Editor's Note:

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

(bullish candidates): WHR, ALK, DE, CLB, JAZZ, IDXX

I'd also keep an eye on MNST. A rally past $110 could be a bullish entry point. MNST is due to split 2-for-1 on Feb. 16th. I'd wait until after the split occurs if you're going to trade options on it. Resistance at $110 will become $55.

- James


NEW DIRECTIONAL CALL PLAYS

Oil & Gas Exploration ETF - XOP - close: 58.30 change: +0.88

Stop Loss: 56.45
Target(s): 63.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Oil and energy sector stocks are on the move. The XOP looks like it's about to breakout from the short-term $57.00-58.50 trading range. The high today was $58.55. I am suggesting a trigger to buy calls at $58.75. FYI: The Point & Figure chart for XOP is bullish with a $74 target.

Trigger @ $58.75

- Suggested Positions -

buy the Mar $60 call (XOP1217C60) current ask $1.54

- or -

buy the Jun $60 call (XOP1216F60) current ask $3.85

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 3.8 million
Listed on February 13, 2012