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, MMM, TFM, AMG, ITW, GCO, ACN, FIRE, IBB

(bearish ideas) MNST, CLH


NEW DIRECTIONAL CALL PLAYS

Celgene Corp. - CELG - close: 72.04 change: +0.57

Stop Loss: 70.45
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
We are seeing some strength in the biotech sector and CELG looks poised to breakout past resistance near $72.00. This stock has been building on a bullish trend of higher lows since June.

Friday's high was $72.53. I am suggesting a trigger to buy calls at $72.75 with a stop loss at $70.45. Our target is $77.50. FYI: The Point & Figure chart for CELG is bullish with a $81 target.

Trigger @ 72.75

- Suggested Positions -

buy the Sep $75 call (CELG1221i75) current ask $0.69

- or -

buy the Oct $75 call (CELG1220j75) current ask $1.57

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 2.9 million
Listed on August 25, 2012


United Technologies - UTX - close: 80.08 change: +0.88

Stop Loss: 78.85
Target(s): 84.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
UTX is a major conglomerate and a Dow-component. The stock rallied to new three-month highs a week ago. Now after a four-day consolidation shares look poised to run higher again. Friday's high was $80.20. I am suggesting a trigger to buy calls at $80.30. We'll use a stop loss at $78.85, just under Friday's low of $79.00. Our target is $84.00 but more aggressive traders may want to aim higher.

Trigger @ $80.30

- Suggested Positions -

buy the Sep $80 call (UTX1222i80) current ask $1.61

- or -

buy the Oct $82.50 call (UTX1220j82.5) current ask $1.33

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 3.7 million
Listed on August 25, 2012