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) FDO, PXD, PII, VFC, DVA, WXS, RGR, WTW, FISV, ESRX, XOM


NEW DIRECTIONAL CALL PLAYS

Sears Holding Corp. - SHLD - close: 56.36 change: +1.52

Stop Loss: 53.95
Target(s): 62.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SHLD is the holding company for both Sears and K-Mart. The stock has been correcting lower these last two weeks. Yet shares are just now starting to bounce from a trend of higher lows and near some key moving averages. SHLD could see some short covering. The most recent data listed short interest at 37% of the 31.3 million share float.

I am suggesting bullish positions at the open tomorrow. We'll use a stop loss at $53.95. Our target is $62.50.

NOTE: There are two October $57.50 option strikes. Make sure you pick the normal one. Pay attention to the symbol.

- Suggested Positions -

buy the Oct $57.50 call (SHLD1220j57.5) current ask $2.39

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.7 million
Listed on September 27, 2012