NEW BULLISH Plays

Apollo Group Inc. - APOL - close: 46.99 change: +1.14

Stop Loss: 42.95
Target(s): 53.00
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this educational services provider were not immune to the market's sell-off over the last few weeks. However, where the market broke down to new relative lows, APOL did not. It looks like APOL has formed a bottom and the bounce is gaining steam. Today saw APOL outperform the market with a +2.4% gain and a close over its 50-dma.

I am suggesting we hop on board here. We'll open bullish positions tomorrow but only if APOL and the S&P500 both open positive tomorrow morning. If you prefer to buy on the dip then wait for a dip into the $46.00-45.00 zone as your entry point instead. I am setting our target at $53.00.

I am listing a stop loss at $42.95. More conservative traders may want a stop closer to $44.00 or even $45.00 instead.

open bullish positions if APOL and S&P500 both open positive tomorrow.

Suggested Position: buy APOL stock @ open

- or -

buy the SEP $50 call (APOL1117I50) current ask $1.14

Annotated chart:

Entry on August xx at $ xx.xx
Earnings Date 10/12/11 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on August 16, 2011