Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas:

ANF - the midweek bounce in ANF just reversed. The stock looks poised to break below support. A drop under $44.00 or $43.50 might be a bearish entry point.

WPI - shares have been a little volatile lately but the overall trend looks bearish, especially with the oversold bounce failing at resistance near $60 on Friday.

ESRX - this stock continues to drift higher and I would be tempted to buy it here or on a bounce near the $50 level.

MLM - traders bought the dip on Friday. If MLM opens positive on Monday I would be tempted to buy calls.

SIAL - shares look poised to extend their gains after the recent breakout past the 200-dma.

UPDATE: The Greece/PSI negotiations over the weekend appear to have broken down. This is definitely a negative since so many were expecting a resolution with private sector investors (PSI) over the details of the Greek debt haircut by Monday. Monday morning could see a spike downward. We'll have to wait and see if there are any new headlines produced on Sunday.


NEW DIRECTIONAL CALL PLAYS

Cognizant Technology - CTSH - close: 70.17 change: +0.35

Stop Loss: 68.75
Target(s): 76.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the Feb. 8th earnings
New Positions: Yes, see below

Company Description

Why We Like It:
It was a bullish week for CTSH. Traders bought the dip near $68 and its 200-ema and finally pushed the stock past technical resistance at the simple 200-dma. I still see some resistance just under $71.00 so we want to use a trigger to buy calls at $71.05. If triggered our target is $76.50. We do not want to hold over the Feb. 8th earnings report. FYI: The Point & Figure chart for CTSH is bullish with an $85 target.

Trigger @ $71.05

- Suggested Positions -

buy the Feb $75 call (CTSH1218B75) current ask $0.90

Annotated Chart:

Entry on January xx at $ xx.xx
Earnings Date 02/08/12 (confirmed)
Average Daily Volume = 2.3 million
Listed on January 21, 2012


Flowserve Corp. - FLS - close: 107.18 change: -1.11

Stop Loss: 104.75
Target(s): 114.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This industrial-sector stock saw some profit taking on Friday but the overall trend is bullish. We want to take advantage of the dip and buy calls on FLS on Monday morning but only if both FLS and the S&P 500 index open positive. If the S&P 500 opens flat (unlikely) then we'll base our entry on FLS' open. More conservative traders may want to wait for FLS to rise pat $108.50 before opening new positions. We are setting our stop loss at $104.75, just under Wednesday's low. I am setting our target at $114.50 but cautious traders may want to exit at $112.00 instead. FYI: The Point & Figure chart for FLS is bullish with a $139 target.

*See Entry Details Above*

- Suggested Positions -

buy the FEB $110 call (FLS1218B110) current ask $2.25

- or -

buy the APR $115 call (FLS1221D115) current ask $3.80

Annotated Chart:

Entry on January xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 400 thousand
Listed on January 21, 2012


NEW DIRECTIONAL PUT PLAYS

Deckers Outdoor Corp. - DECK - close: 83.87 change: -1.27

Stop Loss: 85.25
Target(s): 77.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shoe company DECK has been underperforming the market the last several days. Friday saw a spike higher thanks to positive analyst coverage but the rally reversed. Aggressive traders might want to consider new put positions now. I am suggesting we wait for DECK to break below short-term support near $83.00. We will use a trigger at $82.75. If triggered I am suggesting small positions with a stop loss at $85.25. Our target is $77.00. We want to keep our position size small because any unexpected rally might spark some short covering. The most recent data listed short interest at 14% of the relatively small 37.1 million-share float.

Trigger @ 82.75 (Small Positions)

- Suggested Positions -

buy the FEB $80 PUT (DECK1218N80) current ask $2.75

Annotated Chart:

Entry on January xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on January 21, 2012