Editor's Note:

Bullish candidates were easy to find today but most of them are starting to look a little overbought. Here's a short list you'll want to keep an eye on:

CLB is challenging round-number resistance at $100. A dip near $96.00 might be a new bullish entry point.

DO is another oil service stock that is nearing resistance at $95.00. Readers can buy calls on a breakout.

LLL is a defense contractor that has broken resistance near $76.00 but appears to have additional resistance near $80.00. I'd consider calls on a dip at $76.00 or over $81.00.

SPW has broken out to new highs but looks over extended. Consider calls on a dip near $60 or $58.00 again.


NEW DIRECTIONAL CALL PLAYS

Alcon Inc. - ACL - close: 136.75 change: +1.32 stop: 129.49

Why We Like It:
ACL makes medical and surgical equipment and eye care products (like contacts) and the stock has been steadily marching higher. The bounce from the $133.50 level today looks like a new entry point to buy calls. I'm suggesting new positions now with a stop loss at $129.49. More conservative traders may want to consider a tighter stop in the $131-132 zone. Our first target is $142.50. Our second target is $148.00.

Suggested Options:
I'm suggesting the October calls. We want to use small positions as open interest is relatively small.

BUY CALL OCT 135 ACL-JG open interest= 59  current ask $5.20
BUY CALL OCT 140 ACL-JH open interest=105  current ask $2.65
BUY CALL OCT 145 ACL-JI open interest= 76  current ask $1.20

Annotated Chart:

Picked on September 10 at $136.75
Change since picked:       + 0.00
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009