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Strayer Education - STRA - cls: 86.17 chg: -0.82 stop: 87.75

Company Description:
Strayer Education, Inc. is an education services holding company that owns Strayer University and certain other assets. Strayer's mission is to make higher education achievable and convenient for working adults in today's economy. Strayer University is a proprietary institution of higher learning that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, and public administration to more than 23,000 working adult students at 34 campuses in 8 states and Washington, D.C. in the eastern United States and worldwide via the Internet through Strayer University Online. Strayer University is committed to providing an education that prepares working adult students for advancement in their careers and professional lives. Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education. (source: company press release)

Why We Like It:
Shares of STRA were hammered in early May after the company issued an earnings warning for the second quarter. The oversold bounce stalled at the $90.00 level, which is now overhead resistance. With momentum oscillators turning bearish we see new short-term overhead resistance near $87.50 where the stock has been unable to pierce for the last five sessions. The P&F chart for STRA looks very bearish with a long-term $40.00 target. We're going to suggest traders target a short-term drop toward the $80.00 level. We'll officially target a drop into the $81.00-80.00 range. We're setting our stop loss at $87.75 just above the new resistance.

Suggested Options:
We're going to suggest the July puts.

BUY PUT JUL 90.00 SDQ-SR OI= 26 current ask $6.60
BUY PUT JUL 85.00 SDQ-SQ OI= 86 current ask $3.70
BUY PUT JUL 80.00 SDQ-SP OI= 57 current ask $1.95

Picked on May 25 at $ 86.17
Change since picked: - 0.00
Earnings Date 01/26/05 (unconfirmed)
Average Daily Volume = 258 thousand

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