Editor's Note:

In addition to tonight's new candidates, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

VSI - shares look bullish and a move over $51.50 could be a bullish entry point.

GPC - the stock is hitting new relative lows. A drop under today's low could be used as a bearish entry point.


NEW DIRECTIONAL PUT PLAYS

NASDAQ OMX Group - NDAQ - close: 21.86 change: +0.47

Stop Loss: 22.55
Target(s): 20.15
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The NASDAQ exchange is still stinging from the black eye it received over the disaster of the FaceBook (FB) IPO two weeks ago. Technical glitches created faulty quotes and delayed orders. Four major market makers are claiming losses of up to $100 million during the ordeal. The most recent quote put losses at $115 million.

Shares of NDAQ spiked today on word that the exchange was prepared to compensate some or all of the market makers involved. The rumor was that the NDAQ might get away with only compensating the market makers for about $13 million - obviously a lot better than the $100 million in alleged losses. We suspect that regulators might get involved and the NDAQ may have to cough up significantly more money.

NDAQ is scheduled to make an announcement tomorrow. This could send the stock soaring higher on short covering is the news is good or plunging if the news is bad. We're betting that the news will not satisfy investors.

I am suggesting small bearish positions at the open tomorrow. This is an aggressive, higher-risk trade. We'll start with a stop loss at $22.55. Our first target is $20.15.

(SMALL Positions) - Suggested Positions -

buy the July $21 PUT (NDAQ1221S21) current ask $0.85

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on June 05, 2012


Novartis AG - NVS - close: 51.48 change: -0.25

Stop Loss: 52.25
Target(s): 48.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Based in Switzerland, NVS is a major drug company. Unfortunately almost anything European these days is in a downtrend. NVS already had a longer-term trend of lower highs. Now the stock is on the verge of breaking down from its three-week trading range.

I am suggesting a trigger to buy puts at $51.00 with a stop loss at $52.25. Our first target is $48.00. FYI: The Point & Figure chart for NVS is bearish with a $41 target.

Trigger @ 51.00

- Suggested Positions -

buy the Jul $50 PUT (NVS1221S50) current ask $0.95

Annotated Chart:

Weekly Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.75 million
Listed on June 05, 2012