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) SHW, FDX, PRA, SNI, EW, SLXP, TFM, and LLL (note: LLL has a spin-off scheduled for July 17th)


NEW DIRECTIONAL PUT PLAYS

J.C.Penney Co. - JCP - close: 21.88 change: 0.84

Stop Loss: 22.51
Target(s): 19.50, 15.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Investors are nervous about JCP. Analysts are commenting on the sharp drop in JCP's sales volume. The turnaround in JCP's business strategy doesn't seem to be working yet.

We are suggesting a trigger to launch bearish positions at $21.30. Our first target is the 2010 lows near $19.50. Our second much more aggressive target is $15.50.

FYI: The Point & Figure chart for JCP is bearish with a $7.00 target.

Trigger @ 21.30

- Suggested Positions -

buy the Jul $20 PUT (JCP1221S20) current ask $0.33

- or -

buy the Aug $20 PUT (JCP1218T20) current ask $1.01

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 9.3 million
Listed on July 03, 2012