Editor's Note:

FYI: I wanted to share some of the stocks on my watch list tonight.

ISRG, WYNN, SIAL, APOL, SLG, SLH, AGCO, HON, ENR, CHRW, HSIC, CHKP, RYN, ESS, and CTXS.

- James


NEW DIRECTIONAL CALL PLAYS

FactSet Research Systems - FDS - close: 111.44 change: +2.33

Stop Loss: 106.40
Target(s): 114.75, 119.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FDS is delivering a strong performance this week. The stock has broken out to new all-time highs with today's rally past $110. Volume was above average on the rally, which is a good sign. Aggressive traders could buy calls now. I am suggesting a buy-the-dip entry point at $110.25. If triggered our targets are $114.75 and $119.50.

Please note that this is a higher-risk, more aggressive trade because FDS doesn't have a lot of option volume and the option spreads are a little too wide. Keep your position small to limit our risk.

Trigger @ $110.25 (small positions only!)

- Suggested Positions -

Buy the June $115 call (FDS1118F115) current ask $2.05

Annotated Chart:

Entry on May xxth at $ xx.xx
Earnings Date 06/15/11 (unconfirmed)
Average Daily Volume = 211 thousand
Listed on May 10th, 2011


Illumina Inc. - ILMN - close: 75.66 change: +2.39

Stop Loss: 69.90
Target(s): 79.50, 84.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ILMN is in the biotech industry and shares just rally past resistance near $74.00 to hit new all-time highs. Aggressive traders may want to buy calls now. I am suggesting we use a buy-the-dip entry point at $74.50. If triggered we'll use a stop loss at $69.90. Our upside targets are $79.50 and $84.00. There is a pretty good chance that ILMN could see a short squeeze, which is why I would be tempted to buy calls now. However, the newsletter will wait for a dip at $74.50. The Point & Figure chart for ILMN is bullish with a $90 target.

FYI: The most recent data listed short interest in ILMN at 22% of the 121 million-share float.

Trigger @ $74.50

- Suggested Positions -

Buy the June $75 call (ILMN1118F75) current ask $3.30

Annotated Chart:

Entry on May xxth at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 10th, 2011


Tractor Supply Co. - TSCO - close: 61.62 change: +1.08

Stop Loss: 56.99
Target(s): 69.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Specialty retailer TSCO tagged new all-time highs near $65 back in April. The stock has spent about three weeks digesting its gains. Over the last several months investors have been consistently buying dips at TSCO's rising 50-dma. Shares just recently bounced off this technical support. You could argue that the three-week consolidation looks like a bull-flag pattern.

I am suggesting bullish positions right now. As an alternative you could wait for another dip near $60.00. We'll use a stop loss at $56.99, which is just under last week's low. There is resistance at $65.00 but I'm setting our profit target at $69.00. More conservative traders may want to take profits at $64.80 and then sell the rest at $69.00.

Open Bullish Positions Now!

- Suggested Positions -

Buy the June $65 call (TSCO1118F65) current ask $1.00

- or -

Buy the July $65 call (TSCO1116G65) current ask $1.65

Annotated Chart:

Entry on May 11th at $ xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 958 thousand
Listed on May 10th, 2011