Editor's Note:

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

(bearish ideas) DIA, SPY, QQQ, TIF, WXS, JOSB


NEW DIRECTIONAL PUT PLAYS

iShares Russell 2000 index - IWM - close: 79.75 change: -0.46

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
We are going to trade the IWM again. The market's oversold bounce appears to be failing. Investors are selling the news when it comes to corporate earnings and economic data has not been inspiring any buyers.

Aggressive traders may want to buy puts now. I would rather wait for a decline under the simple 100-dma (currently 78.65). We're suggesting a trigger to buy puts at $78.45. Our target is $75.50.

Trigger @ 78.45

- Suggested Positions -

buy the Jun $77 PUT (IWM1216R77) current ask $2.20

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 53 million
Listed on April 19, 2012