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Strayer Educ. - STRA - close: 105.88 chg: +4.07 stop: 101.99

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 39 campuses in 10 states in the eastern United States and worldwide via the Internet through Strayer University Online. (source: company press release or website)

Why We Like It:
This is an aggressive short-term breakout play. STRA is due to report earnings on the morning of May 4th. That gives us five trading days to ride today's bullish breakout over significant resistance at the $105 level. Today's move was fueled by above average volume and STRA's P&F chart has produced a quintuple-top breakout buy signal that now points to a $123 target. Our target will be the $112.50-115.00 range although more conservative traders may want to exit near $110. We'll put a stop loss under today's low. We plan to exit on Wednesday, May 3rd near the closing bell.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 100.00 SDQ-ET open interest=117 current ask $8.30
BUY CALL MAY 105.00 SDQ-EA open interest= 30 current ask $5.00
BUY CALL MAY 110.00 SDQ-EB open interest= 75 current ask $2.60

Picked on April 26 at $105.88
Change since picked: + 0.00
Earnings Date 05/04/06 (confirmed)
Average Daily Volume = 171 thousand
 

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