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)
BA, NOC, BDX, CB, SBAC, IFF, APH, LII, KORS, PSX, LH, AMP



NEW DIRECTIONAL CALL PLAYS

Cardinal Health, Inc. - CAH - close: 62.30 change: +1.48

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CAH is in the services sector. The company is a healthcare services firm that operates a pharmaceutical business and a medical products business. The stock had been a relatively steady performing after bottoming in March 2013. The rally accelerated recently after CAH's earnings report on October 31st. The company beat Wall Street's estimates on both the top and bottom line. Plus, management raised their 2014 guidance. The post-earnings rally pushed CAH above round-number resistance at $60.00. Most of last week was spent consolidating gains but Friday's move pushed shares to a new record high.

I am suggesting a trigger to buy calls at $62.50. If triggered our target is $67.50.

Trigger @ 62.50

- Suggested Positions -

Buy the 2014 Jan $65 call (CAH1418a65) current ask $0.80

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 3.8 million
Listed on November 09, 2013


3D Systems - DDD - close: 70.40 change: +2.54

Stop Loss: 68.75
Target(s): 78.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DDD is in the technology sector. The company is in the 3D printing industry. Many investors believe this is going to be a major growth area over the next few years. DDD makes printers, printing materials, and provides on-demand custom parts services. Of course not everyone agrees with the bullish story. Most bears will probably argue that DDD's valuations are way too high with a trailing 12-month P/E of 152 and a forward P/E of 54. Unfortunately for the bears the rally in DDD continues. Shares could see more short covering. The most recent data (which may be out of date) has listed short interest at 33% of the 95.6 million share float. Definitely room for more short covering.

The company's last earnings report on October 29th was mixed. The bottom line results were in-line with estimates. Revenues came in above expectations. Yet management lowered their 2013 guidance. The stock initially spiked lower but traders quickly jumped in to buy the dip. Since then DDD has surged to new all-time highs.

I would consider this a more aggressive, higher-risk trade. One of the most likely risks is an analyst downgrade that could generate some short-term volatility. I am suggesting we keep our position size small to limit our risk. Tonight I am suggesting a trigger to buy calls at $71.50. If triggered our target is $78.50. FYI: The Point & Figure chart for DDD is bullish with an $82 target.

Trigger @ 71.50 *small positions*

- Suggested Positions -

Buy the DEC $75 call (DDD1322L75) current ask $2.80

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 4.2 million
Listed on November 09, 2013


SPX Corp. - SPW - close: 93.92 change: +1.11

Stop Loss: 91.75
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SPW is in the industrial goods sector. According to their website SPW is a multi-industry manufacturing leader with operations in more than 35 countries. The stock's recent strength is a little bit surprising. Their latest earnings report wasn't that great. SPW beat the bottom line estimate by one cent but missed the revenue estimate. Management then issued cautious guidance for the rest of 2013. Yet the stock exploded higher on its earnings report.

The rally stalled under the $94.00 level. The stock has spent the last week consolidating gains in the $92-94 zone and SPW now looks poised to breakout. I am suggesting a trigger to buy calls at $94.25. If triggered our target is $99.00. FYI: The Point & Figure chart for SPW is bullish with a $113 target.

Trigger @ 94.25

- Suggested Positions -

Buy the DEC $95 call (SPW1322L95) current ask $2.20

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 304 thousand
Listed on November 09, 2013