Closed Plays:

BWA and TEVA were stopped out. We're exiting early with KEY and LLL.


Play Updates


Arch Coal Inc. - ACI - close: 34.64

04/23 update: It appears that short-term support near $32.50 is holding for ACI. The stock is rebounding higher and just cleared some resistance near $34.00 and several of its key moving averages. On a short-term basis things look bullish for ACI but the stock is still stuck in the middle of its trading range with resistance in the $36-37 area.

This could be a very important week. ACI is due to report earnings on April 26th before the opening bell. Analysts are looking for a profit of 32 cents a share. There is a good chance that ACI's earnings could be the fuel that finally kicks the stock out of this range but the stock could honestly go either way here. I am not suggesting new positions ahead of the earnings report.

Please note that I am adjusting our exit strategy. We want to sell half of our position at $39.75. Our final, long-term target will be $44.75.

- Current Positions -
Nov 22, 2010 - entry price on ACI @ 30.15, option @ 3.90
symbol: ACI1221A35 2012 JAN $35 call - current bid/ask $ 4.20/ 4.30

- or -

Nov 22, 2010 - entry price on ACI @ 30.15, option @ 5.15
symbol: ACI1319A35 2013 JAN $35 call - current bid/ask $ 6.45/ 7.10

04/23/11 Adjusted targets to $39.75 and $44.75
03/05/11 New stop loss @ 29.75
01/22/11 New stop loss @ 27.75
01/15/11 New stop loss @ 28.90
01/01/11 new stop loss @ 29.75
12/25/10 New stop loss @ 28.75
11/22/10 Play opened. ACI @ $30.15

Current Target: $39.75, $44.50
Current Stop loss: 29.75
Play Entered on: 11/22/10
Originally listed in the New Plays 11/20/10


AK Steel Holding - AKS - close: 16.07

04/23 update: AKS posted a gain for the week and closed above technical resistance with a move above several key moving averages. Yet the stock has not been able to rally past its April highs. Shares could see a lot of volatility this week as AKS is due to report earnings on April 26th before the opening bell. Analysts are looking for a profit of 32 cents a share. I am not suggesting new positions ahead of the earnings report. More conservative traders may want to adjust their stops.

AKS can be volatile so our plan was to limit our risk by keeping our position size small. Our long-term target is the $25.00 area.

- Current Positions -
Feb 22, 2011 - entry price on AKS @ 16.10, option @ 1.55
symbol: AKS1221A20 2012 JAN $20 call - current bid/ask $ 0.98/ 1.03

- or -

Feb 22, 2011 - entry price on AKS @ 16.10, option @ 2.95
symbol: AKS1319A20 2013 JAN $20 call - current bid/ask $ 1.92/ 2.57

Current Target: $25.00
Current Stop loss: 13.90
Play Entered on: 02/22/11
Originally listed on the Watch List: 12/25/10


Allegheny Technology - ATI - close: 69.40

04/23 update: ATI was showing strength early last week and hit new two-year highs with an intraday move over $70.00 on Tuesday. The stock has been hovering under resistance near $70.00 as investors wait for earnings. ATI is due to report earnings on April 27th before the opening bell and Wall Street expects a profit of 50 cents a share. I am not suggesting new bullish positions ahead of the earnings report. More conservative traders may want to adjust their stops or even take profits early before ATI announces earnings.

- Suggested Positions -
Mar 10, 2011 - entry price on ATI @ 60.78, option @ 6.40
symbol: ATI1221A70 2012 JAN $70 call - current bid/ask $ 8.80/ 9.10

- or -

Mar 10, 2011 - entry price on ATI @ 60.78, option @ 10.20
symbol: ATI1319A70 2013 JAN $70 call - current bid/ask $11.90/16.00

04/02/11 New stop loss @ 59.00

Current Target: $75.00, and $85.00
Current Stop loss: 59.00
Play Entered on: 03/10/11
Originally listed on the Watch List: 02/05/11


BE Aerospace Inc. - BEAV - close: 37.26

04/23 update: Buckle your seatbelt. Monday could be a volatile day for BEAV. The company reports earnings Monday morning before the opening bell. Earnings estimates are at 46 cents a share. I am not suggesting new positions at this time. Currently our target to exit is the $40.00 level. More aggressive traders could aim higher. If BEAV moves lower look for support near $35.00 and then at the 200-dma.

