Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas:

Bullish candidate ideas:
IBB, PSMT, SWK, ALXN, DLTR, and NKE

- James


NEW DIRECTIONAL PUT PLAYS

Autodesk, Inc. - ADSK - close: 30.40 change: +0.49

Stop Loss: 31.25
Target(s): 25.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADSK is an software company (architectural designs) and shares have been underperforming recently. The looks like it's on the verge of breaking down under support near $30.00. The late November low was $29.76. I am suggesting a trigger to buy puts at $29.65 with a stop loss at $31.25, which is just above this week's high.

Our exit target is $25.50. FYI: The Point & Figure chart for ADSK is bearish with a $23 target.

Trigger @ 29.65

- Suggested Positions -

buy the 2012Jan $30 PUT (ADSK1221M30) ask $1.13

- or -

buy the Feb $28 PUT (ADSK1218N28) ask $1.07

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on December 29, 2011