Editor's Note:

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

(bullish candidates): WHR, NKE, NUS, ESRX, COH, CVX, MLM, UPS, TUP, CPT, WLL, and UNH


NEW DIRECTIONAL CALL PLAYS

Tractor Supply Co. - TSCO - close: 87.37 change: -0.10

Stop Loss: 84.90
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The threat of higher gasoline prices is not slowing down the rally in retail stocks. The RLX retail index has surged to new record highs. Shares of TSCO are also trading near record, all-time highs. Currently the stock is consolidating in the $85-88 zone. I am suggesting we buy calls if TSCO can trade at $88.50 or higher. If triggered we'll use a stop at $84.90. Our exit target is $94.00. More aggressive trades could aim higher. If you have enough patience you could aim for the $99-100 area instead. The Point & Figure chart for TSCO is bullish with a $109 target.

Trigger @ $88.50

- Suggested Positions -

buy the Apr $90 call (TSCO1221D90) current ask $2.00

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 566 thousand
Listed on March 10, 2012


NEW DIRECTIONAL PUT PLAYS

Union Pacific - UNP - close: 107.64 change: -1.63

Stop Loss: 110.25
Target(s): 101.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Rising gasoline prices should be bullish for the railroad since they are more efficient at moving freight. Yet some of the railroad stocks are trading lower as investors worry about slowing demand for coal and how that will negatively impact the rail business. The most recent data showed that coal volumes fell 15.2% year over year.

UNP's recent oversold bounce off of technical support at its 100-dma, which at the time was also near price support near $105, has already begun to fail. Friday's move looked like a bearish reversal under $110 and its 10-dma. I am suggesting small bearish positions at the open on Monday with a stop at $110.25. Our target is $101.50 since the $100 level and its 200-dma could be support.

*Small Positions* - Suggested Positions -

buy the Apr $105 PUT (UNP1221P105) current ask $2.51

Annotated Chart:

Entry on March 12 at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on March 10, 2012