- Current Positions -
Feb 23, 2011 - entry price on BEAV @ 34.00, option @ 2.75
symbol: BEAV1116G35 2011 JUL $35 call - current bid/ask $ 3.60/ 3.90

04/09/11 New stop loss @ 32.95
04/02/11 New stop loss @ 31.95

Current Target: $40.00
Current Stop loss: 32.95
Play Entered on: 02/23/11
Originally listed on the Watch List: 01/22/11


Bristol-Myers Squibb Company - BMY - close: 27.82

04/23 update: A week has gone by and BMY has barely moved. Shares are still consolidating under resistance at $28.00. That may not change as investors wait for BMY's earnings. The company is due to report on April 28th before the opening bell. Analysts expect a profit of 53 cents a share. I am not suggesting new positions at this time. More conservative traders may want to tighten their stop loss!

Our long-term targets is $32.00. Investors might want to consider turning this trade into a calendar spread or vertical spread to maximize its potential.

- Suggested Positions -
Mar 14, 2011 - entry price on BMY @ 26.14, option @ 1.13
symbol: BMY1221A27.5 2012 JAN $27.50 call - current bid/ask $ 1.79/ 1.83

- or -

Mar 14, 2011 - entry price on BMY @ 26.14, option @ 1.63
symbol: BMY1319A27.5 2013 JAN $27.50 call - current bid/ask $ 2.45/ 2.57

Current Target: $32.00
Current Stop loss: 24.95
Play Entered on: 03/14/11
Originally listed in the New Plays 03/12/11


Berkshire Hathaway - BRK.B - close: 82.36

04/23 update: BRK.B gave us another scare with a breakdown under its 200-dma and an intraday dip under the $80.00 level but shares are bouncing from this psychological support level. Now shares are back above their 200-dma and testing technical resistance at its 100-dma. The Sokol sell-off seems to be over now. On a positive note the weekly chart has produced a bullish engulfing candlestick reversal pattern but this needs to see confirmation. I am not suggesting new positions at this time.

- Current Positions -
Oct 29, 2010 - entry price on BRK.B @ 79.00, option @ 5.00
symbol: BRKB1221A90 2012 JAN $90 call - current bid/ask $ 2.84/ 2.94

01/22/11 2011 January calls expired (-100%)
12/11/10 New stop loss @ 77.75.
11/20/10 New entry point on bounce from 200-dma
11/20/10 New stop @ 75.75
10/29/10 Play triggered on dip at $79.00.

Current Target: $ 99.00
Current Stop loss: 77.75
Play Entered on: 10/29/10
Originally listed on the Watch List 09/11/10


Citigroup, Inc. - C - close: 4.55

04/23 update: Citigroup managed to post a gain for the week after beating earnings estimates by a penny. Shares did tag technical support at their 200-dma on the 18th and the rebound has currently stalled near resistance at $4.60 and its 50-dma. Overall the financials are still lagging behind the rest of the market. Currently I am not suggesting new positions at this time but a close over $4.70 might change my mind.

We still have about two weeks left before Citigroup's 10-for-1 reverse stock split. The reverse split will occur after trading closes on May 6th and C will start trading at the new price on Monday, May 9th.

- Current Positions -
Feb 23, 2011 - entry price on Citigroup stock (C) @ 4.60

- or -

Feb 23, 2011 - entry price on C @ 4.60, option @ $0.48
symbol: C1221A5 2012 JAN $5 call - current bid/ask $ 0.21/ 0.23

- or -

Feb 23, 2011 - entry price on C @ 4.60, option @ $0.85
symbol: C1319A5 2013 JAN $5 call - current bid/ask $ 0.54/ 0.56

Current Target: $6.50, and $7.75
Current Stop loss: 4.19
Play Entered on: 02/23/11
Originally listed on the Watch List: 02/19/11


CACI International - CACI - close: 60.14

04/23 update: CACI gave us a scare on Monday with a breakdown under technical support at the 50-dma. Thankfully the stock has recovered but the bounce has stalled near $60.00. We do not want to launch new positions in front of the earnings report due out on May 4th. More conservative traders might want to consider a stop loss closer to $58.00.

