Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) ALGT, BEAM,

(bearish ideas) TD, CRR, LH, DE, EL, WCC, DO, OXY, MELI, SHLD


NEW DIRECTIONAL PUT PLAYS

McDonald's Corp. - MCD - close: 89.34 change: -0.77

Stop Loss: 91.55
Target(s): 85.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of MCD continue to slip lower in spite of a 3% dividend yield and positive global sales growth. The stock broke down under key support near $90 and its 300-dma (again) today and actually closed at new relative lows.

I am suggesting we buy puts on MCD tomorrow at the open. We'll use a sotp loss at $91.55. Our target is $85.25.

- Suggested Positions -

buy the Jun $90 PUT (MCD1216R90) current ask $1.59

- or -

buy the Jul $87.50 PUT (MCD1221S87.5) current ask $1.58

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 6.1 million
Listed on May 31, 2012