Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

Coca-Cola - KO - close: 61.18 chg: +0.14 stop: 57.99

KO did see a dip today but bulls bought KO at $60.54. We would still expect a stronger dip near $60.00 and do not see any changes from our weekend comments. Traders could probably buy KO right here. However, after a five-day rally, we would rather buy a dip. We're suggesting readers buy KO in the $60.05-59.50 range. We'll suggest a stop loss at $57.99. Our target is the $64.50-65.00 range. The Point & Figure chart is bullish with a $90 target.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/17/08 (unconfirmed)
Average Daily Volume: 10.9 million

---

Microsoft - MSFT - close: 29.17 chg: -0.01 stop: 27.19

If you're a tech bull you're probably scratching your head in wonder at why shares of MSFT didn't move today. The NASDAQ soared 3% and yet MSFT lost a penny. We could not find anything specific to account for the relative weakness but we did notice that volume was very low today. Overall we remain bullish on MSFT but given today's performance you may want to try and buy a dip near $28.50 or its 10-dma near 28.75. Our suggested stop loss is at $27.19. If you want to be more aggressive put your stop under $27.00 and more conservative traders could try putting your stop around $28.25 but that maybe too close. There is potential resistance with some significant moving averages overhead. However, we are aiming for the $32.00-33.00 zone.

Picked on March 23 at $29.18
Change since picked: - 0.01
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 114 million

---

Meritage Homes - MTH - close: 18.90 chg: +0.86 stop: 15.90

This morning's better than expected housing data gave the markets a jolt higher and squeezed the shorts in the homebuilders. Shares of MTH spiked toward resistance near $20.00 before setting with a 4.7% gain. Today's move confirms the bullish breakout over the 200-dma, which is a good thing, but if you're patient you may want to try and buy a dip near $18.00 or $17.50 if we get the chance. We expect that the short squeeze will continue so MTH may not offer many dips. This remains an aggressive play. Our target is the $25.00-27.00 zone. The P&F chart is bullish with a $28 target. FYI: MTH is due to present at an analyst conference on March 26th.

Picked on March 24 at $18.60 *triggered
Change since picked: + 0.30
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 893 thousand

---

99 Cents Only Stores - NDN - cls: 10.90 chg: +0.14 stop: 9.49

Retail stocks continued to run on Monday. While we are short-term bullish for the group and NDN we don't want to chase them right here. We are suggesting readers wait for a dip into the $10.30-10.00 zone. We'll set the stop at $9.49 (more conservative traders could try one closer to $10.00 but that might be too tight). Our target is the $11.95-12.00 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/12/08 (unconfirmed)
Average Daily Volume: 2.0 million
 

Short Play Updates

Starbucks - SBUX - close: 17.89 chg: +0.36 stop: 18.55

SBUX looks like it wants to rebound higher but the trend is still bearish. Given the market's recent bullishness we would hesitate to open new shorts at this time. Our target on SBUX is the $15.05-15.00 zone. FYI: The most recent data puts short interest at 3.4% of the 703 million-share float, which is about 2 days worth of short interest.

Picked on March 07 at $17.49 *triggered
Change since picked: + 0.40
Earnings Date 04/30/08 (unconfirmed)
Average Daily Volume: 16.5 million

---

Safeway Inc. - SWY - close: 28.97 change: -0.01 stop: 30.26

SWY continues to under perform. The stock traded sideways and actually closed in the red today in spite of the market-wide rally. The trend is still bearish but wait for another failed rally before considering new shorts. There appears to be some support near $26.00 so we are suggesting a target in the $26.50-26.00 zone. The P&F chart is bearish with a $22.00 target. FYI: The latest data puts short interest at 3.9% of the 437 million-share float, which is about 4 days worth of short interest.

Picked on February 29 at $28.74
Change since picked: + 0.23
Earnings Date 02/21/08 (confirmed)
Average Daily Volume: 4.9 million
 

Closed Long Plays

None
 

Closed Short Plays

Akamai Tech - AKAM - close: 32.87 chg: +2.28 stop: 32.55

One analyst firm reiterated their out perform on AKAM and the news probably exacerbated today's short covering in tech stocks. The NASDAQ soared 3% and AKAM vaulted higher to a 7.4% gain. The stock has broken past its 05-dma and resistance near $32.00. Our stop loss was at $32.55. The long-term trend is still bearish but we would wait and watch to see if AKAM fails near its descending 200-dma before considering new shorts.

Picked on March 16 at $31.19 /stopped 32.55
Change since picked: + 1.68
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 5.8 million
 

Premier Investor Play Update Archives