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) KSU, LMT, EVEP, CYT

(bearish ideas) RHT,


NEW DIRECTIONAL CALL PLAYS

Sempra Energy - SRE - close: 68.65 change: +0.99

Stop Loss: 66.95
Target(s): 72.00
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to the Nov. 6th earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
SRE is an energy services company, involved mostly with natural gas. After bottoming in late September shares have turned higher. SRE now has a bullish trend of higher lows and higher highs. Today saw SRE breakout to a new multi-week high.

We want to hop on board and buy calls tomorrow morning. We'll use a stop loss at $66.95. Our target is $72.00.

- Suggested Positions -

buy the DEC $70 call (SRE1222L70) current ask $0.70

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 939 thousand
Listed on October 25, 2012


NEW DIRECTIONAL PUT PLAYS

Schlumberger Ltd. - SLB - close: 70.74 change: +0.65

Stop Loss: 71.05
Target(s): 65.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SLB doesn't look to hot. Shares of this oil services stock have been declining since the company reported earnings on the 19th of October. Now SLB is in danger of breaking key support near $70.00. You could also argue that SLB has created a bearish head-and-shoulders pattern over the last three months.

Yesterday's low was $69.75. I am suggesting a trigger to open bearish positions at $69.65. Our target is $65.25. FYI: The Point & Figure chart for SLB is bearish with a $64 target.

Trigger @ 69.65

- Suggested Positions -

buy the NOV $70 PUT (SLB1217w70) current ask $1.48

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 5.3 million
Listed on October 25, 2012