Editor's Note:

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

(bullish ideas)
BCR, FLT, ENR, LII, PRLB, ALXN, DDD, YELP, KORS, GME, TSCO, TRIP



NEW DIRECTIONAL PUT PLAYS

Diamond Offshore Drilling - DO - close: 64.17 change: -1.10

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DO is an offshore oil and gas drilling contractor. They're actually a subsidiary of Loews Corp. (symbol: L). Shares of DO have not been tracking with the rise in oil prices. Instead DO has been underperforming oil and the energy sector. Thus, if oil does spike on a potential U.S. strike on Syria, it seems less likely that DO would react.

Currently shares have fallen toward significant support near $64.00. A breakdown here could spark the next leg lower. I am suggesting a trigger to buy puts at $63.75. If triggered our target is the $57.50 level. I would not be surprised to see a temporary bounce near the $60.00 mark.

Trigger @ 63.75

- Suggested Positions -

Buy the Oct $60 PUT (DO1319v60) current ask $0.77

Annotated Chart:

Weekly Chart:

Entry on August -- at $---.--
Average Daily Volume = 1.0 million
Listed on August 28, 2013