Editor's Note:

While looking for new candidates today I found IDXX, which looks poised to breakout higher from its sideways consolidation. Readers may want to check it out. A trigger over $47.50 might work.


NEW DIRECTIONAL PUT PLAYS

ITT Educational - ESI - close: 90.50 change: -1.13 stop: 92.65

Why We Like It:
This education stock looks like it's about to breakdown. The stock has been testing support near $90.00 for weeks. There was a rally attempt in late June but it has failed. The Point & Figure chart is bearish and forecasts a $76.00 target. I am suggesting readers use a trigger to buy puts at $88.99. If triggered our first target is $81.00. We do not want to hold over the late July earnings report.

Suggested Options:
I am suggesting the August puts.

BUY PUT AUG 90.00 ENJ-TR open interest= 181 current ask $6.70
BUY PUT AUG 85.00 ENJ-TQ open interest= 302 current ask $4.60
BUY PUT AUG 80.00 ENJ-TP open interest=   0 current ask $2.95

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       902 thousand 
Listed on  July 08, 2009