Editor's Note:

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

NKE, AAP, NBL, COO, PPG, CBE, UTHR


NEW DIRECTIONAL CALL PLAYS

Monsanto - MON - close: 82.29 change: +1.76

Stop Loss: 78.99
Target(s): 86.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
There is growing speculation that the Federal Reserve will announce some form of QE3 this year. That will be bullish for most of the commodity-related stocks. MON could be one of them. Shares displayed relative strength today with a +2.1% gain and a breakout from a two-week sideways consolidation under the $82 level.

I am suggesting we open small bullish positions if MON can trade at $82.75 or higher. MON can be somewhat volatile so we want to keep our position size small. If triggered our target is $86.90. FYI: The Point & Figure chart for MON is bullish with a long-term $113 target.

Trigger @ $82.75 (small positions)

- Suggested Positions -

buy the FEB $85 call (MON1218B85) current ask $0.79

- or -

buy the MAR $85 call (MON1217C85) current ask $1.76

Annotated Chart:

Entry on January xx at $ xx.xx
Earnings Date 01/05/12
Average Daily Volume = 4.8 million
Listed on January 30, 2012