Mother Market frequently rewards the patient while punishing the impatient. Impatient traders chase stocks that are otherwise extended from key support levels. Though they’ve missed the ideal entry point some traders still can’t resist the urge to jump in and participate. Unfortunately these overstretched stocks offer poor risk-reward setups. Sometimes traders are rewarded for their boldness in jumping into extended names but typically this behavior results in losses. Wait for some type of price or time correction to establish a more favorable entry point. With the recent weakness in the equities market options trading investors are in the process of experiencing just such a correction. As a result many stocks are finally coming into alluring buy points.

From momentum names like Whole Foods (NASDAQ: WFMI), Lululemon Athletica (NASDAQ: LULU), Caterpillar (NYSE: CAT), and Rockwell Automation (NYSE: ROK) to refiners like Tesoro Corp. (NYSE: TSO), Western Refining (NYSE: WNR) (shown below), and Holly Corp. (NYSE: HOC), there are a multitude of stocks in my watch list approaching potential support levels. While some are testing their rising 20-day moving averages others are coming into prior resistance levels which may act as support. In the coming days option traders should watch closely to see how these stocks react around these areas.

The $64,000 question is whether or not the market correction has fully played out and the next up-leg is at-hand. No sense buying a dip if it’s about to keep on dipping if you know what I mean. Provided the market does reach a bottom and starts the next up move, consider these aforementioned stocks for bullish plays like long call options or bull call spreads.

Western Refining (NYSE: WNR)

(Source:  MachTrader)

At the time of this writing Tyler Craig had no position in the stocks mentioned.

Follow Tyler Craig on Twitter@TylersTrading.