Editor's Note:

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

(bullish ideas) EL, AAP, CB, ROST, DKS, ABCO, GCO, HHC, ANDE, NKE, UNH, PNC, THI

(bearish ideas) IYF, DE, RGLD


NEW DIRECTIONAL CALL PLAYS

PriceSmart Inc. - PSMT - close: 79.97 change: +1.81

Stop Loss: 76.99
Target(s): 84.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
PSMT runs a shopping warehouse chain of discount stores. The company reported earnings in early April. PSMT missed bottom line estimate by two cents but beat on revenues. The stock rallied off its earnings news.

The daily chart has an inverse head-and-shoulders pattern that is forecasting an $88 target. PSMT has managed to climb to new all-time highs this past week. I am suggesting a trigger to buy calls at $80.75 with a stop loss at $76.99. Our exit target is $84.75. More conservative traders may want to consider a tighter stop loss. FYI: The Point & Figure chart for PSMT is bullish with a $95 target.

Trigger @ $80.75

- Suggested Positions -

buy the May $80 call (PSMT1219E80) current ask $3.10

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 313 thousand
Listed on April 21, 2012


NEW DIRECTIONAL PUT PLAYS

Jos. A Bank Clothiers - JOSB - close: 47.97 change: -0.65

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: + 0.0% or May$45p: +0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JOSB is a men's apparel chain. The stock had rallied to resistance near $55 in late March. Then JOSB reported earnings that missed both the top and bottom line estimates. The stock was crushed with a gap down toward $50. Management issued cautious comments going forward. Now after two weeks of chopping sideways JOSB is breaking down further.

I am suggesting small bearish positions at the open on Monday. We want to limit our position size because JOSB has an elevated amount of short interest. The most recent data listed short interest at 18.7% of the very small 27.5 million share float and this raises the risk for a short squeeze.

Our short-term target is $45.25. More aggressive traders may want to aim for the $42-41 area instead.

(small positions) - Suggested Positions -

buy the May $50 PUT (JOSB1219Q50) current ask $2.80

- or -

buy the May $45 PUT (JOSB1219Q45) current ask $0.60

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/30/12 (unconfirmed)
Average Daily Volume = 596 thousand
Listed on April 21, 2012