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) TWC, ECL, AMP, HAE, WLK, ATW, HD, ITW

(bearish ideas) JEC, SHPG, MPC, THS


NEW DIRECTIONAL CALL PLAYS

L-3 Communications - LLL - close: 75.85 change: +1.00

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of LLL have been consolidating under resistance at the $75.00 level for months. The stock has been building on a bullish trend of higher lows and higher highs the last few weeks. Finally the better than expected earnings report this week helped push LLL past resistance. LLL closed Friday at a new 2012 high.

I am suggesting we buy calls on a dip at $75.25. The risk of using this entry trigger is that LLL might continue to rally without an immediate pullback. Our target is $79.75.

Trigger @ 75.25

- Suggested Positions -

buy the Dec $75 call (LLL1222L75) current ask $2.25

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 423 thousand
Listed on November 3, 2012


NEW DIRECTIONAL PUT PLAYS

Oil States Intl. - OIS - close: 69.74 change: -2.00

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Oil and oil service stocks have been underperforming recently. OIS was definitely showing weakness on Friday with a -2.7% decline. The bounce attempt on Friday morning reversed and shares broke support at the $70.00 level. The next levels of likely support are $65.00 and $60.00.

I am suggesting small bearish positions on Monday morning with a stop loss at $72.25. Our short-term target is $65.25. More aggressive traders could aim lower.

- Suggested *Small* Positions -

buy the DEC $65 PUT (OIS1222x65) current ask $1.45

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 589 thousand
Listed on November 3, 2012