Editor's Note:

In spite the recent volatility in stocks the market's trend remains higher. I am cautiously bullish but readers will want to seriously consider keeping their position size small to limit your risk. Normally the market gets frothy (more volatile) at tops and bottoms.

In addition to tonight's new candidates readers may want to consider these stocks as potential plays but I have to caution you, some of these are look like high-risk/reward bets.

AMZN - Aggressive traders could buy the bounce from $170 with a tight stop but I would only aim for a rebound toward resistance near $180 and its 50-dma.

CRM - Aggressive traders could buy the dip now with a tight stop or wait for a rally past $133-134 as their entry point. Look for a rally toward the $142-145 zone.

CSX - There is no fear of higher oil prices in this railroad stock's chart. I would be tempted to buy calls now or you could wait for a dip near $72.50-73.00. Target the $80 area.

- James


NEW DIRECTIONAL CALL PLAYS

Citrix Systems Inc. - CTXS - close: 71.88 change: +1.38

Stop Loss: 67.40
Target(s): 77.00, 79.90
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CTXS appears to be breaking out from a consolidation of higher lows and lower highs. Shares were showing relative strength on Friday with a +1.9% gain. I am suggesting small bullish positions now. We want to keep our positions small to limit our risk. The recent highs near $73.00 could be resistance so more conservative traders might want to wait for a breakout to new highs. The intraday high was $73.62.

I do consider this a slightly more aggressive trade. We'll put our stop loss under last week's low and under its 50-dma. Our targets are $77.00 and $79.90. The Point & Figure chart for CTXS is bullish with a $94 target.

- Open Small Bullish Positions -

Buy the April $75 calls (CTXS1116D75) current ask $2.20

Annotated Chart:

Entry on March 7th at $ xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on March 5th, 2010


Devon Energy - DVN - close: 91.12 change: +0.96

Stop Loss: 87.75
Target(s): 94.85, 99.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This is a simple momentum trade. There was no follow through on DVN's bearish reversal on March 1st. Traders quickly bought the dip. Now DVN is poised to breakout to new relative highs. Shares have a consistent trend of higher lows so we can place our stop loss near the 30-dma at $87.75. Our exit targets are $94.85 and $99.00. Let's keep our position size small since the market has been a little bit volatile lately.

- Small Bullish Positions -

Buy the April $95 calls (DVN1116D95) current ask $1.63

- or -

Buy the July $95 calls (DVN1116G95) current ask $4.25

Annotated Chart:

Entry on March 7th at $ xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on March 5th, 2010