Editor's Note:

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

(bullish ideas) RKT, ALGT, SHW, SNI, UA, WFM, SAM, SXCI, ORLY, CYMI,


NEW DIRECTIONAL CALL PLAYS

Dollar Tree, Inc. - DLTR - close: 106.72 change: +1.89

Stop Loss: 103.45
Target(s): 112.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the stock split
New Positions: Yes, see below

Company Description

Why We Like It:
Discount stores like DG, FDO and DLTR were all showing relative strength on Friday. DLTR looks the strongest with the breakout to new all-time highs past resistance in the $104-105 area. The stock has seen impressive gains over the last two years and management declared a 2-for-1 stock split in late May. The split will occur on Tuesday, June 26th.

I am suggesting we open bullish positions on Monday morning but *ONLY* if both DLTR and the S&P 500 index open positive. If those conditions are not met we will not open positions. If our trade does open then we want to exit prior to the stock split.

We will tentatively set an exit target at $112.50 with a stop loss at $103.45.

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

- Suggested Positions -

buy the Jul $110 call (DLTR1221G110) current ask $2.20

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on June 09, 2012


Fossil, Inc. - FOSL - close: 76.15 change: +1.80

Stop Loss: 72.65
Target(s): 84.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FOSL makes and markets a number of accessories and watches. The company reported earnings back in early May and the stock was crushed when management warned with lowered guidance. Now FOSL has spent four weeks building a base near support at $70.00. The early June dips under $70 look like a bear trap pattern. Now FOSL is on the rebound.

Technically a 38.2% Fibonacci retracement of the decline would put FOSL at $96. We are aiming for $84.50 while more aggressive traders could aim for the $89-90 zone. However, please note that we want to open small bullish positions on Monday but *ONLY* if both FOSL and the S&P 500 index open positive. If not, then don't enter positions yet.

FOSL can be a volatile stock so we want to keep our position size small. We'll start with a stop loss under Friday's low at $72.65.

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

- Suggested Positions -

buy the Jul $80 call (FOSL1221G80) current ask $3.00

Annotated Chart:

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/07/12 (unconfirmed)
Average Daily Volume = 1.45 million
Listed on June 09, 2012