the South. Ross Stores (ROST), with a big California presence, could post better numbers than, say, TJX (TJX), whose off-price T.J. Maxx and Marshall's brands claim the Northeast as a stronghold.

Still, the biggest immediate impact from the lousy weather will be felt among the retailers, particularly those with heavy presences in the most affected states. The Northeast, for example, accounts for roughly 30% of the nation's apparel sales. However, "broadline" retailers, selling everything from furniture to household goods to food, are expected to bear the brunt of the storm. Clothing retailers, in contrast, might see some benefit from people seeking refuge in malls from the extreme weather. BJ's Wholesale Club (BJ), with 70% of its warehouse clubs in the Northeast, could be pressured more than, say, Wal-Mart's Sam's Club, with its roots in the South. Ross Stores (ROST), with a big California presence, could post better numbers than, say, TJX (TJX), whose off-price T.J. Maxx and Marshall's brands claim the Northeast as a stronghold.

Still, the biggest immediate impact from the lousy weather will be felt among the retailers, particularly those with heavy presences in the most affected states. The Northeast, for example, accounts for roughly 30% of the nation's apparel sales. However, "broadline" retailers, selling everything from furniture to household goods to food, are expected to bear the brunt of the storm. Clothing retailers, in contrast, might see some benefit from people seeking refuge in malls from the extreme weather. BJ's Wholesale Club (BJ), with 70% of its warehouse clubs in the Northeast, could be pressured more than, say, Wal-Mart's Sam's Club, with its roots in the South. Ross Stores (ROST), with a big California presence, could post better numbers than, say, TJX (TJX), whose off-price T.J. Maxx and Marshall's brands claim the Northeast as a stronghold.