Editor's Note:

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

(bearish ideas): NFLX, IPGP, OSIS, and GMCR all look bearish.


NEW DIRECTIONAL CALL PLAYS

Caterpillar - CAT - close: 100.43 change: -3.14

Stop Loss: 99.70
Target(s): 104.50
Current Option Gain/Loss: Unopened
Time Frame: 1 to 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of CAT have seen a -14% correction from its late February highs. Today the stock was plunging lower and underperformed the market with a -3.0% drop. Yet traders bought the dip near round-number, psychological support at the $100 level. Now after Alcoa (AA)'s better than expected earnings report after the bell tonight we could see the industrial names, like CAT, see a bounce tomorrow.

This is an aggressive trade. The market's short-term trend and CAT's are both down. This looks like a good spot to speculate on a bounce. I am suggesting small bullish positions at the open tomorrow but only if both CAT and the S&P 500 index open positive. If that requirement is not met then no trade.

We'll use a stop loss at $99.70, just under today's low. Our short-0term target is $104.50.

Do not enter position unless CAT and the S&P 500 are both positive at the open

- Suggested (small) Positions -

Buy the Apr $105 call (CAT1221D105) current ask $0.65

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 04/25/12 (confirmed)
Average Daily Volume = 6.3 million
Listed on April 10, 2012


NEW DIRECTIONAL PUT PLAYS

Ryder System, Inc. - R - close: 50.13 change: -1.78

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of R have been working on a bearish trend of lower highs for weeks. The stock made a lot of progress breaking support in the $51-50 zone today but shares closed at $50.13. The intraday low was $49.97.

I am suggesting a trigger to buy puts at $49.75 with a stop at $52.05. Our target is $45.50. We do not want to hold over the late April earnings report.

Trigger @ 49.75

- Suggested Positions -

buy the Apr $50 PUT (R1221P50) current ask $1.05

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 567 thousand
Listed on April 10, 2012