Earlier Comments:
I do consider this a more aggressive trade and if we keep our position size small we can limit our risk. The March low was close to $57.00. I'm listing our stop loss at $56.75. Our first upside target is $69.00. CACI doesn't have LEAPS so we'll have to use the 2011 September calls.

- Current (small) Positions -
Apr 4, 2011 - entry price on CACI @ 62.04, option @ 3.30
symbol: CACI1117I65 2011 SEP $65 call - current bid/ask $ 1.85/ 2.05

Current Target: $69.00
Current Stop loss: 56.75
Play Entered on: 04/04/11
Originally listed on the Watch List: 02/12/11


Canadian Natl. Railway Co. - CNI - close: 73.23

04/23 update: It was a volatile week for CNI but the stock appears to have produced a short-term bottom with the dip and bounce from the $71.00 level. I wouldn't get too comfortable. Railroad companies have been delivering generally positive earnings but investors have been selling the news. CNI is due to report earnings on April 26th after the closing bell. Wall Street has set their estimates at 88 cents a share. I am not suggesting new positions in front of the earnings report. More conservative traders may want to raise their stop loss closer to $70 or $71. Our stop is at $69.00. Our long-term target is $89.00.

- Current Positions -
Feb 28, 2011 - entry price on CNI @ 72.39, option @ 2.90
symbol: CNI1221A80 2012 JAN $80 call - current bid/ask $ 2.40/ 2.70

04/02/11 New stop loss @ 69.00

Current Target: $89.00
Current Stop loss: 69.00
Play Entered on: 02/28/11
Originally listed in the New Plays 02/26/11


Costco Wholesale - COST - close: 78.87

04/23 update: COST has rallied to a new all-time high and looks poised to challenge $80 soon. I would not launch new positions at these levels. Wait for a dip. Readers may want to start small and slowly build up a position. Our long-term targets are $89.50 and $99.00.

- Current Positions -
Apr 7, 2011 - entry price on COST @ 76.37, option @ 3.80
symbol:COST1221A80 2012 JAN $80 call - current bid/ask $ 4.75/ 4.90

- or -

Apr 7, 2011 - entry price on COST @ 76.37, option @ 5.05
symbol:COST1319A85 2013 JAN $85 call - current bid/ask $ 5.55/ 6.00

Current Target: $89.50, 99.00
Current Stop loss: 69.95
Play Entered on: 04/07/11
Originally listed on the Watch List: 01/29/11


Walt Disney Co. - DIS - close: 42.27

04/23 update: We have been expecting a dip toward $40.00 for DIS. Shares hit $40.46 and the stock bounced from technical support at its 100-dma on April 18th. Now shares are testing technical resistance at the 50-dma. I am not suggesting new positions at this time. FYI: DIS is due to report earnings on May 10th.

- Current Positions -
Oct 27, 2010 - entry price on DIS @ 35.60, option @ 2.23
symbol: DIS1221A40 2012 JAN $40 call - current bid/ask $ 4.80/ 4.90

- or -

Oct 27, 2010 - entry price on DIS @ 35.60, option @ 3.63
symbol: DIS1319A40 2013 JAN $40 call - current bid/ask $ 6.75/ 7.00

02/12/11 New stop loss @ 37.85
02/09/11 1st Target Hit. Options @ +137% and +103%
02/05/11 New stop loss @ 35.75
01/08/11 New stop loss @ 34.95
01/08/11 Target changed to $43.00 and $46.00
10/27/10 Play opened, DIS opened @ $35.60

Current Target(s): $43.00, 49.00
Current Stop loss: 37.85
Play Entered on: 10/27/10
Originally listed on the Watch List 10/24/10


Brinker International - EAT - close: 24.75

04/23 update: EAT rallied back toward its 2011 highs and stalled. Earnings are coming up this week so I would expect EAT To consolidate sideways until the report. The company should announce on April 27th before the opening bell. Analysts expect to see a profit of 45 cents a share. I am not suggesting new bullish positions at this time.

