Editor's Note:

In addition to tonight's new trading candidates, check these out:

MXIM - some of the semiconductor stocks are showing strength. MXIM is breaking out from its recent trading range. Today's move could be an entry point for bullish positions.

NVLS - here is another tech stock that is poised to breakout from its trading range. I would be tempted to buy it now.

- James


NEW BULLISH Plays

CBOE Holdings, Inc. - CBOE - close: 26.30 change: +0.63

Stop Loss: 24.75
Target(s): 29.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Option trading volumes are surging, which should mean a strong quarter for the CBOE. The stock has developed a bullish trend of higher lows and higher highs since the first week of August. In just the last few days CBOE has broken out above its 200-dma and retested it as new support. Today's close over potential resistance at $26.00 is bullish.

I am suggesting bullish positions now but only if the CBOE and the S&P 500 index both open positive tomorrow. I do need to label this as a slightly more aggressive trade. While things look good on a short-term basis the long-term weekly chart is showing potential resistance (see below). Readers may want to wait for a close over that trendline before considering new bullish positions.

*See Play Details for Entry Point*

Suggested Position: buy CBOE stock @ the open

- or -

buy the OCT $27 call (CBOE1122J27) current ask $1.05

Annotated chart:

Weekly chart:

Entry on September xx at $ xx.xx
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on September 12, 2011


Hansen Medical Inc. - HNSN - close: 4.20 change: +0.19

Stop Loss: 3.73
Target(s): 4.85, 5.20
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HNSN is in the medical robotics industry. Shares have spent about two weeks consolidating sideways under resistance at the $4.00 level. The stock closed at $4.01 on Friday. Today shares displayed relative strength with a +4.7% gain and a confirmation of the breakout past $4.00.

The stock can be volatile so we want to keep our position size small. I am suggesting bullish positions now but only if HNSN and the S&P 500 index both open positive tomorrow morning. We'll start with a stop loss at $3.73. Conservative traders may want a stop closer to today's low (3.90) while aggressive traders may want a stop under Friday's low (3.61).

*See Play Details for Entry Point*

Suggested Position: buy HNSN stock @ open

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 963 thousand
Listed on September 12, 2011