Editor's Note:

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

(bullish ideas) ESRX, SRCL, MO, WMT, KMB, AMGN,

(bearish ideas) PH, SINA, GRMN, EOG, CXO, SWK


NEW DIRECTIONAL CALL PLAYS

Dollar General - DG - close: 55.60 change: +0.74

Stop Loss: 53.45
Target(s): 59.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DG runs a huge chain of discount stores. The stock has continued to show relative strength. Today shares outperformed with a +1.3% gain and a bullish breakout past resistance near $55.00.

I am suggesting new bullish positions tomorrow at the open. More conservative traders could wait for a rally past $56.00 instead as their entry point. We'll start with a stop loss at $53.45. Our target is $59.50.

- Suggested Positions -

buy the Aug $55 call (DG1218H55) current ask $2.00

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/30/12 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on July 10, 2012


NEW DIRECTIONAL PUT PLAYS

Fossil, Inc. - FOSL - close: 66.08 change: -1.64

Stop Loss: 70.05
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FOSL makes fashion accessories and watches. The stock is breaking down after a seven-week consolidation sideways above support near $70.00. The early June low was $67.69 and FOSL was testing that low yesterday. Today marks a new relative low and what looks like a failed rally in the $69-70 zone this morning.

I am suggesting new bearish positions at the open tomorrow. Our target is $60.50. FYI: The Point & Figure chart for FOSL is bearish with a $54 target.

- Suggested Positions -

buy the Aug $60 PUT (FOSL1218T60) current ask $2.65

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/07/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on July 10, 2012