Editor's Note:

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

(bullish ideas) PRA, ECL, BRK.B, VNO, BUD, DDS, THI, IDXX, ULTI

(bearish ideas) FOSL, SXCI, ARLP, PLCE, INFY


NEW DIRECTIONAL PUT PLAYS

Baidu, Inc. - BIDU - close: 127.97 change: -2.05

Stop Loss: 133.05
Target(s): 115.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BIDU is essentially the Google of China. This Chinese Internet stock has been hovering between support near $130 and resistance near $135 and its 200-dma after a sharp mid-April plunge. Now the stock is breaking down again.

There is potential support at $120 but I'm suggesting we aim for $115.00. We'll use a stop loss at $133.05, just above the simple 10-dma. FYI: The Point & Figure chart for BIDU is bearish with a $106 target.

- Suggested Positions -

buy the May $125 put (BIDU1219Q125) current ask $1.77

- or -

buy the Jun $120 put (BIDU1216R120) current ask $2.96

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on May 07, 2012