Editor's Note:

In addition to tonight's new candidates here is a list of stocks that caught my eye as potential trading ideas:

HFC, COH, TIF, SRCL, EL, AMZN, CRM, SPG, BCR, GR, WPI, ATI, DV, CLH, ARE, TUP, CPO, CRS, and TGI.

- James


NEW DIRECTIONAL CALL PLAYS

Helmerich & Payne Inc. - HP - close: 71.30 change: +2.18

Stop Loss: 67.75
Target(s): 76.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HP is an oil and gas drilling stock that is breaking out past major resistance at the $70.00 level. The stock is now poised to make a run at its all-time highs near $77.00. I am suggesting bullish positions now. However, we only want to launch positions if both HP and the S&P 500 are positive tomorrow morning. Nimble traders might want to try and buy a dip near the $70.00 level instead. Our target is $76.50. We do not want to hold over the July 29th earnings report. FYI: The Point & Figure chart for HP is bullish with a $90 target.

buy calls if both HP and the S&P 500 are positive tomorrow morning.

- Suggested Positions -

buy the AUG $75 call (HP1120H75) current ask $1.45

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 07/29/11 (confirmed)
Average Daily Volume = 1.3 million
Listed on July 19, 2011


Mead Johnson Nutrition Co. - MJN - close: 69.84 change: +1.29

Stop Loss: 67.99
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: up to July 27th.
New Positions: Yes, see below

Company Description

Why We Like It:
MJN produces and sells infant and children food products across the globe. The stock is currently poised to hit new all-time highs if it can breakout past resistance at $70.00. MJN has spent the last two and a half weeks consolidating sideways in the $68-70 range. I am suggesting a trigger to buy calls at $70.25. If triggered we'll start with a stop loss at $67.99 and a target at $74.75. More conservative traders may want to consider a stop closer to $69 instead. We do not want to hold over the July 28th earnings report. FYI: The Point & Figure chart for MJN is bullish with a $95 target.

Trigger @ 70.25

- Suggested Positions -

buy the AUG $70 call (MJN1120H70) current ask $1.81

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 07/28/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on July 19, 2011