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Daily Newsletter, Monday, 06/05/2006

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Table of Contents

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

Market Wrap

Ouija board spells U N C E R T A I N T Y

Just when market participants thought the ouija board had decoded a pausing Fed after Friday's "inflation friendly" nonfarm payroll figures, hawkish comments regarding inflation from Fed Chairman Bernanke once spelled UNCERTAINTY that the Fed wouldn't continue its stance of measured rate hikes.

July Fed Fund futures (ff06n) ticked 94.89 early in today's session, predicting a less-than 50% chance of a 25-basis point hike at the June meeting, but by the close settled at 94.82 an 72% probability that the Federal Open Market Committee will raise a quarter-point later this month to 5.25%.

Sabre-rattling comments by Ayatollah Ali Khamenei, Iran's Supreme Leader had equities stumbling out of the gate, with July Crude Oil futures (cl06n) jumping as high as $73.40 intra-day. The Ayatollah threatened that Iran might disrupt crude supplies to the West should the country be invaded over its nuclear program.

Despite the Ayatollah's threats, July Crude settled up 27 cents, or +0.37% at $72.60.

Middle East uncertainty did find what I would consider to be defensive buying in Treasuries, with the benchmark 10-year Yield once again undercutting the 5.00% level in early morning trade.

Market internals had been confirming some of the recent week's price action. New high/new low (NH/NL) indications are vastly improved from the 05/22/06 Market Wrap, but NASDAQ's 5-day NH/NL ratio softening up again at the mid-point of 50% suggests some short-term lack of bullish leadership.

U.S. Market Watch - 06/05/06 Close

A snapshot of today's PRICE action would depict a "slow bleed" lower for equities, where a notable break to the downside was found after Fed Chairman Bernanke said current core inflation measures were at the "upper end" of his and many Fed officials comfort zone.

While equities accelerated losses to the downside, sharp reversals were found in the Dollar Index (dx00y) with the dollar reversing losses, while sellers stepped in on Treasuries, with the benchmark 10-year YIELD ($TNX.X) finishing up 3.2 basis point to 5.026%. The StreetTracks Gold Trust (GLD) $62.29 -0.33% also reversed course on Dr. Bernanke's focus toward inflation.

The dollar's fluctuation continues to create a great deal of uncertainty among broader equity traders, as well as gold itself.

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I've been trading some gold equities long and short in the OptionInvenstor.com Market Monitor (BGO, NEM, GG), and boy have they been VOLATILE. I think traders will agree that a softer/weaker dollar trade tends to depict market psychology of a "Fed pause," and easing thoughts towards inflation. But as the Dollar Index (dx00y) challenges recent lows of 83.75, market participant certainly show jitters that a major breakdown in the greenback could open the floodgate for broader selling in equities.

August Gold futures (gc06q) currently trade down $7.90 at $640.80 after kissing the $650.00 mark prior to Monday's open outcry settlement at 01:30 PM EDT.

S&P 500 Index (SPX.X) - Daily Intervals

I touched briefly on the NASDAQ NH/NL ratio readings earlier tonight. While I don't post the SPX (500 stocks) NH/NL readings in my Market Internals, I do keep track of them in order to gather an observation of bullish/bearish leadership in this widely followed index.

The above chart of the SPX is updated from my last Market Wrap on 05/22/06 and our last visit. The SPX had just undercut the 1,254.78 level that day and traded its recent relative low on 05/24/06. Of the 500 stocks in the S&P 500, 3 had been able to achieve a new 52-week high, while 19 had traded a new 52-week low, with a DAILY NH/NL ratio of 13.64%.

Tonight's final tally would show 6 stocks achieved a new 52-week high, while 14 stocks a new 52-week low with a DAILY ratio of 30.00%. These comparison readings should have a bear looking to lock in some type of gain if they hadn't under more "oversold" NH/NL readings.

I've updated recent "Max Pain" Theory tabulations. The rather notable decline for August (from 1,300 in 5/24/06 Market Wrap) strongly suggests a flat to lower trade being expected during the summer months.

I want to quickly tie some of the overseas markets into the dollar's weakness. "Developing markets" as well as major foreign market's like Japan's have exhibited notable weakness in recent weeks.

Japan's Nikkei-225 ($NIKK) - 50-point box scale

The above chart of the Nikkei-225 is one worth being alert to near-term. If you think the Dow Industrials ($INDU) have had a tough time recently, the Nikkei as well as other Asian Pacific markets have been under some heavy selling pressure.

