Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) HMIN, BONT, ARNA

(bearish ideas) SFY, RAIL, DTSI, PANL


NEW BULLISH Plays

AOL Inc. - AOL - close: 37.22 change: +0.45

Stop Loss: 35.49
Target(s): 39.90
Current Gain/Loss: unopened

Entry on October 16 at $ xx.xx
Listed on October 15, 2012
Time Frame: exit prior to the Oct. 31st earnings report
Average Daily Volume = 1.6 million
New Positions: Yes, see below

Company Description

Why We Like It:
AOL has evolved from an Internet service provider to an online content provider. The stock is currently in rally mode with shares hitting new 52-week highs today.

I am suggesting we launch bullish positions now at the open tomorrow. Friday's low was $35.55 so we'll use a stop loss at $35.49 for now. Our target is $39.90.

Suggested Position: buy AOL stock @ (the open)

- (or for more adventurous traders, try this option) -

buy the NOV $38 call (AOL1217k38) current ask $1.20

Annotated chart: