Editor's Note:

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

possible bullish candidates: DIN, SLG, CBE

potential bearish candidate: ARG


NEW DIRECTIONAL CALL PLAYS

Dollar Tree - DLTR - close: 86.03 change: +0.35

Stop Loss: 84.75
Target(s): 89.75 & 92.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DLTR continues to build on its bullish trend. Shares are flirting with new record highs. I am suggesting we use a trigger to open bullish positions at $86.75. I am setting individual targets for our options below. Keep a wary eye on the $90.00 level since it might be round-number resistance. FYI: The Point & Figure chart for DLTR is bullish with a long-term $113 target.

(Buy Calls) Trigger @ 86.75

- Suggested Positions -

buy the Feb $87.50 call (DLTR1218B87.5)
exit target: 89.75

- or -

buy the Mar $87.50 call (DLTR1217C87.5)
exit target: 92.50

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on February 02, 2012


Lindsay Corp. - LNN - close: 63.55 change: -0.46

Stop Loss: 61.75
Target(s): 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LNN manufacturers irrigation systems. The stock has been stuck in a $50-64 trading range for months. Over the last few days it looks like shares have been building up steam for a breakout through the top of the range. I am suggesting a trigger to open small bullish positions at $64.50 with a stop loss at $61.75. Our exit target is $69.75. FYI: The Point & Figure chart for LNN is bullish with a long-term $87 target.

(buy calls) Trigger @ $64.50 (small positions)

- Suggested Positions -

buy the Feb $65 call (LNN1218B65)

- or -

buy the Mar $65 call (LNN1217C65)

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 150 thousand
Listed on February 02, 2012