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) RAX

(bearish ideas) WMT, MJN, DVN



NEW DIRECTIONAL CALL PLAYS

iShares Silver ETF - SLV - close: 29.10 change: -0.14

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
If you asked a hundred traders, investors, or analysts on gold and silver you'd probably get a hundred different opinions. The precious metals were hammered a couple of weeks ago on the combination of a better than expected U.S. GDP number and what many believe has been end of year and end of quarter tax selling and profit taking. You'll notice that the selling in the SLV silver ETF stalled following the Dec. 20th drop. Since then the SLV has been consolidating sideways in what looks like a new short-term bottom.

We are expecting SLV to rebound in January and we're suggesting traders buy calls now with a stop loss at $27.45. Our multi-week target is $33.50. More conservative traders could wait for a rally back above what is short-term resistance at $30.00 as an alternative entry point to buy calls on the SLV. We are starting this trade with a stop at $27.45. You may want to use a tighter stop.

- Suggested Positions -

buy the March $30 call (SLV1316c30) current ask $0.97

Annotated Chart:

Weekly Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 11.6 million
Listed on December 29, 2012


NEW DIRECTIONAL PUT PLAYS

Range Resources - RRC - close: 62.02 change: -0.95

Stop Loss: 64.25
Target(s): 55.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The energy sector underperformed this past week and appears to have reversed. Meanwhile RRC was already in a bearish trend of lower highs and lower lows. The stock just produced a failed rally near resistance on Wednesday.

More aggressive traders may want to buy puts right now. I am suggesting a trigger to open positions at $61.65. If triggered our target is $55.50. Readers may want to keep their position size small. There has been rumors this past year that RRC might be a takeover candidate.

Trigger @ 61.65 *Small Positions*

- Suggested Positions -

buy the Feb $60 PUT (RRC1316n60) current ask $2.25

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 1.5 million
Listed on December 29, 2012