Editor's Note:

The S&P 500 is bouncing from round-number, psychological support at the 1300 level as traders step in and buy the dip. We're seeing a similar pattern across the market. There were too many candidates to choose from. In addition to tonight's new plays I'm providing a list of stocks that caught my eye. This list of stocks could offer additional bullish opportunities but you do need to do your homework. A few like BIO have wide option spreads. A couple of them might have earnings in March.

On my radar screen: ROST, CHRW, CTXS, BIIB, AMGN, ESS, BIO, RE, AAPL, OII, PRGO, SLG, RBC, CME, HES, SYK, AMT, WYNN, AMG, and CMP.

- James


NEW DIRECTIONAL CALL PLAYS

Baker Hughes Inc. - BHI - close: 71.50 change: +2.56

Stop Loss: 67.90
Target(s): 74.75, 79.00
Current Option Gain/Loss: + 0.0% and + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BHI is an oil service stock. As you know oil has seen a lot of strength and volatility due to the unrest and violence in the Mideast. While crude oil might see some profit taking as tensions ease (or not) the trend in oil and oil service names is still up. BHI did not see a lot of profit taking during the market's recent sell-off. The $68.00 level is short-term support. I am suggesting bullish positions now. More conservative traders may want to wait for a breakout past $72.00. Our targets are $74.75 and $79.00.

- Suggested Positions -

Buy the March $75 calls (BHI1119C75) current ask $1.03

- or -

Buy the April $75 calls (BHI1116D75) current ask $2.08

Annotated Chart:

Entry on February 28th at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on February 26th, 2010


Check Point Software - CHKP - close: 50.29 change: +0.81

Stop Loss: 47.90
Target(s): 54.50
Current Option Gain/Loss: +0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Prior resistance near $48.00 is now new support. Traders are buying the dip and CHKP is poised to continue its trend higher. I am suggesting bullish positions now with a stop loss at $47.90. Our target is $54.50. We only have three weeks left on March calls so you may want to play Aprils.

- Suggested Positions -

Buy the March $50 calls (CHKP1119C50) current ask $1.50

- or -

Buy the April $52.50 calls (CHKP1116D52.5) current ask $1.10

Annotated Chart:

Entry on February 28th at $ xx.xx
Earnings Date 04/26/11 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on February 26th, 2010


FactSet Research Systems - FDS - close: 105.00 change: +3.65

Stop Loss: 99.95
Target(s): 109.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
FDS has produced a near perfect bounce from round-number, psychological support at the $100.00 mark. Plus, the stock has produced a three-candlestick bullish reversal pattern on the daily chart. Furthermore FDS has yet to violate its long-term up trend. I am very tempted to buy calls right here at $105.00 but Friday's gain (+3.6%) was a bit much. I would rather wait for a dip so I'm suggesting we use a trigger at $104.00 to open bullish positions. More conservative traders could hope for a dip to $103.00 or $102.50 instead. We'll use a stop loss at $99.95. If we are triggered at $104.00 our target is $109.50. I would be tempted to aim higher but we only have two or three weeks. FDS is due to report earnings in mid March but we don't have a confirmed date yet.

Trigger @ $104.00

- Suggested Positions -

Buy the March $105 calls (FDS1119C105) current ask $2.60

Annotated Chart:

Entry on February xxth at $ xx.xx
Earnings Date 03/15/11 (unconfirmed)
Average Daily Volume = 213 thousand
Listed on February 26th, 2010


Fossil, Inc. - FOSL - close: 77.87 change: +3.06

Stop Loss: 72.49
Target(s): 82.00, 88.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
FOSL sells watches, sunglasses and other accessories through a wide variety of brand names. Big picture there is concern that rising oil and thus fuel prices will reduce consumers' spending money for discretionary purchases yet the overall trend for FOSL is still very bullish. Traders were quick to buy the bounce near support. Once again I am tempted to buy calls right here but Friday's gain (+4%) was a lot.

I am suggesting a trigger to buy calls on a dip at $76.75. If triggered we will use a stop loss at 72.49. Our exit targets are $82.00 and $88.00.

