Editor's Note:

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

CAT - if you're looking for bearish put candidates I'd check out CAT. The stock has broken down under what should have been support near $110 and its simple 50-dma. Traders could target a dip toward the $105 area or its 100-dma.

DO - A three-day pullback in oil service stock DO has left shares testing support near $70.00. The intraday bounce today looks like a potential bullish entry point but I am concerned with weakness in the OIX oil index and OSX oil services index. Trade DO cautiously.

BRK.B - Berkshire broke out past resistance near $80 a few days ago. Now it's churning sideways in the $81.00-81.50 area. A new rally past $81.60 could be a bullish entry point.


NEW DIRECTIONAL CALL PLAYS

Cognizant Technology - CTSH - close: 76.94 change: +1.17

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Technology stocks continue to perform well. CTSH was outperforming all of the major indices on Wednesday with a +1.5% gain. This is a continuation of yesterday's bounce from support near $75 and its 10-dma. CTSH has short-term resistance in the $77.00-77.40 area. I am suggesting we buy calls at $77.55 with a stop loss at $74.75. Our exit target is $82.00. FYI: The Point & Figure chart for CTSH is bullish with a $97 target.

Trigger @ $77.55

- Suggested Positions -

buy the Apr $77.50 call (CTSH1221D77.5) current ask $1.60

- or -

buy the May $80 call (CTSH1219E80) current ask $1.85

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 05/04/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 21, 2012