Editor's Note:

In addition to tonight's new candidates, check out these symbols:

BIIB - a rally past $102.50 might be an entry point on BIIB. I'd target a move toward the $109-110 zone.

CHKP - I was tempted to buy calls on CHKP with a trigger to open positions above $58.35 but earnings are coming up soon next Tuesday. Nimble traders might want to consider it. I would not hold over earnings.

SHPGY - After three days of consolidating sideways this drug stock appears to be breaking the bearish trendline of lower highs. Traders could buy calls and target potential resistance at $100 or target a move toward the $104-105 area.

EVEP - This energy stock looks poised to breakthrough its three-week trendline of lower highs.

- James


NEW DIRECTIONAL CALL PLAYS

Alexion Pharma - ALXN - close: 67.38 change: +1.41

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
We recently traded ALXN as it rallied toward $70.00. Shares continue to look strong and displayed relative strength again today. There was no follow through on yesterday's reversal from $70.00 as traders bought the dip near $65.40. If the stock market can keep the rally alive then I would look for ALXN to hit new highs.

I am suggesting small bullish positions now but only if both ALXN and the S&P500 index both open positive tomorrow morning. We'll use a stop loss at $64.90. Cautious traders could use a stop near $65.40 instead. The $70.00 level is short-term resistance but our target is $74.00.

NOTE: We do not want to hold over the Oct. 20th earnings report.

*See Entry Details Above* (Small Positions)

- Suggested Positions -

buy the NOV $70 call (ALXN1119K70) current ask $2.80

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on October 13, 2011


Ingram Micro - IM - close: 18.86 change: +0.29

Stop Loss: 18.25
Target(s): 21.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
IM has been screaming higher. The stock tagged a new 52-week low last week when the market broke down a week ago Tuesday. The bullish reversal has been significant. It looks like a short squeeze but the most recent data did not list a lot of short interest. Now this week the stock has been consolidating under resistance at its simple 200-dma. Today's show of relative strength is a technical breakout above that moving average. Aggressive traders may want to buy calls now. I still see resistance in the $19.00-19.20 zone.

I am suggesting we open small bullish positions at $19.25 with a stop loss at $18.25. Our target is $21.00, near the top of the gap back in April. FYI: The P&F chart has turned bullish with a $25 target.

Trigger @ $19.25 (small positions!)

- Suggested Positions -

buy the NOV $20 call (IM1119K20) current ask $0.45

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on October 13, 2011