Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

None
 

Short Play Updates

Avery Dennison - AVY - close: 46.26 change: +0.09 stop: 50.11 *new*

Target achieved! AVY dipped to $45.15 on Friday morning before bouncing back. Our first target was the $45.15-45.00 zone. Shares are oversold and due for a bounce so we're not suggesting new positions at this time. We are going to adjust our stop loss to $50.11. The market is way overdue for a big rebound. If you do not want to endure a rally in AVY back toward resistance near $50.00 then we suggest you exit early now or lower your stop loss even further. Our second, more aggressive target is the $42.50 mark. The P&F chart is bearish with a triple-bottom breakdown sell signal and a $40 target. FYI: The most recent short interest was listed at 3.2% of the 97.3 million-share float.

Picked on January 13 at $48.50
Change since picked: - 2.24
Earnings Date 01/29/08 (confirmed)
Average Daily Volume: 1.0 million

---

Clear Channel Comm. - CCU - cls: 33.55 chg: -0.60 stop: 35.05

CCU is finally starting to see some follow through lower. While the Thursday-Friday move looks like a new spot to consider shorts we are not suggesting new positions at this time. Our short-term target is the $32.15-32.00 range. The November 19, 2007 low was $32.02. The P&F chart is bearish with a $28 target. FYI: The most recent short interest data was 3.2% of the 429 million-share float.

Picked on January 13 at $34.47
Change since picked: - 0.92
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume: 8.0 million

---

Corning Inc. - GLW - cls: 22.20 change: +0.03 stop: 23.75

The trend in GLW is still bearish but we are not suggesting new positions at this time. Challenge for us as shorts here is where do we put our stop? If the market does see an oversold bounce soon it would be very easy for GLW to spike past its trendline of resistance (see chart). More cautious readers may want to consider a stop loss near $23.25. Our target is the $21.25-21.00 range. We do not want to hold over the late January earnings report. FYI: The P&F chart is bearish with a $15.00 target. There was virtually zero short interest listed for GLW, which reduces the risk of a short squeeze.

Picked on January 04 at $22.91 *triggered/gap down entry
Change since picked: - 0.71
Earnings Date 01/28/08 (confirmed)
Average Daily Volume: 11.7 million

---

The Hershey Co. - HSY - cls: 36.74 chg: -0.52 stop: 38.55 *new*

The bounce in HSY is already struggling. Shares lost about 1.4% on Friday in a small bearish engulfing candlestick pattern. Unfortunately, we are almost out of time. HSY has set its earnings date for the morning of January 24th. We do not want to hold over the report so we plan to exit on Wednesday afternoon at the closing bell. Our new stop loss is $38.55. Our target is the $35.15-35.00 range. FYI: The latest short interest data was about 3.8% of the 226 million-share float.

Picked on January 13 at $37.46
Change since picked: - 0.72
Earnings Date 01/24/08 (confirmed)
Average Daily Volume: 1.7 million

---

Pitney Bowes - PBI - cls: 34.11 chg: -0.37 stop: 36.51

PBI continues to sink and the stock lost another 1% on Friday. The $34.00 level is probably short-term support and considering the market's oversold condition we would expect a bounce. Readers may want to consider taking some money off the table right here. We are not suggesting new positions at this time. Our target is the $32.25-32.00 zone. FYI: The most recent data listed short interest at 2.2% of the 216 million-share float.

Picked on January 13 at $35.94
Change since picked: - 1.83
Earnings Date 02/07/08 (confirmed)
Average Daily Volume: 1.8 million
 

Closed Long Plays

Gilead Sciences - GILD - cls: 46.17 chg: -1.06 stop: 45.45

Biotech stocks really under performed the market on Friday. The BTK index lost 2.89%. Shares of GILD only lost 2.2% but the stock produced an intraday dip to $45.13 and breaking down past the 50-dma. Our stop loss was $45.45.

Picked on January 09 at $48.50
Change since picked: - 2.33
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume: 6.6 million

---

Parexel Intl. - PRXL - cls: 51.92 chg: -1.30 stop: 47.90

Unfortunately, we have run out of time with PRXL. The company is due to report earnings after the bell on January 23rd. We don't want to hold over the announcement so we're dropping it as a candidate. However, we would keep it on your watch list for a dip or bounce near $50 or $48.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/23/08 (confirmed)
Average Daily Volume: 202 thousand
 

Closed Short Plays

None
 

Premier Investor Play Update Archives