- Current Positions -
Feb 23, 2011 - entry price on EAT @ 22.50, option @ $ 1.10
symbol: EAT1116G25 2011 JUL $25 call - current bid/ask $ 1.35/ 1.65

04/02/11 New stop @ 22.90
03/26/11 New stop @ $21.95

Current Target: $29.50
Current Stop loss: 22.90
Play Entered on: 02/23/11
Originally listed on the Watch List: 02/12/11


Ford Motor Co - F - close: 15.43

04/23 update: Investors bought the dip again near support at $14.50 and its 200-dma. The rally past $15.00 and its 50-dma is bullish. While I would like to buy this bounce I suggest we wait. Ford is due to report earnings on Tuesday morning (April 26th) before the market opens. Wall Street is expecting a profit of 50 cents a share. Let's wait and see how investors react to the earnings news before we consider new positions.

Our long-term exit targets are $19.75 and $24.00.

- Suggested Positions -
Feb 28, 2011 - entry price on F @ 15.29, option @ 2.17
symbol: F1221A15 2012 JAN $15 call - current bid/ask $ 1.95/ 1.99

- or -

Feb 28, 2011 - entry price on F @ 15.29, option @ 1.50
symbol: F1319A20 2013 JAN $20 call - current bid/ask $ 1.29/ 1.39

03/26/11 New stop loss @ $12.95

Current Target: $19.75, and $24.00
Current Stop loss: 12.95
Play Entered on: 02/28/11
Originally listed in the New Plays 02/26/11


Fiserv, Inc. - FISV - close: 63.75

04/23 update: FISV temporarily hit a new all-time high over $64.00 this past week. The stock looks poised to move higher but I suspect FISV will continue to consolidate sideways until we see its earnings report. FISV should announce on April 27th after the closing bell. Estimates are for $1.04 a share. We don't want to launch positions in front of earnings.

- Suggested Positions -
Feb 14, 2011 - entry price on FISV @ 62.30, option @ 3.20
symbol: FISV1117I65 2011 SEP $65 call - current bid/ask $ 2.75/ 3.10

Current Target: $74.75
Current Stop loss: 57.50
Play Entered on: 02/14/11
Originally listed on the Watch List: 01/29/11
Originally listed in the New Plays 02/12/11


SPDR Gold ETF - GLD - close: 146.74

04/23 update: It was an historic week for gold. The U.S. dollar's drop to new multi-year lows and worries over inflation helped lift gold past $1,500 an ounce for the first time ever. The GLD also hit historic highs. Now the commodity looks a little short-term overbought. I would expect a dip but the trend is up.

Last week I suggested that conservative traders stick to our prior plan and exit our GLD calls at $149.00. Currently the newsletter is taking a more interactive approach. We'll try and ride this move higher and continue to adjust our stop losses. At the moment we have a final target at $159.00 and a stop at $139.40.

- Current Positions -
Aug 6, 2010 - entry price on GLD @ 118.00, option @ 12.45*
symbol: GLD1221A130 2012 Jan $130 call - current bid/ask $19.80/20.05

*Adjusted entry price from $10.75 to $12.45.

04/16/11 New stop loss @ 139.40, new exit target @ $159
*04/16/11 April put has expired. $1.70 added to our cost.
02/26/11 New stop loss @ 127.00
01/18/11 GLD opened at $133.63. April $125 put opened at $1.70
01/15/11 Added April Puts to protect ourselves from further declines.
01/08/11 Expecting a correction toward $125
11/09/10 Target hit - GLD opened at $138.70, 2011 Mar. Call opened @ $20.00 (+159%)
11/06/10 new stop @ 123.40
10/30/10 New stop @ 121.00. Readers may want to exit ahead of FOMC meeting
10/02/10 Sell half of the 2011 March calls, option @ 12.70 (+64.9%)
10/02/10 New stop $ 118.49
09/25/10 New stop @ 116.45, new target 138.50

Current Target(s): $149.00
Current Stop loss: 127.00
Play Entered on: 08/06/10
Originally listed on the Watch List 06/05/10


Goodyear Tire - GT - close: 15.96

04/23 update: It was a bullish week for GT with the stock breaking out from its consolidation and closing at new 52-week highs. The move is bullish and I'm tempted to launch positions here. However, GT is due to report earnings on April 29th and I would hesitate to launch positions in front of earnings. Analysts are expecting a profit of 12 cents a share. Our long-term target is $18.50.

- Current Positions -
Feb 23, 2011 - entry price on GT @ 13.50, option @ 1.90
symbol: GT1221A15 2012 JAN $15 call - current bid/ask $ 2.90/ 3.00

- or -

Feb 23, 2011 - entry price on GT @ 13.50, option @ 2.90
symbol: GT1319A15 2013 JAN $15 call - current bid/ask $ 4.20/ 4.40

03/26/11 New stop loss @ 12.75

Current Target: $18.50
Current Stop loss: 12.75
Play Entered on: 02/23/11
Originally listed on the Watch List: 02/19/11


James River Coal Co. - JRCC - close: 22.77

04/23 update: JRCC only produced a minor gain for last week. More importantly it looks like shares may have set a new short-term bottom with the bounce from the $21.35 area. Earnings are coming up near the end of April or early May so I would hesitate to launch positions here. Our long-term target is $29.50. We do want to keep our position size small to limit our risk.

- Current Positions -
Apr 12, 2011 - entry price on JRCC @ 22.50, option @ 3.10
symbol: JRCC1221A25 2012 JAN $25 call - current bid/ask $ 2.60/ 2.90

- or -

Apr 12, 2011 - entry price on JRCC @ 22.50, option @ 4.70
symbol: JRCC1319A27 2013 JAN $27 call - current bid/ask $ 2.65/ 5.70

Current Target: $29.50
Current Stop loss: 19.90
Play Entered on: 04/12/11
Originally listed on the Watch List: 01/22/11


Monsanto Co. - MON - close: 67.52

04/23 update: Little has changed for MON in a week. Traders bought the dip again near $66.00 but the rebound has stalled near $68.00. MON is suffering a bearish trend of lower highs and lower lows.

Once again I'm suggesting that more conservative traders may want to consider an early exit. I am not suggesting new positions at this time. If the weakness continues I'm expecting a correction toward support near the $63.00-62.50 area and its 200-dma.

Prior Comments:
Our plan was to keep our position size small to limit our risk since MON can be so volatile at times. Our long-term targets are the $85-90 zone.

- Current (SMALL) Positions -
Mar 15, 2011 - entry price on MON @ 65.50, option @ 6.75
symbol: MON1221A70 2012 JAN $70 call - current bid/ask $ 5.90/ 6.00

- or -

Mar 15, 2011 - entry price on MON @ 65.50, option @ 8.75
symbol: MON1319A75 2013 JAN $75 call - current bid/ask $ 7.30/ 7.80

74/09/11 New stop loss @ 61.75, Readers may want to exit early now.

Current Target(s): $85.00
Current Stop loss: 59.90
Play Entered on: 03/15/11
Originally listed on the Watch List: 01/08/11


Petroleo Brasileiro (a.k.a. Petrobras) - PBR - close: 38.22

04/23 update: The April sell-off continued until PBR hit technical support at its 200-dma (near $36). I cautioned readers to look for this dip and the bounce can be used as a new entry point. However, PBR now faces likely resistance at its 50-dma and the $40 level overhead. Long-term I remain bullish on PBR and the oil sector in general.

We have a stop loss at $35.75. The plan was to keep our position size small because PBR can be a volatile stock. Our long-term target is $53.00.

