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:

(bearish ideas)
AVGO, GMCR, SPLK, ILMN, ROP, URI, KSU, LNKD, FURX, SBUX,



NEW DIRECTIONAL PUT PLAYS

Advance Auto Parts - AAP - close: 118.61 change: -2.97

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 15th
New Positions: Yes, see below

Company Description

Why We Like It:
AAP is in the services sector. The company is considered a specialty retailer of automobile aftermarket parts, accessories, batteries, and maintenance items. They have over 4,000 locations.

The company reported earnings back in February and beat the bottom line estimate and raised their guidance. This produced a pretty good one-day pop on AAP shares. Unfortunately there wasn't much follow through higher. The rally in AAP ran out of gas under the $130 level. Shares have been meandering sideways for weeks until the recent breakdown below technical support at the 50-dma.

Today's move has produced a new failed rally bearish reversal pattern at the 50-dma. More aggressive traders may want to buy puts immediately. I am suggesting a trigger to buy puts at $117.25, which is below Tuesday's low of $117.39. If triggered our target is $110.50.

Trigger @ 117.25

- Suggested Positions -

Buy the May $115 PUT (AAP1417Q115) current ask $3.40

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 752 thousand
Listed on April 10, 2014


Lockheed Martin Corp. - LMT - close: 155.43 change: -3.40

Stop Loss: 158.25
Target(s): 146.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on April 22nd
New Positions: Yes, see below

Company Description

Why We Like It:
LMT is in the industrial goods sector. The company is a major player in the aerospace and defense industries. The defense stocks delivered impressive gains last year. It looks like momentum has stalled in 2014. LMT produced a bearish double top in February and early March. The recent failure near $165 was a lower high. Now the oversold bounce has reversed under resistance at the 50-dma.

This week's low was $154.75 on Tuesday. I am suggesting a trigger to buy puts at $154.50. If triggered our target is $146.00. However, this is a short-term trade. LMT is scheduled to report earnings on April 22nd and we do not want to hold over the announcement.

Trigger @ 154.50

- Suggested Positions -

Buy the May $150 PUT (LMT1417Q15) current ask $2.20

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 1.7 million
Listed on April 10, 2014