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) PX, SYK, EOG, APC, LLL, ARG, WBC, TRMB, VAR, SBUX, GWR, ACE, HP, ANSS



NEW DIRECTIONAL CALL PLAYS

Affiliated Managers Group - AMG - close: 132.30 change: +1.27

Stop Loss: 129.75
Target(s): 139.00
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AMG is in the asset management business. The news has been relatively quiet for the company. The stock managed a bullish breakout past significant resistance near $130 this week. I am suggesting small bullish positions at the open tomorrow. The bid/ask spread on AMG's options is a little bit wide so we want to limit our exposure and keep our position size small.

Buy calls tomorrow morning and we'll use a stop loss at $129.75. Our target is $139.00. FYI: The Point & Figure chart for AMG is bullish with a $147 target.

- Suggested *SMALL* Positions -

buy the March $135 call (AMG1316c135) current ask $4.40

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 271 thousand
Listed on December 20, 2012


Canadian Pacific Railway - CP - close: 102.63 change: +1.83

Stop Loss: 99.40
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Did you happen to notice that the transportation sector has broken out past resistance? It looks like the railroad stocks are helping lead the way. Shares of CP have rallied to new all-time highs. After a two-week consolidation sideways the stock should be rested and ready to run.

I am suggesting small bullish positions at the open tomorrow with a stop loss beneath today's low. Our target is $109.00.

NOTE: CP will begin trading ex-dividend on Dec. 26, 2012. The quarterly cash dividend should be about 35.5 cents.

- Suggested *SMALL* Positions -

buy the Jan $105 call (CP1319a105) current ask $1.40

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 961 thousand
Listed on December 20, 2012