- Current (SMALL) Positions -
Apr 12, 2011 - entry price on PBR @ 39.00, option @ 3.35
symbol: PBR1221A40 2012 JAN $40 call - current bid/ask $ 2.79/ 2.86

- or -

Apr 12, 2011 - entry price on PBR @ 39.00, option @ 3.15
symbol: PBR1319A45 2013 JAN $45 call - current bid/ask $ 2.86/ 2.98

Current Target(s): $53.00
Current Stop loss: 35.75
Play Entered on: 04/12/11
Originally listed on the Watch List: 03/26/11


PACCAR Inc. - PCAR - close: 53.27

04/23 update: PCAR's earnings were positive. The company beat on revenues and beat earnings estimates by four cents. The stock rallied on the news and is now challenging resistance near its early April highs. I would expect a dip here but we can use dips in the $52-50 zone as a new entry point.

Please note our new stop loss at $46.45. More conservative traders may want to use a higher stop loss.

FYI: If looks like PCAR must have had some sort of special dividend to create these odd strike prices. Instead of a normal $55.00 strike price PCAR has $54.70 strikes.

- Current (SMALL) Positions -
Mar 21, 2011 - entry price on PCAR @ 50.75, option @ 3.70
PCAR1221A54.7 2012 JAN $54.70 call - current bid/ask $ 4.30/ 4.60

- or -

Mar 21, 2011 - entry price on PCAR @ 50.75, option @ 8.00
PCAR1319A54.7 2013 JAN $54.70 call - current bid/ask $ 7.20/ 8.30

Current Target(s): $58.00, 64.00
Current Stop loss: 46.45
Play Entered on: 03/21/11
Originally listed on the Watch List: 03/19/11


Scotts Miracle Grow Co. - SMG - close: 57.48

04/23 update: SMG is still bouncing from its test of the 50-dma but the stock isn't making much progress. The stock has been struggling with resistance in the $57.50 area. The trend is up but I'm a little hesitant to launch positions this close to earnings (expected on May 3rd).

Earlier Comments:
We want to keep our position size small to limit our risk. SMG doesn't have LEAPS so we'll have to buy September calls. Our target is the $65-70 zone.

- Current (SMALL) Positions -
Mar 25, 2011 - entry price on SMG @ 58.00, option @ 3.00
SMG1117I60 2011 SEP $60 call - current bid/ask $ 2.00/ 2.20

Current Target(s): $65.00-70.00
Current Stop loss: 53.75
Play Entered on: 03/25/11
Originally listed on the Watch List: 03/05/11


Southwestern Energy Co. - SWN - close: 40.54

04/23 update: Crude oil and the oil sector have continued to bounce from their April lows. SWN is now above round-number resistance at the $40.00 level. The close over $40.50 looks like a new bullish entry point. However, readers may want to wait until after the earnings report on April 28th before considering new positions. SWN reports after the market's closing bell and analysts are looking for a profit of 39 cents a share.

Our long-term target is the $50-52.50 zone.

- Current (SMALL) Positions -
Apr 7, 2011 - entry price on SWN @ 40.50, option @ 2.90
SWN1221A45 2012 JAN $45 call - current bid/ask $ 2.59/ 2.65

- or -

Apr 7, 2011 - entry price on SWN @ 40.50, option @ 5.85
SWN1319A45 2013 JAN $45 call - current bid/ask $ 4.95/ 5.35

Current Target(s): $50.00-52.50
Current Stop loss: 36.75
Play Entered on: 04/07/11
Originally listed on the Watch List: 04/02/11



CLOSED Plays


BorgWarner Inc. - BWA - close: 76.94

04/23 update: Hmmm... was our stop loss too tight? Were market makers trying to trigger some stops? BWA found support near $70.00 (actually 70.07) on March 15th. Yet this past week shares dipped to $69.26 before bouncing back above the $70.00 level on April 18th. Our stop loss was hit at $69.75 closing this trade. After a painful two-week sell-off from its April highs now BWA is bouncing with a move from $69.26 to almost $77 in four days.

I warned readers that BWA was volatile but this is still frustrating. Keep in mind our plan was to use small positions to limit our risk.

- Current Positions -
Feb 23, 2011 - entry price on BWA @ 74.00, option @ 4.20
symbol: BWA1116G80 2011 JUL $80 call - exit @ $1.25 (-70.2%)

04/18 Stopped out @ $69.75, Option @ $1.25 (-70.2%)

Chart of BWA:

Current Target: $88.00, $99.00
Current Stop loss: 69.75
Play Entered on: 02/23/11
Originally listed on the Watch List: 02/05/11


KeyCorp - KEY - close: 8.35

04/23 update: KEY reported earnings on April 18th and investors were unhappy with the results. Shares have now fallen below support near $8.50 and below technical support at the 200-dma. I am throwing in the towel on KEY. Bears could argue the recent declines could help shape the finishing touches of a bearish head-and-shoulders pattern. I am suggesting we exit positions immediately to cut our losses.

- Current Positions -
Mar 17, 2011 - entry price on KEY @ 8.60, option @ 0.87
symbol: KEY1221A10 2012 JAN $10 call - exit bid $0.39 (-55.1%)

- or -

Mar 17, 2011 - entry price on KEY @ 8.60, option @ 1.35
symbol: KEY1319A10 2013 JAN $10 call - exit bid $0.58 (-57%)

04/23/11 Exit early. Options @ -55% & -57%

Chart of KEY:

Current Target(s): $12.00, 14.00
Current Stop loss: 7.85
Play Entered on: 03/17/11
Originally listed on the Watch List: 02/26/11


L-3 Communications - LLL - close: 77.69

04/23 update: That's close enough for me. Last week I expressed my concern that defense names might struggle as congress seeks to cut the U.S. budget. However, instead of exiting a week ago I suggested we exit on a bounce at $77.75. Well LLL rallied to $77.71 on Thursday. Let's go ahead and abandon ship now.

- Current Positions -
Nov 11, 2010 - entry price on LLL @ 71.87, option @ 5.80
symbol: LLL1221A75 2012 Jan $75 call - Exit @ $6.80 (+17.2%)

04/23/11 Exit early @ 77.69, Option @ 6.80 (+17.2%)
04/16/11 Plan on an exit soon! New exit target 77.75
03/26/11 New stop loss @ 74.75
02/12/11 New stop loss @ 73.75
02/05/11 There was no follow through lower.
01/29/11 LLL is correcting lower!
01/08/11 Take Profits Early. LLL @ 78.23. Option @ $8.50 (+46.5%)
01/08/11 New stop loss @ 69.90
11/11/10 Play triggered with LLL's gap open @ 71.87

Chart of LLL:

Current Target(s): $77.75
Current Stop loss: 73.75
Play Entered on: 11/11/10
Originally listed on the Watch List 11/06/10


Teva Pharmaceuticals - TEVA - close: 45.01

04/23 update: Ouch! Biotechs can be tough to trade. A week ago I wrote about news from rival Biogen (BIIB) making progress with its multiple sclerosis drug sending shares of TEVA lower. This past week BIIB reported earnings and offered even more news on its latest trials for their MS drug, a drug that will rival TEVA's treatment. Wall Street is obviously worried that BIIB's treatment could spell lowered sales for TEVA as shares of TEVA gapped open almost ten percent lower on Thursday.

Thursday saw TEVA opened lower at $45.81. Our stop loss was $46.90 so the play was immediately closed.

Earlier Comments:
We wanted to keep our position size small to limit our risk.

- Current Positions -
Mar 11, 2011 - entry price on TEVA @ 49.00, option @ 2.40
symbol: TEVA1221A55 2012 JAN $55 call - exit @ $1.05 (-56.2%)

- or -

Mar 11, 2011 - entry price on TEVA @ 49.00, option @ 3.35
symbol: TEVA1319A60 2013 JAN $60 call - exit @ $2.07 (-38.2%)

04/21 Stopped out on gap down. Options @ -56.2% & -38.2%
04/09 New stop loss @ 46.90
03/19 New stop loss at $45.90

Chart of TEVA:

Current Target(s): $56.00 & 62.50
Current Stop loss: 46.90
Play Entered on: 03/11/11
Originally listed on the Watch List: 01/29/11