Editor's Note:

Additional Trading Ideas:

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

(bullish ideas) DPS, ALL, URBN

(bearish ideas) NUS, CNX, NFG


Changyou.com Ltd. - CYOU - close: 29.81 change: +1.32

Stop Loss: 27.75
Target(s): 34.75
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 09, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 166 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CYOU is a Chinese online gaming company. The stock has spent more than a year chopping sideways under resistance at the $30.00 level. The current rally has pushed the stock back up to this level and odds look good that CYOU could breakout.

I do consider this an aggressive, higher-risk trade. CYOU can be a volatile stock. Thus we want to limit our position size to reduce our exposure. I am suggesting a trigger to open bullish positions at $30.25. If triggered we'll start with a stop loss at $27.75. Our target is $34.75.

Trigger @ 30.25 *Small Positions*

Suggested Position: buy CYOU stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Feb $30 call (CYOU1316B30) current ask $1.70

Annotated chart: