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) GTLS, IWM, WPI, AYI, FMX, SNI, ADS, UA,

(bearish ideas) SBUX, HP, DE


NEW DIRECTIONAL PUT PLAYS

Mosaic Company - MOS - close: 56.75 change: -1.16

Stop Loss: 58.55
Target(s): 50.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
America is currently experiencing its worst drought in more than 50 years. Yet it looks like the farmer's demand for fertilizer has already been priced into shares of MOS. The stock failed at resistance near $60.00 and now it's reversing lower.

I am suggesting a trigger to buy puts at $56.30. Our target is $50.50.

NOTE: With less than three weeks left on the September puts, I see them as the higher-risk but higher-reward trade. I prefer the Octobers.

Trigger @ 56.30

- Suggested Positions -

buy the Sep $55 PUT (MOS1222u55) current ask $0.72

- or -

buy the Oct $55 PUT (MOS1220v55) current ask $1.78

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 2.9 million
Listed on September 04, 2012