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)
FLT, CLR, CRR, NUS, UPS, TUP, VIAB, LII, RS, HOG, LTD, IACI, VRX, MCK, RRGB, DKS, BIIB,



NEW DIRECTIONAL CALL PLAYS

iShares Russell 2000 ETF - IWM - close: 106.58 change: -0.48

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

Company Description

Why We Like It:
The small cap Russell 2000 index has been outperforming its large-cap rivals. The $RUT hit new all-time highs about two weeks ago. Since then it has resisted the market's recent pullback and replaced it with a sideways consolidation at its highs. We think the larger trend higher continues.

Tonight we are listing two different entry points (and stop loss strategies). We have a breakout entry trigger at $107.75 with s suggested stop loss at $105.40. We have a buy-the-dip trigger at $105.25 and s suggested stop loss at $103.40.

I'm suggesting the 2014 January $110 calls but you may want to use another month or strike that better suits your trading style.

Breakout Trigger @ 107.75, stop loss @ 105.40
- or -
Buy-the-dip Trigger @ 105.25, stop loss @ 103.40

- Suggested Positions -

Buy the 2014 Jan $110 call (IWM1418a110) current ask $2.46

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 34.6 million
Listed on September 28, 2013


Ross Stores Inc. - ROST - close: 72.55 change: +0.19

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ROST operates an off-price apparel chain of retail stores. It seems that Wall Street is favoring the discount retailers over worries about a slow-growth economy and a fragile U.S. consumer. Goldman Sachs said as much when they added ROST to their conviction buy list a few days ago.

Shares of ROST have continued to perform well. Bullish momentum has produced gains four weeks in a row and ROST broke out past its old highs near $70 this month. Right now ROST is hovering just below short-term resistance near the $72.80 area. I am suggesting a trigger to buy calls at $73.05. If triggered our multi-week target is $77.50. FYI: The Point & Figure chart for ROST is bullish with an $89 target.

NOTE: I'm listing our trade with an initial stop loss at $69.95 but more conservative traders may want to use a stop closer to $71.00 instead.

Trigger @ 73.05

- Suggested Positions -

buy the Nov $75 call (ROST1316K75) current ask $1.00

- or -

buy the 2014 Jan $75 call (ROST1418a75) current ask $2.40

Annotated Chart:

Weekly Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.28 million
Listed on September 28, 2013