Editor's Note:

In addition to tonight's new candidates readers may want to check out WLP and HANS.

If WLP can build on today's rally past its 200-dma it would look like a bullish candidate. Just be aware that the top of the gap down in July near $73.50 might be short-term resistance.

Meanwhile HANS has been showing relative weakness but the stock has stalled near technical support at its rising 100-dma. You may want to wait for a bounce first before considering positions here.

- James


NEW DIRECTIONAL CALL PLAYS

Roper Industries - ROP - close: 79.54 change: +1.04

Stop Loss: 77.25
Target(s): 84.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ROP recently reported earnings that were 5 cents better than expected. Traders bought the dip and now the stock is poised for a breakout past resistance near $80 and the 200-dma. I am suggesting a trigger to buy calls at $80.25 with a stop loss at $77.25. Our target is $84.90. More aggressive traders could aim for the $88.00 area. FYI: The Point & Figure chart for ROP is bullish with a $105 target.

Trigger @ $80.25

- Suggested Positions -

buy the NOV $80 call (ROP1119K80) current ask $2.30

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 01/31/12 (unconfirmed)
Average Daily Volume = 740 thousand
Listed on October 26, 2011


Tractor Supply Co - TSCO - close: 72.41 change: +0.22

Stop Loss: 69.90
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TSCO reported earnings last week. The company beat the earnings estimates, beat the revenue estimate and raised guidance. Shares rallied to new highs on the news. Now the stock is seeing some profit taking. Traders bought the dip today near round-number support at $70.00. The intraday bounce looks like an entry point.

I am suggesting small bullish positions now if both TSCO and the S&P 500 index can open positive tomorrow. If triggered we'll use a stop under today's low at $69.90. Our target is $79.00. FYI: The Point & Figure chart for TSCO is bullish with an $88 target.

*See Entry Details Above* (small positions)

- Suggested Positions -

buy the NOV $75 call (TSCO1119K75) current ask $1.40

- or -

buy the Jan $80 call (TSCO1221A80) current ask $2.15

Annotated Chart:

Entry on October xx at $ xx.xx
Earnings Date 10/19/11
Average Daily Volume = 904 thousand
Listed on October 26, 2011