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)
C, IR, WCC, LBTYA, BDX, ITW, DHR, QCOM, AXP, PNR, GS, UHS, MPC,

(bearish ideas)
FB, IBM, VTR,



NEW DIRECTIONAL PUT PLAYS

Twitter, Inc. - TWTR - close: 39.06 change: -1.94

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TWTR was the IPO of the year. Like most overhyped IPOs the stock shot higher but struggled to build on its opening day gains. Everyone seems to love the company and the general consensus seems to be a desire to buy the stock but not in the $40 area. I've heard a lot of analysts say wait and we'll get a chance to buy it in the mid to low $30s.

It looks like the IPO hype is finally wearing off as TWTR underperformed the market today and broke down to a new low. I am suggesting small bearish positions now at the opening bell tomorrow morning. I'm not listing a stop loss because TWTR can be pretty volatile. Therefore you'll need to manage your risk by adjusting your position size (if you want to use a stop I'd probably place one just above $41.00). We'll use the December options with just less than four weeks. You may want to buy Januarys instead. Our short-term target is $35.25.

*Small Positions* at the opening bell

- Suggested Positions -

Buy the Dec $35 PUT (TWTR1322x35) current ask $0.60

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 19.7 million
Listed on November 25, 2013