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 may need to see a break past key support or resistance:

(bullish ideas) WHR, UTX, HSIC, DNB, DISCA, TROW, SBAC, LBTYA, IFF, TGT, WYN, BMRN, R, VRTX, SJM



NEW DIRECTIONAL CALL PLAYS

Gilead Sciences - GILD - close: 51.93 change: +0.28

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: Yes, see below

Company Description

Why We Like It:
GILD was one of the best performing NASDAQ-100 components in the first quarter. Shares are outperforming both the NASDAQ and its peers in the biotech sector. This past week saw a rally to new all-time highs. Investors are counting on GILD's strong drug pipeline and the company could see two or three of its current drugs in development receive FDA approval soon. Thus the upward momentum is likely to continue.

We're suggesting bullish positions at the open on Monday. However, I do consider this a more aggressive entry point. More conservative traders may want to wait for a pullback near the $50.50-50.00 zone as an alternative entry point. Our target is $56.50 but we'll plan on exiting prior to the May 2nd earnings report.

- Suggested Positions -

buy the May $52.50 call (GILD1318e52.5) current ask $1.86

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 11.7 million
Listed on April 13 2013


Ulta Salon - ULTA - close: 87.69 change: -0.45

Stop Loss: 84.95
Target(s): 92.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ULTA is a specialty retailer of cosmetics and related accessories. The stock was crushed back on March 15th following its earnings report. ULTA beat estimates by two cents but management issued an earnings warning. That warning sparked a serious gap down toward the $74 area. A few days later ULTA announced a stock buyback program to mitigate the pain in its stock price.

Since the post-earnings crash the rebound in ULTA has been very orderly. It almost seems like institutional investors have been using the stock's weakness as an opportunity to buy more shares. ULTA has been marching higher, ignorant of the market's ups and downs. We want to buy calls on ULTA's relative strength over the last few weeks. However, I do consider this an aggressive, higher-risk trade so we do want to limit our position size to reduce our risk. There is a chance that the $90.00 level, the early March high at $92.12, or any of the myriad of moving averages directly overhead could become resistance for the stock.

I am setting our exit target at $92.00 but more aggressive traders could aim higher.

*Small Positions* - Suggested Positions -

buy the May $90 call (ULTA1318e90) current ask $2.15

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 1.78 million
Listed on April 13 2013