Updated from 7:05 a.m. EDT

This week's

Top 10 Rocket Stocks of the Week

features various momentum stocks that could have easy triggers in this slow, holiday-shortened trading week.

The key to choosing rocket stocks -- ones that are ideal for a stock-picking contest like the

TheStreet.com's

Beat the Street 2.0

-- is to find those that have not just solid fundamentals but also historical volatility and easy triggers as well.

The rocket stocks on

this week's list

fit each of these criteria.

First up is

Dendreon

(DNDN)

, a biotech company that recently has seen a

huge

amount of call buying in its July $7.50 and the July $10 options. On Wednesday more than 120,000 contracts were traded and more than 100,000 of them where call-buys for both in-the-money and out-of-the-money July calls.

You don't buy that amount of calls on a $7.40 stock because you think it's a good investment; the investors that make that kind of bet do so because they believe something is going to happen, and happen soon.

Dendreon is a violent stock that has been known to move as much as 40%-50% in one trading day. For more stocks that have unusual option activity, check out and bookmark

Stocks With Unusual Options Activity

, a portfolio we update daily. Other stocks on this list recently include

JDSU

(JDSU)

and

General Motors

(GM) - Get Report

.

Weekly catalyst:

Large call options buying for this month coupled with a huge short position could move this stock as investors are betting on a positive piece of news to come out any day. Short position of 50% would exacerbate any move to the upside.

To watch Alix Steel's video take of this column, click here

.

Next up is

Trump Entertainment

( TRMP), which hit a 52-week low last week as reported buyout talks faultered. The casino company's biggest issue is a gap between the purchase price it's looking for and the price it's likely to actually fetch, according to

The Philadelphia Inquirer

.

Trump is in talks with a group led by Dennis Gomes and Morris Bailey that has offered more than $11 a share. However, large shareholder Morgan Stanley is seeking more than $17 a share and rumor has it that Trump wants at least $22 a share. After Trump's stock slid 15% in a single day, Bear Stearns upgraded the stock to peer perform, citing valuation.

Update:

Just before the market open on Monday, Trump announced that it could not reach a deal with its suitors and that the deal is off as it continues to review its strategic options. The news sent the stock plummeting at the open. However, Monday's 20% down open could be a perfect precursor to the snapback for this week.

Weekly catalyst:

While the odds of a deal happening this week are almost zero, investors likely will come back into this stock as any leak could move this stock. Remember, there is also a value to Trump in both his name and assets. Stock is at $12.58 yet the book value is at $13; that won't last long.

Finally, let's face it:

Apple

(AAPL) - Get Report

has climbed 45% this year and

AT&T

(T) - Get Report

is only up 14%. Both Apple and AT&T are beneficiaries of the iPhone's success, but AT&T's stock is treated like the bastard stepchild of the iPhone!

AT&T is a great stock, not just for this week but in general. It offers a 3.6% dividend and the telecom has the sole licensing contract for the iPhone. AT&T is a great beneficiary of the iPhone's release as well as the mass media attention surrounding it. Some figurers shows that AT&T will bag an additional 2 million to 5 million subscribers off of the iPhone alone; if these figurers are true, that could add $3-$4 to AT&T's stock.

Weekly catalyst:

AT&T is the safest way to play the iPhone without going long Apple.

For the rest of this week's Rocket Stock picks plus analysis and catalysts for each -- including

Rentech

(RTK)

and

Crocs

(CROX) - Get Report

-- please check out Stockpickr's

Rocket Stocks of the Week

portfolio.

And to find the snapbacks and potential breakouts on a regular basis, be sure to check out these Stockpickr portfolios:

  • Today's Hot List: This daily list is a must-view at midday each day to see what stocks are making the biggest moves and why.
  • Always check the Biggest % Losers, a list of stocks that lost big the day before, because they can snap back hard. When you check this list on Stockpickr, you can see which stocks are owned by the quality hedge funds and mutual funds. Pay attention to those. They will be buying at the lower prices, so you should be also.
  • Biotech Short Squeezes.
  • Top Insider Purchases and Buybacks.
  • 52-Week Lows List: As with the above two lists, you must check this portfolio every day if you hope to find volatile stocks.
  • Stocks Rising on Unusual Volume: These are stocks with the potential to break out.
  • System Trades of the Day: These are trades triggering that day in various backtested trading systems we've developed at Stockpickr.
  • Stocks With Unusual Options Activity: Unusual activity in these stocks the day before suggests that someone perhaps knows something.
  • Latest Activist Situations: These are beaten-down stocks that hedge funds are accumulating shares of and demanding change for. Believe me, these hedge funds piggyback each other. And once they start rocking the boat, things happen quickly. This should be on the must-view list.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for

The Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email.

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