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) ROST, MOS, PAA, ROSE, CRS, EMN, SIX, PH, VRX, MHK, OPEN, TSCO, BIDU, CYMI, GMCR

(bearish ideas) BPL, SRE, MCD,


NEW DIRECTIONAL CALL PLAYS

Philip Morris Intl. - PM - close: 93.38 change: +0.09

Stop Loss: 91.40
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of cigarette maker PM have consistently marched higher. The stock currently has a 3.4% yield and shares just closed near all-time highs. We want to jump on board. I am suggesting a trigger to buy calls at $93.60. If triggered we'll use a stop loss at $91.40. Our multi-week target is $99.00. FYI: The Point & Figure chart for PM is bullish with a $106 target.

Trigger @ $93.60

- Suggested Positions -

buy the 2013 Jan $95 call (PM1319A95) current ask $2.78

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 4.2 million
Listed on August 18, 2012


Under Armour, Inc. - UA - close: 57.73 change: +1.23

Stop Loss: 55.70
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
UA is known for its athletic apparel but they're also in the athletic shoe business. The company competes with Nike (NKE) on both fronts. The stock is a popular short due to its rich valuations. The current P/E is 60. Yet that hasn't stopped UA from climbing to new all-time highs this month.

I suspect UA could see another short squeeze. The most recent data listed short interest at 24% of the 78 million share float. The August high was $58.48. I am suggesting a trigger to buy calls at $58.55. We'll use a stop loss at $55.70. Our target is $64.00. FYI: The Point & Figure chart for UA is bullish with a long-term $85 target.

Trigger @ 58.55

- Suggested Positions -

Buy the Oct $60 call (UA1220J60) current ask $2.15

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 2.1 million
Listed on August 18, 2012