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New Calls

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New Puts

Strayer Educ - STRA - close: 89.51 chg: -1.24 stop: 92.51

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 27,000 working adult students at 37 campuses in 9 states 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 or website)

Why We Like It:
Earnings may have beat estimates last week but STRA's guidance was not very enthusiastic. The company guided lower and shares have failed to participate with the market's rally since. The action in the stock today looks like a failed rally under resistance at its simple 100-dma near $92.25 and the drop under $90 suggests more weakness ahead. We're going to suggest bearish put positions with the stock under $90.00 and target a drop to the $85.00 region (85.50-85.00).

Suggested Options:
We are suggesting the December puts.

BUY PUT DEC 95.00 SDQ-XS open interest= 10 current ask $7.30
BUY PUT DEC 90.00 SDQ-XR open interest= 5 current ask $4.30
BUY PUT DEC 85.00 SDQ-XQ open interest= 20 current ask $2.25

Picked on October 31 at $ 89.51
Change since picked: + 0.00
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 158 thousand
 

New Strangles

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