Option Investor

Daily Newsletter, Thursday, 03/03/2005

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Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap


None Today.

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New Plays

New Option Plays

Call Options Plays
Put Options Plays
None None

Play Updates

In Play Updates and Reviews

Call Updates

Parker-Hannifin - PH - close: 68.92 change: +1.61 stop: 63.99

Shares of PH added 2.39 percent on above average volume to breakout above resistance at the $68.00 mark and its simple 50-dma. The move was sparked by a mostly positive press release detailing PH's February orders. Our entry point to buy calls was at $68.11 so the play is officially open. Our short-term target is the $73-75 region.


Picked on March 03 at $ 68.11
Change since picked: + 0.81
Earnings Date 01/18/05 (confirmed)
Average Daily Volume = 1.0 million

Put Updates

None today.

Dropped Calls

Fording Candn Coal - FDG - cls: 100.25 chg: +4.20 stop: 89.99

Wow! FDG is on fire. The stock added another 4.3 percent on top of yesterday's 4.7 percent with volume coming in well above average. The breakout over round-number, psychological resistance at the $100 mark is very bullish but FDG is looking more than a little overbought here. Our initial target was the $96-98 range and yesterday we set an official exit point at $97.90. We are closing the play at $97.90. The suggested options we listed have exploded in value and we suggest readers consider sticking to their own trading plan. If you choose to keep the play open be sure to re-evaluate (and probably tighten) your stop loss. We'll be sure to keep FDG on our internal watch list for another opportunity.


Picked on February 27 at $ 90.43
Change since picked: + 9.82
Earnings Date 02/05/05 (confirmed)
Average Daily Volume = 326 thousand

Dropped Puts

KLA-Tencor - KLAC - close: 48.04 chg: -0.83 stop: 47.75

Mixed news in the semiconductor sector is adding to the volatility. Hynix Semiconductor, a Korean company, issued a bearish forecast for chip prices this year. Meanwhile the Semiconductor Industry Association actually came out with a relatively positive report citing that January, normally one of the weakest months of the year, was actually better than expected. Plus, there were more analyst comments on the group that differed from JP Morgan's recent bullish view that lifted the sector earlier this week. The SOX continues to struggle with long-term resistance at its 200-week moving average and the 1.27 percent decline in the index was enough to pull KLAC under the $48.00 level and hit our stop loss at $47.75.


Picked on February 28 at $ 51.11
Change since picked: - 3.07
Earnings Date 01/20/05 (confirmed)
Average Daily Volume = 5.1 million



Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

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