Editor's Note:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:

(bullish ideas) WLP, TWC, HUM, CI

(bearish ideas) CERN, ALXN, PANW, TMO, ACT, NOC, JBHT, VMW, VIAB, STZ, CF



NEW DIRECTIONAL CALL PLAYS

CME Group Inc. - CME - close: 76.79 change: -0.30

Stop Loss: 73.85
Target(s): 84.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The CME started out as the Chicago Mercantile Exchange. The CME Group is the combined company of the CME and the Chicago Board of Trade (CBOT). Today CME operates the CME, CBOT, NYMEX, COMEX, and KCBT futures exchanges. The world's demand for options, futures and other derivatives continues to climb, which should mean business is good for the CME. The stock has definitely been performing well with gains in six out of the last seven weeks. This past week saw the CME hit 4 1/2 year highs.

Bears can argue that CME shares are overbought and due for a correction. Bulls can argue that the CME managed to shrug off the market's sell-off this past week and continues to show relative strength. Tonight we're going with the trend, which is up.

I am suggesting small bullish positions if CME can trade at $77.85. If triggered we'll use a stop loss at $73.85. More cautious traders may want to use a stop closer to $75.00, which looks like short-term support. I do expect some resistance at $80.00 but our target is $84.00.

Trigger @ 77.85 *small positions*

- Suggested Positions -

Buy the Jul $80 call (CME1320G80) current ask $1.05

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 3.0 million
Listed on June 22, 2013


SodaStream Intl. - SODA - close: 71.01 change: +0.73

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SODA sells in home beverage carbonation systems that allows consumers to make their own soft drinks. Investors seem happy to pay for growth in this momentum stock. The company's earnings are soaring at +20% while it's P/E has hit 31. Yet not everyone believes in the story, or at least the valuation. The most recent data listed short interest at 38% of the small 18.2 million-share float. As the stock keeps climbing SODA keeps seeing more short covering. I would be worried if I was short given the rumors surrounding SODA that it could be an acquisition target.

The stock did see a correction from its mid-June high but traders bought the dip on Thursday near its 30-dma. Thursday's move actually produced a bullish engulfing candlestick reversal pattern. Friday's +1% gain was a show of relative strength and confirmed the reversal pattern. However, SODA does have a short-term trend of lower highs. We'd like to see a breakout.

I am suggesting a trigger to buy calls at $72.50. Friday's high was $72.35. If we are triggered at $72.50 our target is $79.00. The stock struggled with resistance at $80.00 back in 2011 so the $80 level could still be trouble. SODA can be a volatile stock so traders may want to limit their position size to reduce risk.

Trigger @ 72.50

- Suggested Positions -

Buy the Jul $75 call (SODA1320G75) current ask $2.55

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 1.5 million
Listed on June 22, 2013