Editor's Note:

In addition to tonight's new candidate(s), 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) HON, FMX, JAH, MHK, ROP, ADS, VMC, COL, CNI, SI, MCK, TSCO


NEW DIRECTIONAL PUT PLAYS

Plains Exploration & Production - PXP - close: 36.17 change: -0.82

Stop Loss: 37.25
Target(s): 31.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Nov. 1st.
New Positions: Yes, see below

Company Description

Why We Like It:
PXP is an oil and gas company. The stock has been trending lower since it topped out back in August. Shares are now flirting with a breakdown under support near $36.00.

I am suggesting we launch small bearish positions if PXP hits $35.75 or lower again. If triggered our target is $31.50. FYI: The Point & Figure chart for PXP is bearish with a $31 target.

Trigger @ 35.75 *Small Positions*

- Suggested Positions -

buy the Nov $35 PUT (PXP1211w35) current ask $1.56

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 4.3 million
Listed on October 6, 2012


Starbucks Corp. - SBUX - close: 48.74 change: -0.36

Stop Loss: 50.05
Target(s): 44.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the early November earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
SBUX is the gourmet coffee company with the ubiquitous store fronts. After plunging back in July the stock fought its way higher and managed to fill the gap before finally failing and reversing near prior support and new resistance in the $51-52 area. Now shares are trendline lower and look poised to breakdown and really accelerate.

The stock has been tracking the 50-dma the last few days. I am suggesting we use a trigger at $48.40 to launch bearish positions. If triggered our target is $44.00. More aggressive traders could aim lower since SBUX appears to be in a new trend of lower highs and lower lows.

Trigger @ 48.40

- Suggested Positions -

buy the Nov $50 PUT (SBUX1211w50) current ask $2.58

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 8.1 million
Listed on October 6, 2012