NEW BEARISH Plays

Apollo Group Inc. - APOL - close: 18.55 change: -0.58

Stop Loss: 19.60
Target(s): 15.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 21, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
Education stock APOL looks weak and poised to breakdown from its four-month consolidation in the $18-22 zone. Shares have been trending lower for over a year. Now that its attempt at a bottom appears to be failing APOL could be poised for the next leg lower. Where it stops is a good question. APOL hasn't traded below the $18.00 level since the year 2000.

The recent lows have seen traders buying the dip near $18.50. I am suggesting a trigger to open bearish positions at $18.25. We do want to keep our position size small. There is already a large amount of shorts in the stock. Traders may want to consider buying put options to limit their risk but they'll also be more volatile.

If triggered at $18.25 our initial target is $15.50.

Trigger @ 18.25

Suggested Position: short APOL stock @ (trigger)

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

buy the Mar $18 PUT (APOL1316o18) current ask $0.49

Annotated chart: