Closed Plays


CBG was closed


Play Updates


Allergan Inc. - AGN - close: 82.40

Comments:
11/19 update: The action in AGN was bearish but that's not surprising given the market's decline. Investors have a decision to make. Either raise your stop to limit your risk or widen your stop to give AGN a little more room to move. I am somewhat concerned that AGN has broken the bullish trend of higher lows with last Thursday's drop. I suspect that we'll see AGN correct lower toward $80.00 or toward the 200-dma near $79.00. With our stop loss at $79.45 we would get stopped out if AGN pulled back to its major moving average.

I am suggesting we move our stop loss to $77.45, which is under the early October low of $77.71. It does raise the risk on this trade but it gives AGN a chance to find support near the simple and exponential 200-dma.

Earlier Comments:
Option spreads are wide for these LEAPS. We want to keep our position size pretty small to limit our risk.

- Suggested Positions -
OCT 17, 2011 - entry price on AGN @ 85.46, option @ 5.10
symbol: AGN1319A100 2013 JAN $100 call - current bid/ask $ 2.20/ 5.00

11/19/11 Taking an aggressive stance on our stop loss and moving it down to $77.45
10/22/11 Earnings are coming up. Readers might want to consider raising their stop loss. We are keeping ours at $79.45.

Current Target: $99.00
Current Stop loss: 77.45
Play Entered on: 10/17/11
Originally listed on the Watch List: 09/24/11


Bank of America - BAC - close: 5.78

Comments:
11/19 update: Financial stocks were some of the worst performers last week as investors fret over the situation in Europe and the exposure American banks might have to the EU debt. Last week the Fitch rating agency published a report saying the major U.S. banks would suffer if the EU debt contagion spread. Gee, thanks, Fitch. Like we didn't already know that.

I think we're going to see BAC trade lower soon. There was a report from Reuters late this past week suggesting that S&P was going to change the way they rate the credit ratings of banks. Bank of America, Citigroup (C) and Morgan Stanley (MS) might all see their credit rating downgraded by S&P after they implement this new rating process. That will likely send shares of BAC lower.

The October low was $5.13. I would look for a new dip into the $5.15-5.00 zone as a new entry point to buy calls. We are setting up a new entry point and LEAPS position.

We'll use a trigger at $5.15 to buy the 2013 $10.00 call. These will be pretty cheap by the time BAC hits $5.15 so I am not listing a stop loss on this position.

- Suggested Positions -
AUG 29, 2011 - entry price on BAC @ 8.10, option @ 0.57
symbol: BAC1221A10 2012 JAN $10 call - current bid/ask $ 0.01/ 0.02
(no stop loss on this position)

- or -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.47/ 0.49
(No stop loss on this position)

(2nd Position: Trigger to buy calls @ $5.15)

--- 00, 2011 - entry price on BAC @ -.--, option @ -.--
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.47/ 0.49
(no stop loss on this position)

11/19/11 New trigger to buy calls @ $5.15 (see 2nd position)
10/03/11 Sept. 26th position stopped out at $5.75.
2012 Jan. $7.50 call @ 0.48 (-27.2%)
2013 Jan. $10 call @ 0.74 (-26%)
10/01 raising our stop loss on the Sep. 26th position to $5.75
09/24 adding 2nd position, stop loss at $5.40
09/03 no stop loss on this trade at this time.

Current Target: $12.00-to-$15.00
Current Stop loss: see details above
Play Entered on: 08/29/11
Originally listed in the New Plays 08/27/11


Bristol Meyers Squibb - BMY - close: 30.81

Comments:
11/19 update: It was not a good week for BMY. Shares of this drug maker broke down under support in the $31.00 region. The stock looks headed for support near old resistance at the $30.00 mark. We have a stop loss at $29.40. If the market sells off too hard we could actually see BMY hit our stop loss and close this trade. On the other hand if we see BMY hold support near $30.00 then investors can use the pull back or a bounce from $30.00 as a new entry point.

Earlier Comments:
We have two exit targets. One at $33.50 and a longer-term target at $35.75. NOTE: BMY is not a very fast moving stock. We will need to be patient.

- Suggested Positions -
SEP 19, 2011 - entry price on BMY @ 30.53, option @ 1.20
symbol: BMY1319A35 2013 JAN $35 call - current bid/ask $ 1.15/ 1.21

10/22/11 BMY is due to report earnings this week on Oct. 27th. Readers may want to take profits now or prior to the report.
10/08/11 new stop loss @ 29.40
09/16 Friday's close at $30.53 is our trigger to buy calls. Our entry will be Monday morning.

Current Target: $33.50 and 35.75
Current Stop loss: 29.40
Play Entered on: 09/19/11
Originally listed on the Watch List: 09/10/11


Beazer Homes - BZH - close: 2.12

Comments:
11/19 update: I warned readers that BZH could see some profit taking surrounding its earnings report. The company reported earnings on Nov. 15h and management announced a loss of 57 cents. That is 21 cents worse than expected even though revenues soared +25% to $334.9 million, which was above expectations. BZH said their backlog of homes to build has surged from 772 a year ago to 1,450 today.

I am expecting the correction to pull BZH toward the $2.00 level. Worst case scenario we might see a dip to its 50-dma near $1.86. More conservative traders might want to consider raising their stop loss since we have a wide stop loss at $1.57.

- Suggested Positions -

(stock position)
OCT 28, 2011 - entry price on BZH @ $2.12

(option position)
OCT 28, 2011 - entry price on BZH @ 2.12, option @ 0.70
symbol: BZH1319A2.5 2013 JAN $2.50 call - current bid/ask $ 0.70/ 0.80

11/15/11 BZH reports a loss of 57 cents a share, worse than expected
11/12 BZH has seen a big bounce. Cautious investors may want to take profits now before BZH reports earnings on Nov. 15th. (BZH +13.2%, option +21.4%)
10/28 trade begins: BZH opens @ $2.12
10/27 BZH meets our entry point requirement with a close over $2.05

Current Target: $3.70
Current Stop loss: 1.57
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/22/11


Cisco Systems - CSCO - close: 18.42

Comments:
11/19 update: Technology stocks were underperformers last week although not quite as bad as the financials. CSCO retreated from multi-month highs. Shares look like they could fill the gap. Previously I suggested readers wait for a dip toward the $18.00-17.50 zone. I would still wait. More conservative traders may want to wait and buy calls on a bounce from this area.

- Suggested Positions -
OCT 28, 2011 - entry price on CSCO @ 18.28, option @ 1.68
symbol: CSCO1319A20 2013 JAN $20 call - current bid/ask $1.96/2.01

10/29/11 new stop loss @ 16.40
10/28/11 stock opens at $18.28
10/27/11 CSCO meets our entry requirement: close at $18.44
10/22/11 Added entry to buy a close over $17.75
10/15/11 We are adjusting our entry point. Wait for a dip to $16.65
10/14/11 CSCO hit our entry point requirement for a close over $17.50.

Current Target: $21.75
Current Stop loss: 16.40
Play Entered on: 10/28/11
Originally listed on the Watch List: 10/08/11


CSX Corp. - CSX - close: 21.64

Comments:
11/19 update: Our new trade on CSX is open. Unfortunately our positions have been opened near the high for the week with Monday morning's gap higher. CSX gapped open at $22.59. During the two-day market sell-off shares broke short-term support near $22.00. Now CSX is trading near the bottom of its previous range in the $21.25 area.

I am not convinced the market correction is over. Readers may want to wait on new positions. We could see CSX retest the $21 level or even drop toward $20.00 before rebounding. I would be tempted to buy call LEAPS on a bounce from either level.

Earlier Comments:
I do see potential resistance at the $24.00 level and the $26.75-27.00 zone. Yet the Point & Figure chart for CSX is bullish with a $33.50 target.

- Suggested Positions -
NOV 14, 2011 - entry price on CSX @ 22.59, option @ 2.24
symbol: CSX1319A25 2013 JAN $25 call - current bid/ask $ 1.94/ 2.01

- or -

NOV 14, 2011 - entry price on CSX @ 22.59, option @ 3.30
symbol: CSX1418A25 2014 JAN $25 call - current bid/ask $ 2.72/ 3.00

Current Target: $29.75
Current Stop loss: 19.75
Play Entered on: 11/14/11
Originally listed in the New Plays 11/12/11


EMC Corp. - EMC - close: 23.07

Comments:
11/19 update: EMC plunged lower last this past week. Thursday's market wide drop was bad enough but EMC's decline was exacerbated by a bearish earnings report from rival NTAP. EMC gapped down on Thursday and temporarily traded under support near $23.00 and its 50-dma. Shares underperformed again on Friday with a slide back to this level.

Currently we have a stop loss at $22.20. If the market continues to breakdown then I would expect EMC to stop us out. On the other hand this pull back to support might end up being a new entry point. Traders might want to consider buying calls again if EMC and the S&P 500 open positive on Monday morning.

Earlier Comments:
The plan was to use small positions to limit our risk.

- Suggested (SMALL) Positions -
(Remaining positions)
Aug 18, 2011 - entry price on EMC @ 20.25, option @ 1.80
symbol: EMC1319A25 2013 JAN $25 call - current bid/ask $ 2.60/ 2.67

11/19/11 EMC has fallen back to support near $23.00 and its 50-dma. A bounce here could be a new bullish entry point.
10/31/11 scheduled exit. EMC gapped down at $24.47. The 2012 $20 call opened at $4.65 (+111.3%). We also had plans to sell half of our 2013 $25 calls, which opened at $3.02 (+67.7%)
10/29/11 Plan to sell the rest of our 2012 Jan $20 calls on Monday at the open. Also plan to sell half of our 2013 Jan $25 calls on Monday at the open.
10/29/11 new stop loss @ 22.20
10/22/11 new stop loss @ 21.40
10/17/11 sold half of 2012 calls @ open, bid $3.55 (+61.3%)
10/15/11 Plan to Sell Half of our 2012 calls ASAP
10/08/11 new stop loss @ 19.85
09/24 new stop loss @ 19.49
09/17 new stop loss @ 19.80

Current Target: final target for 2013 calls @ $27.50
Current Stop loss: 22.20
Play Entered on: 08/18/11
Originally listed on the Watch List: 07/23/11


Corning Inc. - GLW - close: 15.00

Comments:
11/19 update: GLW is holding up reasonably well. The stock only lost 19 cents for the week. This past week saw more articles discussing how cheap GLW is on a valuation basis. With a P/E of 7 this stock could definitely appeal to the value investor.

I would look for another dip or a bounce out of the $14.50 area as a new entry point.

- Suggested Positions -
OCT 25, 2011 - entry price on GLW @ 14.27, option @ 2.05
symbol: GLW1319A15 2013 JAN $15 call - current bid/ask $2.68/2.73

Current Target: $18.00
Current Stop loss: 12.85
Play Entered on: 10/25/11
Originally listed on the Watch List: 10/22/11


Hewlett-Packard - HPQ - close: 27.99

Comments:
11/19 update: HPQ was one of the few stocks to post a gain for the week although shares are still struggling with overhead technical resistance at the descending 100-dma.

Investors have a decision to make. Do you take profits now with our 2013 Jan. $25 call up +76% or do you hold on and ride out what could be a volatile week?

HPQ is due to report earnings on Monday (Nov. 21st) after the closing bell. Wall Street is expecting a profit of $1.13 a share. I suspect this report could be negative. It is the first quarterly report with the new CEO Meg Whitman at the helm. This is her chance to clean house and toss all the garbage into this earnings report and blame it on her predecessor. If HPQ reports a big miss we could see shares plunge back to $25.00 or worse! Currently we have a stop loss at $23.90.

I am not suggesting new positions at this time.

- Suggested (SMALL) Positions -
Longer-term Trade
Sep 26, 2011 - entry price on HPQ @ 22.59, option @ 3.75
symbol: HPQ1319A25 2013 JAN $25 call - current bid/ask $ 6.60/ 6.70
Stop Loss @ 23.90

11/19/11 Readers need to decide: Take profits now (+76%) or hold on and expect some volatility following HPQ's earnings report on Nov. 21st
10/31/11 scheduled exit for the remainder of our 2012 calls @ the open. Options opened at $5.40 (+100%), plus we sold half of our 2013 $25 calls, which opened at $5.70 (+52%).
10/29/11 new stop loss on 2013 calls at $23.90
10/29/11 prepare to exit remainder of 2012 position on Monday @ open
prepare to sell 1/2 (half) of 2013 position on Monday at open
10/17/11 Planned exit, sell 1/2 of 2012 position, bid @ 4.10 (+52.4%)
10/15/11 new stop loss for the 2012 position @ 22.85
10/15/11 Plan to sell 1/2 of 2012 calls on Monday
10/08/11 new stop loss (both positions) at $21.40

Current Target: 2013 call target: 32.50
Play Entered on: 09/26/11
Originally listed in New Plays: 09/24/11


Hershey Co. - HSY - close: 56.38

Comments:
11/19 update: I am concerned about our HSY trade. Shares spent most of the week bouncing sideways in the $56.00-57.00 zone along with its simple 200-dma and exponential 200-dma as technical support. There was s spike lower on Nov. 14th down to $55.64. We have a stop loss at $55.40. If the stock market continues to breakdown we could easily see HSY fall to new relative lows and stop us out. The short-term trend of lower highs doesn't bode well. I am not suggesting new positions at this time.

- Suggested (SMALL) Positions -
Oct 19, 2011 - entry price on HSY @ 60.57, option @ 3.90
symbol: HSY1319A65 2013 JAN $65 call - current bid/ask $ 1.75/ 2.02

10/29/11 adjust stop loss to $55.40, under 200-dma
10/27/11 reports earnings that are in-line with estimates
10/19/11 HSY opens at $60.57, option opens @ 3.90
10/18/11 HSY meets our entry requirement with a close over $60.25

Current Target: $67.00 & 74.00
Current Stop loss: 55.40
Play Entered on: 10/19/11
Originally listed on the Watch List: 09/17/11


Intel Corp. - INTC - close: 24.29

Comments:
11/19 update: I've got good news and I've got bad news Intel. The good news is that shares broke out to new three year highs early last week. Our plan was to buy calls when INTC closed over $25.25. Shares closed at $25.34 on November 15th. The stock gapped down at $25.13 the next morning. That was the start of a two-day market sell-off. Suddenly the rally early in the week looks like a potential bull trap and the decline back to $24.00 has put the bullish trend of higher lows in jeopardy. Fortunately the $24.00 level was prior resistance and should offer some support.

Personally, I'd rather see INTC close back above $25.00 again before considering new bullish positions. We do have a stop loss at $22.90. If the market sell off continues then nimble traders could try and open positions on a dip near the $23.25-23.00 zone instead.

Earlier Comments:
Our long-term target is $29.75 although I will point out that INTC has potential resistance in the $28-29 zone. FYI: The Point & Figure chart for INTC is bullish with a $35 target.

- Suggested Positions -
Nov 16, 2011 - entry price on INTC @ 25.13, option @ 1.08
symbol: INTC1319A30 2013 JAN $30 call - current bid/ask $ 0.93/ 0.97

- or -

Nov 16, 2011 - entry price on INTC @ 25.13, option @ 2.00
symbol: INTC1418A30 2014 JAN $30 call - current bid/ask $ 1.70/ 1.80

Chart of INTC:

Current Target: $29.75
Current Stop loss: 22.90
Play Entered on: 11/16/11
Originally listed on the Watch List: 11/12/11


JP Morgan Chase - JPM - close: 30.62

Comments:
11/19 update: Ouch! It was a rough week for the bank stocks. JPM fell -8%. The market's two-day sell off on Wednesday and Thursday pushed JPM under support near the $32.00 level. Investors remain very nervous about U.S. banks exposure to the EU debt problem. Fitch came out with a report last week reiterating everyone's fears about bank risk if the EU contagion spreads.

If the market sell-off continues we could see JPM hit our stop loss at $29.90 soon. However, if that happens readers may want to keep JPM on their watch list. I would be tempted to buy calls again on a dip or a bounce near the October lows near $28.00.

Earlier Comments:
I have been suggesting that readers take a very cautious approach to position size. Start small to limit our risk.

- Suggested Positions -
Nov 01, 2011 - entry price on JPM @ 32.47, option @ 2.38
symbol: JPM1319A40 2013 JAN $40 call - current bid/ask $ 2.05/ 2.10

11/19/11 If we get stopped out, consider buying calls on a dip near $28.00
11/12/11 remember to keep position size small.
11/05/11 new stop loss at $29.90

Current Target: $46
Current Stop loss: 29.90
Play Entered on: 11/01/11
Originally listed on the Watch List: 10/29/11


KB Home - KBH - close: 7.22

Comments:
11/19 update: Bullish data about housing starts and building permits did not helped the homebuilders last week. Shares of KBH produced a bearish reversal or failed rally pattern under resistance at $8.00 on Wednesday. More conservative traders might want to consider a higher stop loss. On a short-term basis I am expecting KBH to dip to the $7.00 level. If the market really sells off then look for a dip to the 50-dma instead. I am not suggesting new positions at this time but a strong bounce off $7.00 might change my mind.

Earlier Comments:
KBH can be a volatile stock. There is no need to chase it. If there is a breakout the stock could see a short squeeze. The most recent data listed short interest at 52% of the 65 million-share float.

- Suggested Positions -
(Stock Position)
Oct 19, 2011 - entry price on KBH @ 7.17

- or -

(Option Position)
Oct 19, 2011 - entry price on KBH @ 7.17, option @ 1.25
symbol: KBH1319A10 2013 JAN $10 call - current bid/ask $ 1.02/ 1.14

10/19/11 Trade opens. KBH opens @ 7.17, option @ 1.25
10/18/11 KBH meets our entry requirement with a close above $7.00

Current Target: $9.90
Current Stop loss: 5.95
Play Entered on: 10/19/11
Originally listed on the Watch List: 10/15/11


Kraft Foods Inc. - KFT - close: 34.77

Comments:
11/19 update: The market's widespread decline has pulled KFT back down toward technical support near its 50 and 100-dma. Unfortunately this move has produced a bearish engulfing candlestick pattern on the weekly chart. If the market continues lower I would look for KFT to drop toward the $34 level and its 200-dma.

I am not suggesting new positions at this time.

Earlier Comments:
NOTE: KFT is a very slow moving stock. It will take months to make any progress. Once a position is open readers may want to turn these into calendar spreads (a.k.a. vertical spreads).

- Suggested (SMALL) Positions -
Sep 22, 2011 - entry price on KFT @ 32.71, option @ 2.35
symbol: KFT1319A35 2013 JAN $35 call - current bid/ask $ 2.83/ 3.00

11/12/11 new stop loss @ 32.40

Current Target: $38.00
Current Stop loss: 32.40
Play Entered on: 09/22/11
Originally listed on the Watch List: 09/17/11


Kimberly-Clark Corp. - KMB - close: 70.10

Comments:
11/19 update: Right now investing in high-dividend stocks is a popular strategy. KMB just announced a 70-cent quarterly dividend a few days ago. This may have helped limit the stock's losses on the week to just a $1.00. I am still concerned that the trading action last week is technically bearish. If the market continues lower we could see KMB correct down toward the $68.00 area.

I would either wait for a dip or a bounce near $68.00 or a new close over $71.50 as our next entry point.

Earlier Comments:
KMB does have long-term resistance in the $73.00-73.50 area. Therefore we will only start with small (half-sized) positions. When KMB closes above $74.00 we'll reconsider adding new positions to this play. Our long-term target is $79.75 but we'll readjust it as the play progresses. The Point & Figure chart is currently suggesting a long-term target of $98.00. NOTE: KMB does not move very fast. Investors may want to try and maximize their returns by changing this into a vertical (a.k.a. calendar) spread.

- Suggested Positions -
(half sized position)
Nov 07, 2011 - entry price on KMB @ 69.50, option @ 2.05
symbol: KMB1319A75 2013 JAN $75 call - current bid/ask $ 2.40/ 2.60

Current Target: $79.75
Current Stop loss: 65.75
Play Entered on: 11/07/11
Originally listed in the New Plays 11/05/11


Limited Brands, Inc. - LTD - close: 40.86

Comments:
11/19 update: A better than expected earnings report from LTD was not enough to save the stock from the market's wide spread sell-off. Shares lost -7% on the week and broke down below its 50-dma.

On Nov. 16th the company reported earnings with a profit of 25 cents a share. That was a penny above estimates. Revenues did edge past expectations while guidance was in-line. With the stock trading near all-time highs I warned readers that LTD could see some profit taking. I am a little concerned that the weekly chart has produced a bearish engulfing candlestick pattern. I would wait for a bounce from the $40.00 level before considering new bullish positions.

Earlier Comments:
The plan was to keep our position size small

- Suggested (SMALL) Positions -
Oct 25, 2011 - entry price on LTD @ 43.70, option @ 4.25
symbol: LTD1319A50 2013 JAN $50 call - current bid/ask $ 2.85/ 3.10

11/16/11 LTD reports earnings one cent above estimates
10/25/11 trade begins when LTD opens at $43.70
10/24/11 closed at $43.79, meets our entry point requirement
10/15/11 New Strategy: buy a close over $43.50, stop 37.90
10/01/11 adjusted stop loss to $32.90, if triggered
09/24/11 new trigger @ 35.50, updated 2013 option strike
09/17/11 new trigger @ 37.50, updated option strikes.

Current Target: $54.00
Current Stop loss: 37.90
Play Entered on: 10/25/11
Originally listed on the Watch List: 08/27/11


Reynolds American Inc. - RAI - close: 40.11

Comments:
11/19 update: As the stock market turned lower investors naturally turned more defensive. High-dividend names started to show relative strength. Shares of RAI surged from support near $38.00 past resistance at $40.00. This is a new all-time high for the stock.

Our plan was to wait for a close over $40.00. RAI closed at $40.23 on Nov. 17th. Our trade was opened on Friday, Nov. 18th at $40.02. We have a stop loss at $37.85. Our long-term target is $49.00.

- Suggested Positions -
Nov 18, 2011 - entry price on RAI @ 40.02, option @ 2.00
symbol: RAI1319A42.5 2013 JAN $42.50 call - current bid/ask $ 1.80/ 2.05

Chart of RAI:

Current Target: $49.00
Current Stop loss: 37.85
Play Entered on: 11/18/11
Originally listed on the Watch List: 10/22/11


Red Hat Inc. - RHT - close: 49.04

Comments:
11/19 update: On Tuesday we saw RHT surge to new all-time highs above resistance at $52.00. Unfortunately the market reversed lower the next day and RHT is now down three days in a row. The stock's bullish trend of higher lows is in jeopardy. If the market continues lower then we should expect RHT to retest support near $48.00.

I am not suggesting new positions at this time. If the $48 level fails then RHT is probably headed for the 50-dma or the $45.00 level.