The Dow Industrials ($INDU) exhibits a similar supply/demand pattern as found in the Nikkei, where further weakness in the Nikkei-225 could have bearish implications.

Dow Industrials ($INDU) - 50-point box scale

Inflation fears, or dollar fears aren't just a "U.S. concern." One could argue that much of the weakness found in U.S. equity markets started overseas.

As the Dow Industrials were breaking to multi-year highs in May (red 5), the Nikkei-225 ($NIKK) was triggering a triple-bottom sell signal at 16,750.
 


New Plays

New Option Plays

Call Options Plays
Put Options Plays
Strangle Options Plays
None AMGN None
  BNI  
  BRL  
  WYNN  

New Calls

None today.
 

New Puts

Amgen Inc. - AMGN - close: 67.48 chg: -1.70 stop: 69.55

Company Description:
Amgen discovers, develops and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. With a broad and deep pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives. (source: company press release or website)

Why We Like It:
The BTK biotech index's three-week bounce has reversed course with a failed rally at its 50-dma and 200-dma. The sector was hit hard by profit taking today with a 3.5% decline in the BTK index. Shares of AMGN only lost 2.45% but shares of AMGN have produced a bearish "evening star" candlestick pattern. This candlestick pattern is a bearish reversal pattern and it occurred in AMGN just as the stock was testing resistance at its descending 50-dma. We are going to suggest puts with AMGN under $68.50 and our target will be the $62.65-62.25 range. More aggressive traders may want to aim lower since the P&F chart points to a $60 target. We do expect a bounce near the $65.00 level. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 70.00 YAA-SN open interest=8433 current ask $3.70
BUY PUT JUL 67.50 YAA-SU open interest=7601. current ask $2.30
BUY PUT JUL 65.00 YAA-SM open interest=14116 current ask $1.40

Picked on June 05 at $ 67.48
Change since picked: + 0.00
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

---

Burlington Nrth.SntFe - BNI - cls: 75.64 chg: -2.93 stop: 80.01

Company Description:
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. (source: company press release or website)

Why We Like It:
Our new bullish play in CSX is off to a terrible start thanks to a 3% sell-off in the transportation sector and another rise for crude oil. We're going to hedge our bets by adding a put play in BNI, another railroad. BNI is failing at resistance near $80.00 and the top of its descending channel. Technicals are bearish. We are going to suggest puts here with BNI under $78.00. More conservative traders may want to wait for a move under $75.00 before initiating positions. We're going to suggest two targets. Our first target will be the $70.50-70.00 range since BNI may have support at $70.00, bolstered by its simple 200-dma. The second target will be the $66.00-65.00 range, which is where the stock would appear to hit the bottom of its channel. Consider selling half or three quarters of your position near $70 and the remainder near $65. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 80.00 BNI-SP open interest= 5679 current ask $6.00
BUY PUT JUL 75.00 BNI-SO open interest= 2906 current ask $3.10
BUY PUT JUL 70.00 BNI-SN open interest= 4105 current ask $1.45

Picked on June 05 at $ 75.64
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.1 million

---

Barr Pharma - BRL - close: 52.20 chg: -1.55 stop: 54.25

Company Description:
Barr Pharmaceuticals, Inc. is a holding company whose principal subsidiaries, Barr Laboratories, Inc. and Duramed Pharmaceuticals, Inc., develop, manufacture and market generic and proprietary pharmaceuticals. The Company is the leading marketer and manufacturer of oral contraceptive products in the United States, based on industry data. The Company currently markets 22 generic oral contraceptive products under its Barr Laboratories, Inc. label and six proprietary (branded) oral contraceptive under the Duramed Pharmaceuticals, Inc. label. (source: company press release or website)

Why We Like It:
The oversold bounce in BRL is failing. The stock bounced high enough to fill the gap down from mid May and now the rally is stalling. Shares have struggled to breakout over the $54.00 region for the last couple of weeks and now technicals are turning bearish. The stock already has a bearish pattern of lower highs. Today's 2.88% decline was partially fueled by negative analyst comments (lowered earnings estimates). We are suggesting puts with BRL under $53.50. Our target is the $48.00-47.50 range near the May lows.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 55.00 BRL-SK open interest= 291 current ask $4.00
BUY PUT JUL 50.00 BRL-SJ open interest=1146 current ask $1.50

Picked on June 05 at $ 52.20
Change since picked: + 0.00
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

