Editor's Note:

In addition to tonight's new candidate, check out these stocks that caught my eye.

EW is in the healthcare sector and shares are showing strength. My biggest concern is that option spreads are pretty wide.

PVH broke through short-term resistance at $62.00 and its 100-dma today. The stock appears to have formed a bottom. This might be a new entry point for calls although the $64 level has been resistance in the past.

TUP is showing relative strength and hit new all-time highs today.

- James


NEW DIRECTIONAL CALL PLAYS

Stericycle Inc. - SRCL - close: 87.69 change: +0.14

Stop Loss: 84.95
Target(s): 94.00, 99.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
SRCL is a waste management company. The stock popped higher back in early February following its better than expected earnings report. Shares have spent the last four weeks digesting those gains in an $83-88 trading range. Now SRCL is flirting with a breakout above resistance.

I am suggesting a trigger to buy calls at $88.25. If triggered our targets are $94.00 and $99.00. The $90 level could be round-number resistance but after four weeks of consolidating sideways I'm not expecting $90 to be an issue. Let's keep our position size small to limit our risk.

Trigger @ 88.25

- Suggested Positions -

Buy the April $90 calls (SRCL1116D90) current ask $1.60

- or -

Buy the May $95 calls (SRCL1121E95) current ask $1.10

Annotated Chart:

Entry on March xxth at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 481 thousand
Listed on March 9th, 2010