Editor's Note:

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

(bullish ideas) FDO, SPW, MHK, PRA, NEE, ABT, PNC, TRV, FMC, HIBB, ICUI, ROST


NEW DIRECTIONAL PUT PLAYS

Informatica - INFA - close: 45.39 change: -1.40

Stop Loss: 46.25
Target(s): 40.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
INFA is a business technology company. Shares have been sinking the last few weeks under a bearish trend of lower highs. Now, after two weeks of consolidating near support at $45.00, the stock looks poised to breakdown.

I am suggesting a trigger to buy puts at $44.50. Our target is $40.25. We'll use a stop loss at 46.25. FYI: The Point & Figure chart for INFA is bearish with a $39 target.

Trigger @ 44.50

- Suggested Positions -

buy the Jun $45 PUT (INFA1216R45) current ask $2.00

Annotated Chart:

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on May 10, 2012