---

Wynn Resorts - WYNN - close: 69.11 chg: -2.01 stop: 73.51

Company Description:
The company owns and operates Wynn Las Vegas, a luxury hotel and destination casino resort located on the Las Vegas Strip which opened to the public on April 28, 2005. Wynn Las Vegas features 2,716 luxurious guest rooms and suites; an approximately 111,000 square foot casino; 22 food and beverage outlets; an on-site 18-hole golf course; approximately 223,000 square feet of meeting space; an on-site Ferrari and Maserati dealership; and approximately 76,000 square feet of retail space. Wynn Resorts, Limited is currently constructing Wynn Macau, a destination casino resort in the Macau Special Administrative Region of the People's Republic of China expected to open in the third quarter of 2006. (source: company press release or website)

Why We Like It:
The October 2005-April 2006 rally in WYNN has ended. Momentum began to stall in April and shares spent weeks consolidating under resistance at the $80.00 level. Now WYNN has broken down through multiple levels of support. More recently the stock has been consolidating sideways between $74.00 and $69.25. Today's 2.8% decline broke down below the bottom of this trading range and its rising 100-dma. The Point & Figure chart also looks pretty bearish with a descending triple-bottom breakdown sell signal and a $60 target. We are suggesting puts with WYNN under $70.00. We are going to suggest two targets. Consider selling half your position in the $65.25-65.00 range and then sell the rest of your position in the $61.00-60.00 range. The simple 200-dma near $60 could be support.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 70.00 UWY-SN open interest= 136 current ask $4.40
BUY PUT JUL 65.00 UWY-SM open interest= 277 current ask $2.30

Picked on June 05 at $ 69.11
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.2 million
 

New Strangles

None today.
 


Play Updates

In Play Updates and Reviews

Call Updates

Peabody Energy - BTU - close: 60.80 chg: -4.13 stop: 59.85

Monday proved to be a very rough day for stocks. It is very unfortunate that BTU's spike higher this morning (65.93) was not enough to hit our target in the $66.00-67.00 range. In one session the stock gave back all of its recent gains. Today's 6.3% decline was fueled by stronger than average volume. Odds are very good that BTU will test the 50-dma and the $60.00 level tomorrow. The question is whether or not this level will hold up as support. We are not suggesting new positions and more conservative traders may want to think about an early exit to protect their capital.

Picked on May 28 at $ 61.00
Change since picked: - 0.20
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 4.0 million

---

Cummins Inc - CMI - close: 109.15 chg: -2.95 stop: 106.99

CMI suffered a 2.6% decline during Monday's market-wide sell-off. The only good thing we could possibly find was that volume came in below average. The close under $110 and the two-day weakness has put a bearish hook on some of the short-term technical oscillators. We are not suggesting new positions. More conservative traders may want to tighten their stops.

Picked on May 31 at $110.21
Change since picked: - 1.06
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 1.0 million

---

CSX Corp. - CSX - close: 66.47 chg: -2.13 stop: 65.90

The transport stocks were hit pretty hard. The Dow Jones Transportation index lost 142 points for a 2.99% loss and a close back under its simple 50-dma. CSX followed suit with a 3.1% decline and a close under its own 50-dma. This is bad news. We are not suggesting new positions right now and if you opened plays today you may want to exit early. We're keeping the play open on the chance that CSX will bounce from support near $66.00.

Picked on June 04 at $ 68.60
Change since picked: - 2.13
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 2.1 million

---

Deere Co - DE - close: 85.07 change: -2.68 stop: 84.45

Looks like we should have used a trigger over the $88.00 level. Shares of DE did not escape the market's sell-off and the stock lost 3% to close right near the $85 level and its 50-dma. We are not suggesting new bullish positions at this time.

Picked on June 04 at $ 87.75
Change since picked: - 2.68
Earnings Date 08/15/06 (unconfirmed)
Average Daily Volume = 2.1 million

---

Halliburton - HAL - close: 74.25 chg: -2.53 stop: 69.99

Ouch! The sell-off in the oil stocks was pretty sharp despite the fact that crude oil edged higher on rising fears over Iran playing the oil card. HAL not only erased most of our gains with today's 3.29% decline but shares have produced a bearish engulfing candlestick pattern, which is typically viewed as a short-term bearish reversal. We would expect HAL to dip to the 10-dma near $73 and probably lower. We're not suggesting new positions at this time. There are two upcoming events for HAL. One is a two-day analyst meeting that begins on June 7th. The other is a 2-for-1 stock split on July 17th.

