Editor's Note:

In addition to tonight's new trades, readers may want to put these stocks on their watch list for an entry point:

(call) INFY, (puts) APC, NOV, BA

FYI: Tuesday produced a one-day bullish reversal pattern and stocks rallied for two more days. Friday's session produced plenty of one-day bearish reversal patterns. If you are curious here is a list of stocks that appeared to reverse on Friday. Just remember that there is no guarantee they are moving lower on Monday.

BEN, PSA, BLK, ISRG, WYNN, CF, BXP, EOG, WAT, VNO, PXD, COG, DVA, ACE, ROK, CLF, WHR, SWK, HES, MOS, TRV, HCN, PRU, COV, NFX, AFL, NTRS, AIZ, PCL, BTU, SWN, FCX, HOG, NUE, STT, MET, VMC, QEP, MMC, CINF, FLIR, C, ALL, URBN, LUK, PFG, MRO, X, AIV, PBI, JNPR, XL, FII, MS, NBR , SLM, FITB, PCS, LUV MAS, JNS, HCBK, AMD, and S

- James


NEW DIRECTIONAL CALL PLAYS

Green Mountain Coffee Roasters - GMCR - cls: 92.06 chg: +0.91

Stop Loss: 89.90
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: less than 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GMCR displayed a little relative strength on Friday with a +0.2% gain. You could argue that shares look bearish with the stock's inability to breakout back above technical resistance at the simple 100-dma. On the other hand, GMCR's bounce from its August lows is arguably bullish.

Short-term, if the market cooperates, GMCR appears headed toward what is likely resistance at $100 and its 50-dma. The intraday high on Friday was 493.47. I am suggesting a trigger to buy calls at $93.55. If triggered, we do want to keep our position size small. GMCR can be a very volatile stock. Our exit target is $99.75. More aggressive traders could aim higher. We'll use a stop at $89.90.

This should be a short-term trade so I'm listing October options, which expire in two weeks.

Trigger @ 93.55 (Small positions)

- Suggested Positions -

buy the OCT $95 call (GMCR1122J95) current ask $4.05

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on October 08, 2011


NEW DIRECTIONAL PUT PLAYS

CR Bard Inc. - BCR - close: 83.93 change: -1.15

Stop Loss: 86.15
Target(s): 80.15
Current Option Gain/Loss: +0.0%
Time Frame: less than 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BCR produces medical instruments and supplies. The stock has been underperforming. There was no confirmation of the reversal last Tuesday. The rebound failed at $86.00 and now BCR is poised to breakdown to new lows. You can see that BCR remains stuck in its bearish trend of lower highs and lower lows.

I am suggesting bearish positions now. We'll use a stop loss at $86.15. Our target is $80.15. More aggressive traders could aim for the $77-76 area instead. FYI: The Point & Figure chart for BCR is bearish with a $76 target.

This should be a short-term trade so I'm listing October options, which expire in two weeks. You could trade the Oct. $80s but the option spread is a lot wider.

- Suggested Positions -

buy the OCT $85 PUT (BCR1122V85) current ask $3.80

Annotated Chart:

Entry on October 10 at $ xx.xx
Earnings Date 10/17/11 (unconfirmed)
Average Daily Volume = 976 thousand
Listed on October 08, 2011


Pioneer Natural Resources - PXD - cls: 68.45 chg: -1.96

Stop Loss: 71.35
Target(s): 63.50
Current Option Gain/Loss: +0.0%
Time Frame: less than 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The oversold bounce in the oil, gas and energy names has been very strong. Unfortunately for most of them, like PXD, the bounce has stalled or reversed at prior support and what should be new resistance. Essentially the larger trend is still down and this big rebound has produced a new entry point for bearish positions.

PXD hit $71.23 on Friday morning before fading lower and closing down -2.7%. Shares had seen a +20% bounce off its Tuesday low so it's probably time for some profit taking.

I am suggesting small bearish positions now. We'll use a stop loss at $71.35, just above Friday's high. Our target is $63.50. More aggressive traders could aim for the $60 area instead.

This should be a short-term trade so I'm listing October options, which expire in two weeks.

- Suggested Positions -

buy the OCT $65 PUT (PXD1122V65) current ask $1.75

Annotated Chart:

Entry on October 10 at $ xx.xx
Earnings Date 11/01/11 (confirmed)
Average Daily Volume = 2.0 million
Listed on October 08, 2011