Editor's Note:

In addition to tonight's new candidate(s), 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) ITW, TSO, MPC, V, TRMB, CVX, MON, WLK, SIX, MHK, OPEN, COST, NTRS,

(bearish ideas) PCYC, DECK,


NEW DIRECTIONAL CALL PLAYS

Alexion Pharma. - ALXN - close: 110.61 change: +1.58

Stop Loss: 107.25
Target(s): 118.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The biotech sector has been showing strength, just look at the IBB ETF or the $BTK index. ALXN has been doing its part to push the sector higher. The stock just broke out past resistance at $110 to close at a new all-time high.

We want to jump on board. I am suggesting bullish positions on Monday morning with a stop loss at $107.25. Our multi-week target is $118.50. The great thing about stocks at an all-time high is that there is no overhead supply. For example with ALXN, there is no one waiting for shares to hit $115 so they can sell it and get out where they got in to begin with. Although at this point every $5.00 mark could be round-number resistance. FYI: The Point & Figure chart for ALXN is bullish with a $124 target.

- Suggested Positions -

buy the Oct $115 call (ALXN1220j115) current ask $3.00

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 905 thousand
Listed on September 08, 2012


NEW DIRECTIONAL PUT PLAYS

O'Reilly Automotive - ORLY - close: 83.25 change: -0.41

Stop Loss: 86.05
Target(s): 77.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The tables have turned for ORLY. Shares were looking top heavy back in early May. There was the huge gap down in June on disappointing earnings guidance. ORLY managed a very strong three-week bounce only to fail once it had failed the gap. Since then ORLY has been struggling with a bearish trend of lower highs. The action on Thursday this past week looks like a failed rally at resistance. My only concern here is the rising 300-dma, which is currently at $81.50. The 300-dma could be technical support.

I am suggesting new bearish positions at the open on Monday morning but we will want to keep our position size small just in case ORLY bounces on that 300-dma. Our target is $77.50. FYI: The Point & Figure chart for ORLY is bearish with a long-term $48 target.

- Suggested *Small* Positions -

buy the Oct $80 PUT (ORLY1220v80) current ask $1.70

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.2 million
Listed on September 08, 2012