Picked on May 25 at $ 73.80
Change since picked: + 0.45
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.1 million

---

Hydril - HYDL - close: 74.45 change: -3.20 stop: 71.75

HYDL is another oil-sector casualty. Shares lost 4.1% and closed back under the $75.00 level. Short-term technicals look bearish. We are not suggesting new bullish positions at this time and if you opened call positions this morning you may want to exit early and await a new entry point later.

Picked on June 04 at $ 77.65
Change since picked: - 3.20
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 328 thousand

---

iShares Global Energy - IXC - cls: 103.88 chg: -2.46 stop: 99.49

Today's session was pretty rough for the IXC. The ETF lost 2.3% erasing most of our gains. Furthermore the IXC ishares produced a bearish reversal candlestick pattern. We are not suggesting new bullish positions at this time. The IXC should have support near $102.50 and again near $100.

Picked on May 25 at $103.67
Change since picked: + 0.21
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 47 thousand

---

Kerr Mcgee - KMG - close: 107.00 chg: -3.86 stop: 104.85

KMG lost 3.48% on Monday to completely erase last Friday's gains. The stock has produced a very clear bearish engulfing candlestick pattern, which is typically interpreted as a bearish reversal. We are not suggesting new bullish plays and if you did open positions this morning you may want to seriously consider exiting right now to protect your capital. We expect a dip to $105.00 or worse and our stop loss may be too close for the sort of volatility we're seeing right now.

Picked on June 04 at $110.86
Change since picked: - 3.86
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.6 million

---

Marathon Oil - MRO - close: 77.00 chg: -1.39 stop: 72.95

Same story, different oil stock. MRO erased early gains to produce a bearish engulfing candlestick pattern. We are not suggesting new bullish positions. If you are long calls you might want to exit early. We expect a dip toward $75.00 or worse.

Picked on June 04 at $ 78.39
Change since picked: - 1.39
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 3.1 million

---

Omnicom - OMC - close: 94.89 chg: -0.92 stop: 91.75

Shares of OMC, which have been a pillar of relative strength lately, are finally seeing some profit taking. We warned readers that it was probably time to take some money off the table. Right now we expect shares to consolidate toward the 10-dma (94.07) or toward the $92.50-93.00 region. We're not suggesting new positions. The big volume on today's decline is a bearish development.

Picked on May 15 at $ 92.05
Change since picked: + 2.84
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

---

Priceline.com - PCLN - close: 31.31 chg: -0.91 stop: 29.85

Tech stocks suffered some stiff losses on Monday. The NASDAQ lost 2.2% while the INX Internet index fell 1.98%. Shares of PCLN under performed its peers with a 2.8% decline. At this point we would expect a pull back toward support near $30.00. We're not suggesting new positions.

Picked on May 25 at $ 30.67
Change since picked: + 0.64
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 432 thousand

---

Transocean Inc. - RIG - close: 80.57 chg: -2.58 stop: 77.99

RIG is another oil stock casualty with a sharp reversal and a bearish engulfing candlestick pattern. We'd like to see a bounce from the $80.00 level but if that doesn't work then RIG does have some support near $78.00. We're not suggesting new positions at this time.

Picked on June 04 at $ 83.15
Change since picked: - 2.58
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 5.7 million

---

VF Corp. - VFC - close: 63.24 change: -1.20 stop: 61.84

The market-wide sell-off on Monday pulled VFC back toward previous resistance, now support, at the $63.00-63.25 region. A bounce from $63.00 could be used as a new bullish entry point but we'd hesitate to initiate new positions if the major averages are weak. More conservative traders might want to think about raising their stops toward $62.50 or $63.00.

Picked on June 01 at $ 63.51
Change since picked: - 0.27
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand

---

Valero Energy - VLO - close: 60.65 chg: -2.40 stop: 59.85

Monday produced an ugly session for VLO. The stock traded higher this morning so that when shares reversed course the stock produced a big bearish engulfing candlestick pattern. The selling stalled near $60.00 and its 10-dma, either of which might offer support but we are not very optimistic. We're not suggesting new positions at this time.

Picked on June 04 at $ 63.05
Change since picked: - 2.40
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 9.8 million
 

Put Updates

Apollo Group - APOL - close: 52.39 chg: -0.25 stop: 53.85

Sometimes the market does not make sense. Today's market sell-off was a great excuse to sell yet shares of APOL barely budged and closed with a 25-cent decline. We are not suggesting new bearish positions at this time. Look for a move back under $52.00 before considering positions. Our target is the $47.75-47.50 range. The $50.00 level is APOL's next level of support and we expect another bounce near $50.