Trigger @ 76.75

- Suggested Positions -

Buy the March $80 calls (FOSL1119C80) current ask $2.15

- or -

Buy the April $80 calls (FOSL1116D80) current ask $3.50

Annotated Chart:

Entry on February xxth at $ xx.xx
Earnings Date 05/11/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on February 26th, 2010


IntercontinentalExchange, Inc. - ICE - cls: 126.91 chg: +3.27

Stop Loss: 119.90
Target(s): 138.00, 148.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
There has been a lot of talk and focus on the various stock, option, and derivatives exchanges ever since the German Deutsche Börse proposed a merger to buy the NYSE Euronext exchange a couple of weeks ago. Many believe there will be a lot more consolidation in the business as exchanges seek to partner up or get left out.

Traders quickly bought the dip in ICE near prior resistance around the $120-121 area. The bounce from this support looks like a new bullish entry point. My biggest concern is that ICE could announce their own merger news and if investors don't like the deal or think ICE is paying too much then shares of ICE will gap open lower. Even now there is speculation that ICE might team up with the NASDAQ to counter the bid by the Germans to buy the NYSE. Therefore I am suggesting we keep our positions pretty small to limit our risk. I am suggesting bullish positions now. More conservative traders may want to wait for a dip back into the $124-122 zone. We'll use a stop loss at $119.90. Our targets are $138.00 and $148.00.

I want to warn you that the March options will probably be extremely volatile.

- Suggested Positions - (Small Positions Only)

Buy the March $130 calls (ICE1119C130) current ask $2.50

- or -

Buy the April $135 calls (ICE1116D135) current ask $2.70

Annotated Chart:

Entry on February 28th at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 938 thousand
Listed on February 26th, 2010


Jones Lang Lasalle Inc. - JLL - close: 97.50 change: +2.90

Stop Loss: 93.30
Target(s): 102.50, 109.00
Current Option Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
A very strong earnings report in early February was enough to power JLL past major resistance at $90.00. While the recent profit taking looks ugly traders were buying the dip at technical support. The recent low was $93.40. I am suggesting bullish positions now with a stop loss at $93.30. More aggressive traders could put their stops under $90.00, which should be much, much stronger support. JLL has see a lot more volatility in the last month so let's keep our position size small to reduce our risk. Our targets are $102.50 and $109.00.

FYI: March options are likely to be very volatile.

- Suggested Positions - (Small Positions)

Buy the March $100 calls (JLL1119C100) current ask $1.60

- or -

Buy the April $100 calls (JLL1116D100) current ask $3.20

Annotated Chart:

Entry on February 28th at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 386 thousand
Listed on February 26th, 2010


Transocean Ltd. - RIG - close: 82.80 change: +2.18

Stop Loss: 79.75
Target(s): 89.50, 94.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
RIG is another oil service stock. Shares saw a little volatility last week as investors reacted to the earnings report but traders did buy the dip at technical support. Aggressive traders could open positions now. I see short-term resistance at $84.00 so I am suggesting we wait for a breakout. I am suggesting a trigger to buy calls at $84.25. If triggered we'll use a stop loss at $79.90. Our profit targets are $89.50 and $94.00.

Please note that the March calls will likely be very volatile.

Trigger @ 84.25

- Suggested Positions -

Buy the March $85 calls (RIG1119C85) current ask $1.40

- or -

Buy the April $85 calls (RIG1116D85) current ask $2.90

Annotated Chart:

Entry on February xxth at $ xx.xx
Earnings Date 05/05/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on February 26th, 2010


Waters Corp. - WAT - close: 82.44 change: +0.84

Stop Loss: 79.80
Target(s): 86.00, 89.90
Current Option Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WAT offers a wide variety of scientific testing tools and equipment. You'll notice that in the past two weeks the stock has broken out past major resistance near $80 and during the market's sell-off WAT found support at this prior resistance. I am suggesting we buy calls now on this bounce with a stop loss at $79.80. Our targets are $86.00 and $89.90.

FYI: The March calls will likely be very volatile.

- Suggested Positions -

Buy the March $85 calls (WAT1119C85) current ask $0.85

- or -

Buy the April $85 calls (WAT1116D85) current ask $1.70

Annotated Chart:

Entry on February 28th at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 876 thousand
Listed on February 26th, 2010