- Suggested Positions -
Nov 01, 2011 - entry price on RHT @ 47.70, option @ 4.75
symbol: RHT1319A60 2013 JAN $60 call - current bid/ask $ 4.70/ 5.40

11/12/11 new stop loss @ 44.75

Current Target: $59.75
Current Stop loss: 44.75
Play Entered on: 11/01/11

Originally listed on the Watch List: 10/29/11


Ross Stores Inc. - ROST - close: 86.10

Comments:
11/19 update: ROST also retreated from all-time highs. Shares had been flirting with a breakout past resistance near the $90 level. Yet the stock saw some profit taking following its earnings report on Nov. 17th. Earnings results were in-line with estimates at $1.26 (looks like estimated has been ratcheted up from the prior week of $1.22). In addition to its earnings report ROST announced a 2-for-1 stock split set for December 16th.

I remain bullish on the stock but I would rather wait for a dip or a bounce near the $84-83 zone before considering new positions.

- Suggested Positions -
Oct 11, 2011 - entry price on ROST @ 84.36, option @ 5.30
symbol: ROST1319A100 2013 JAN $100 call - current bid/ask $ 4.80/ 5.40

11/17/11 ROST reported earnings that were in-line and announced a 2-for-1 stock split set for Dec. 16th
11/12/11 Cautious investors may want to take profits early. Option has a bid of $6.70 (+26.4%)
11/05/11 new stop loss @ 81.75
10/22/11 new stop loss @ 79.25
10/15/11 adjusted stop loss to $77.00
10/11/11 ROST opened at $84.36
10/10/11 ROST closed above $83, our requirement to open the trade
10/08/11 adjusted option strike to 2013 Jan. $100 call
10/01/11 new strategy: buy a close over $83.00
09/24/11 new trigger at $73.00, stop 69.50
09/17/11 new trigger at $76.50, stop @ 71.40, new strikes.

Current Target: $99.00
Current Stop loss: 81.75
Play Entered on: 10/11/11
Originally listed on the Watch List: 09/10/11


U.S. Steel Corp. - X - close: 25.68

Comments:
11/19 update: Shares of X spent the week chopping sideways in a wide $2.50 range. You could argue that Thursday's move has produced a new lower high. If the market continues to drop I would expect X to fall toward the $25.00 or possibly the $24.00 level.

This is an aggressive trade because X can be volatile and we have a wide stop loss. That's why we're using small positions to limit our risk. I would wait for a strong bounce from $25 or $24 before considering new positions.

- Suggested (SMALL) Positions -
Nov 09, 2011 - entry price on X @ 25.50, option @ 5.00
symbol: X1319A30 2013 JAN $30 call - current bid/ask $ 4.95/ 5.20

11/09/11 Trade opened at $25.50 (small positions)

Current Target: $37.50
Current Stop loss: 21.40
Play Entered on: 11/09/11
Originally listed on the Watch List: 11/05/11


CLOSED Plays


CB Richard Ellis - CBG - close: 15.11

Comments:
11/19 update: We almost saw CBG hit our stop loss two weeks ago. This past week's market-wide sell-off ensured that CBG finally hit our stop closing the play at $15.75. November 15th saw CBG gap open at $15.77 and quickly hit our stop loss before rebounding back into positive territory. The bounce didn't hold. Shares are now flirting with a breakdown under $15.00 and its 50-dma.

The bid on our 2012 March calls was near $1.00.

NOTE: CBG does not have LEAPS. We are using the 2012 March calls.

- Suggested Positions -
OCT 25, 2011 - entry price on CBG @ 16.63, option @ 1.80
symbol: CBG1217C18 2012 MAR $18 call - exit $1.00 (-44.4%)

11/15/11 stopped out at $15.75
10/31 scheduled exit to sell half of our March calls.
exit $2.30 (+27.7%)
10/29 Plan on selling half at the open on Monday to lock in a gain.
new stop loss @ 15.75
adjusted final target from $20.00 to $21.50

Chart of CBG:

Current Target: $21.50
Current Stop loss: 15.75
Play Entered on: 10/25/11
Originally listed on the Watch List: 10/15/11