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) MDVN, DVN

(bearish ideas) WYNN, SPW, NKE, CMI


NEW DIRECTIONAL PUT PLAYS

Alliant Techsystems - ATK - close: 45.71 change: -0.29

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Worries over the "fiscal cliff" and mandatory defense spending cuts could be pressuring shares of this defense contractor. The stock is in a long-term down trend of lower highs and lower lows. Currently ATK is sitting just above support near $45.00.

I am suggesting a trigger to buy puts at $44.75. If triggered our target is $40.50. FYI: The Point & Figure chart for ATK is bearish with a $35 target.

Trigger @ 44.75

- Suggested Positions -

Buy the Aug $45 PUT (ATK1218T45) current ask $1.40

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 261 thousand
Listed on July 21, 2012


SINA Corp. - SINA - close: 45.13 change: -1.45

Stop Loss: 47.60
Target(s): 40.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This Chinese stock continues to show weakness. The oversold bounce is already fading under short-term resistance at the simple 10-dma. We want to go ahead and buy puts at the open on Monday morning. We'll use a stop loss at $47.60. Our target is $40.50. FYI: The Point & Figure chart for SINA is bearish with a $36 target.

- Suggested Positions -

buy the Aug $42.50 PUT (SINA1218T42.5) current ask $2.13

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on July 21, 2012