LSB (Least Significant Bit) is a widely used method for image steganography, which hides the secret message as a bit stream in LSBs of pixel bytes in the cover image. This paper proposes a variant of LSB named SCOPES that encodes and compresses the secret message while being hidden through storing addresses instead of message bytes. Reducing the length of the stored message improves the storage capacity and makes the stego image visually less suspicious to the third party. The main idea behind the SCOPES approach is dividing the message into 3-character segments, seeking each segment in the cover image and storing the address of the position containing the segment instead of the segment itself. In this approach, every permutation of the 3 bytes (if found) can be stored along with some extra bits indicating the permutation. In some rare cases the segment may not be found in the image and this can cause the message to be expanded by some overhead bits2 instead of being compressed. But experimental results show that SCOPES performs overlay better than traditional LSB even in the worst cases.