Picked on May 17 at $ 51.75
Change since picked: + 0.64
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

---

Franklin Res. - BEN - close: 88.14 chg: -2.55 close: 92.55

BEN lost 2.8% and closed back under the $90.00 level. This looks like another entry point to buy puts again. More conservative traders may want to lower their stop loss. Our target is the $85.25-85.00 range, which is a slight adjustment from our initial target.

Picked on May 14 at $ 89.30
Change since picked: - 1.16
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

---

Digital River - DRIV - close: 40.81 chg: -2.75 stop: 45.55

DRIV showed lots of weakness on Monday. the stock lost 6.3% on volume that was more than twice the daily average. The stock closed under its 100-dma, which is bearish, and shares closed near their lows for the session, which is also bearish for tomorrow. We are suggesting two targets. Consider selling half your position at $40.20 and then sell the remainder at $37.65. We are concerned that the $37.50 region might be support with its slowly rising 200-dma. FYI: if you're a technical trader the 38.2% Fibonacci retracement of DRIV's rally would be about $38.65.

Picked on June 04 at $ 43.56
Change since picked: - 2.75
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 983 thousand

---

Intl. Bus. Mach. - IBM - cls: 79.06 chg: -0.46 stop: 81.05

Believe it or not we are still on the sidelines with IBM. For all of the market's weakness it could not push IBM under support at the $79.00 level today. We remain bearish. The stock did produce a bearish failed rally at the $80.00 level today. More aggressive traders may want to jump the gun but we're sticking to our play with a trigger to buy puts at $78.75. If triggered then we'll target a decline into the $73.50-73.00 range.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

---

Monster Worldwide - MNST - cls: 45.85 chg: -1.74 stop: 50.05*new*

MNST continues to sink and shares lost 3.65% on another day of strong volume. We are lowering our stop loss to $50.05. Our target is the $45.25-45.00 range but more aggressive traders may want to aim lower near the 200-dma. The P&F chart target has grown from $36 to $32.

Picked on May 31 at $ 48.87
Change since picked: - 3.02
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

---

Nucor - NUE - close: 50.41 chg: -3.49 stop: 55.15 *new*

Iron and steel stock NUE suffered some heavy selling today. The stock lost 6.47% and closed near its lows for the day, which is bearish for tomorrow. We are lowering our stop loss to $55.15. We are aiming for a decline into the $46.25-45.00 range but more conservative traders may want to take an early exit near its rising 100-dma (currently 48.57).

Picked on May 31 at $ 52.64 *split adjusted
Change since picked: - 2.23
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.8 million

---

SanDisk - SNDK - close: 54.12 chg: -1.01 stop: 60.26

SNDK has produced a bearish failed rally under its simple 10-dma today. The stock traded higher this morning after being upgraded but the early strength faded and the stock closed under its exponential 200-dma. Volume on today's 1.8% decline was well above the daily average. Our target remains in the $53.00-52.50 range.

Picked on May 23 at $ 58.98
Change since picked: - 3.85
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million
 

Strangle Updates

None
 

Dropped Calls

Carpenter Tech - CRS - close: 113.92 chg: -7.48 stop: 114.45

Stopped out! We keep trying to play the volatile steel and metal stocks but we're getting whipsawed out of them. If you bought positions on this morning's spike lower the day went from bad to worse with a 6.1% decline. The Point & Figure chart, which had just produced a new buy signal on Friday, has reversed into a "bull trap" pattern and we were caught in it.

Picked on June 04 at $121.40
Change since picked: - 7.48
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 540 thousand

---

Holly Corp. - HOC - close: 43.12 chg: -0.98 stop: 39.95

Target achieved. HOC did not escape the market's painful sell-off today but before shares of HOC produced its failed rally and bearish engulfing candlestick pattern today the stock hit our target. Actually shares gapped open higher (44.99) near the top of our target range (44.50-45.00). The play should have been closed at the opening bell. We'll watch for a bounce in the $40.00-42.00 region as a potential entry point for new plays.

Picked on May 25 at $ 40.60 *split adjusted
Change since picked: + 2.52
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume = 475 thousand

---

Terex Corp. - TEX - close: 89.30 chg: -4.55 stop: 88.99

We are going to pull the plug on our bullish play in TEX. Shares lost 4.8% and closed under what should have been support near the $90.00 level.

Picked on June 1 at $ 92.65
Change since picked: - 3.35
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 719 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

DISCLAIMER

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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