Option Investor
Play Updates

In Play Updates and Reviews

Printer friendly version

Long Play Updates

Bill Barrett - BBG - close: 60.29 chg: +0.88 stop: see details

BBG has recovered from the Monday afternoon swoon. Today's rebound back above $60.00 looks like another entry point for bullish positions. Volume was above average on today's rally, which is bullish. Our target is $64.85. We're contemplating a secondary target closer to $70. The P&F chart is bullish with a $67 target.

Picked on June 30 at $60.10 *triggered
Change since picked: + 0.19
Earnings Date 08/05/08 (unconfirmed)
Average Daily Volume: 758 thousand


E*trade Financial - ETFC - close: 3.19 change: +0.05 stop: 2.99

Bulls bought the dip again, this time at $3.06, and ETFC ended with a 1.5% gain. We warned readers last night to expect a dip. Our short-term target is the $3.45 mark. This should be considered an aggressive, higher-risk play since we're effectively calling a short-term bottom and as we all know "calling bottoms" in the market or stocks can be hazardous.
FYI: Just because this is a low-dollar stock do not be tempted to increase the amount of capital you normally commit to a single trade.

Picked on June 29 at $ 3.10
Change since picked: + 0.09
Earnings Date 07/22/08 (confirmed)
Average Daily Volume: 17.4 million


FLIR Sys. - FLIR - close: 43.08 change: +2.51 stop: 38.95 *new*

It was a good day for FLIR. The company announced a new $49.8 million Navy contract. Plus, the stock was upgraded this morning and given a $54 price target. FLIR hit $44.46 at its intraday high and closed with a 6.19% gain. We are raising the stop loss to $38.95. The morning move was probably a short squeeze. The stock did have a high amount of short interest but volume over the last few days may suggest a lot of the bears have covered. Our target is the $44.95 mark. The P&F chart points to a $73 target.

Picked on June 29 at $41.38
Change since picked: + 1.70
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume: 2.2 million


Masimo Corp. - MASI - close: 34.42 chg: +0.07 stop: 32.95

We are still sitting on the sidelines waiting for a move in MASI. The MACD is nearing a new buy signal. The P&F chart is already positive with a $56 target. If MASI can trade over $36.00 it will produce a new P&F triple-top breakout buy signal. We are suggesting that readers use a trigger to buy MASI at $35.65, which would be above the May peak. More aggressive traders might want to jump the gun early on a move over $35.10. If triggered at $35.65 our target is the $39.95 mark. More aggressive traders could aim for the highs near $42.00 but we do not want to hold over the late July earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/28/08 (unconfirmed)
Average Daily Volume: 461 thousand


Companhia Siderurgica Nac. - SID - cls: 42.73 chg: -1.68 stop: 40.99

A sell-off in the Brazilian markets hit SID for a 3.7% decline. We were expecting a dip but not one that dip. Traders bought the dip near its rising 100-dma, which has been support in the past. We would use the pull back as a new entry point for bullish positions. However, more conservative traders may want to wait for a new move over today's high around $43.60 before initiating positions. Keep a tight stop loss! We have two targets. our first target is the $45.95 mark. Our secondary target is the $49.50-50.00 zone.

Picked on June 26 at $42.75 *triggered
Change since picked: - 0.02
Earnings Date 08/04/08 (unconfirmed)
Average Daily Volume: 3.3 million


Steel Dynamics - STLD - close: 38.09 change: -0.98 stop: 36.95

Ouch! Many of the steel stocks were hammered lower today. It could be window "undressing" now that the new quarter has begun. Shares of STLD lost 2.5%, which was a lot better than some of its peers. Traders bought the dip near $37.00 and its rising 50-dma. We would wait for a new rise over $39.75 or $40.00 before considering new positions. Our target is the $44.00-45.00 range. We do not want to hold over the July earnings report. The P&F chart is bullish with a $50 target.

Picked on June 17 at $40.17 *triggered/gap open entry
Change since picked: - 2.08
Earnings Date 07/21/08 (confirmed)
Average Daily Volume: 4.6 million


AT&T - T - close: 33.30 change: -0.39 stop: 32.49

Today's decline does not confirm yesterday's bullish reversal pattern. That should raise the caution flag for investors. However, the intraday action in T looks like it still wants to trade higher. You may want to wait for a move over today's high (33.58) or wait for a move over yesterday's high (33.84) before initiating positions. Our target is the $36.00-36.50 zone. This is a high-risk play as we speculate on a short-term bottom on T.

Picked on June 30 at $33.69
Change since picked: - 0.39
Earnings Date 07/23/08 (unconfirmed)
Average Daily Volume: 24.4 million


TBS Intl. - TBSI - close: 37.84 change: -2.11 stop: 35.75

Most of the shipping stocks got punished today. Shares of TBSI lost 5.3% following its two-day rebound. The stock has not yet violated its bullish and rising trendline of support. Thus we would use this dip as a new entry point for long positions. We have two targets. Our first target is $42.50. Our second target is $44.90.

Picked on June 25 at $38.09
Change since picked: - 0.25
Earnings Date 04/04/08 (unconfirmed)
Average Daily Volume: 1.0 million


Union Drilling - UDRL - close: 21.25 chg: -0.43 stop: 20.65

Hmm.... UDRL under performed the OSX oil services index today. We didn't see any specific news that might account for the relative weakness. We did suggest readers look for a dip to open new plays. Today's dip was a pull back toward last week's lows.
If you are feeling cautious then consider waiting for a new move over $21.50 before initiating new long positions. We're suggesting a tight stop loss at $20.65. Our target is the $23.90 mark. We do not want to hold over the late July earnings report. FYI: The P&F chart is bullish with a $30 target.

Picked on June 29 at $21.74
Change since picked: - 0.49
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume: 187 thousand

Short Play Updates


Closed Long Plays

UltraShort SmallCap - SDD - cls: 76.35 chg: +0.04 stop: 69.90

Close enough! The morning market weakness pushed the small cap index lower and the SDD rallied to $79.38. Our secondary, upside target was $79.50. We can't claim another win but SDD has already surpassed our first target at $74.90. We are suggesting readers exit because it looks like the market may have produced a short-term bottom and thus the SDD has painted a bearish reversal pattern.

Picked on June 25 at $71.21 *1st target achieved
Change since picked: + 5.14
Earnings Date 00/00/00
Average Daily Volume: 63 thousand


Smurfit-Stone - SSCC - cls: 3.89 chg: -0.18 stop: 3.84

We tried to pick the bottom in SSCC and failed. Shares of SSCC had pulled back to its multi-month trendline of support but that wasn't enough. Shares slipped to $3.68 intraday. Our stop loss was at $3.84. It did not help that Fitch reaffirmed their negative guidance on SSCC.

Picked on June 30 at $ 4.07
Change since picked: - 0.18
Earnings Date 07/28/08 (unconfirmed)
Average Daily Volume: 6.3 million

Closed Short Plays


Premier Investor Play Update Archives