Editor's Note:

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

(bullish candidates) ATHN, MHK, V, MDVN, CERN, HAIN, WFM

(bearish candidates) DNB, VAR, ATK,


NEW DIRECTIONAL CALL PLAYS

Edwards Lifesciences - EW - close: 85.05 change: +1.59

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market has had a rough three weeks in May but the correction in EW was relatively tame, especially considering the big gains in this stock off its April lows. You could argue EW was consolidating in a bull-flag pattern.

Now EW is breaking out past its three-week trend of lower highs. I am suggesting bullish call positions at the open tomorrow. We'll start with a stop under today's low. Our target is $89.50. FYI: The Point & Figure chart for EW is bullish with a $126 target.

- Suggested Positions -

buy the Jun $85 call (EW1216F85) current ask $3.40

- or -

buy the Jun $90 call (EW1216F90) current ask $1.15

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 23, 2012


Sourcefire, Inc. - FIRE - close: 55.56 change: +1.46

Stop Loss: 52.75
Target(s): 59.35
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FIRE is in the online and network security business. The big pop in early May was due to better than expected earnings news and the company raising its revenue guidance. The market's correction bought FIRE back down toward technical support at its 40-dma. Now the stock is rising back above resistance near $55.00.

This move looks like a new bullish entry point and could spark some short covering. The most recent data listed short interest at 14% of the very small 28 million share float. We will start with a stop loss under today's low. Our exit target is $59.35.

- Suggested Positions -

buy the Jun $55 call (FIRE1216F55) current ask $3.50

- or -

buy the Jun $60 call (FIRE1216F60) current ask $1.60

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 08/01/12 (unconfirmed)
Average Daily Volume = 857 thousand
Listed on May 23, 2012