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) MTB, HUM, AET, PNC, WDC,

(bearish ideas) VMW,



NEW DIRECTIONAL CALL PLAYS

Shutterfly, Inc. - SFLY - close: 54.98 change: +1.50

Stop Loss: 52.40
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SFLY is an online company that helps consumers make personalized photo products (think photo album books). It looks like investors have lost their concerns about growing competition in this industry. Wall Street doesn't seem to care that SFLY lowered their guidance when they announced earnings back on May 1st. Instead shares of SFLY have bucked the market's recent trend and have continued to climb.

Today saw SFLY outperform the market with a +2.8% gain and close at new 52-week highs. The $55.00 level is significant resistance and a breakout here could spark a short squeeze. The most recent data listed short interest at 19% of the small 34 million share float.

I am suggesting a trigger to buy calls at $55.25. If triggered our target is $59.75. FYI: The Point & Figure chart for SFLY is bullish with an $84 target.

Trigger @ 55.25

- Suggested Positions -

buy the Jul $55 call (SFLY1320G55) current ask $2.10

- or -

buy the Aug $60 call (SFLY1317H60) current ask $1.85

Annotated Chart:

Entry on June -- at $---.--
Average Daily Volume = 628 thousand
Listed on June 25, 2013


SPDR S&P Oil & Gas Exploration - XOP - close: 58.32 change: +1.09

Stop Loss: 55.90
Target(s): 62.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Crude oil prices have been very volatile as they react to big moves in the U.S. dollar. Meanwhile the energy sector has been taking its cue from the S&P 500 lately. Shares of the XOP just bounced off their multi-month trend line of higher lows (see weekly chart below).

I am suggesting we launch small bullish positions if the XOP can trade at $58.60. If triggered our target is $62.50.

Trigger @ 58.60 *small positions*

- Suggested Positions -

buy the Sep $60 call (XOP1321i60) current ask $2.20

Annotated Chart:

Weekly Chart:

Entry on June -- at $---.--
Average Daily Volume = 4.2 million
Listed on June 25, 2013