Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Long Play Updates

Air Methods - AIRM - close: 31.20 change: +1.31 stop: 28.49 *new*

AIRM continues to rally. The stock added another 4.3% by the closing bell. The simple 50-dma has fallen to $31.87 so we are adjusting our secondary target from $32.00 to $31.70. More conservative traders will want to seriously consider exiting right here! We're not suggesting new positions and we're moving our stop loss up to $28.49. AIRM has already exceeded our target at $29.95. We do not want to hold over the early August earnings report. FYI: AIRM has a high amount of short interest, almost 20% of the float according to the latest data. This raises the risk of another short squeeze, which would be great for the bulls.

Picked on July 16 at $27.52 /first target exceeded 29.95
Change since picked: + 3.68
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 276 thousand

---

Pacer Intl. - PACR - close: 24.99 change: +0.62 stop: 22.95 *new*

PACR rallied to another new relative high. We are raising our stop loss to $22.95. More conservative traders may want to take some money off the table right here. Our target is the $25.85 mark. We do not want to hold over the early August earnings report. FYI: PACR also has a high amount of short interest around 19% of the float. We could be seeing a shorts squeeze.

Picked on July 16 at $22.71
Change since picked: + 2.28
Earnings Date 08/05/08 (confirmed)
Average Daily Volume: 531 thousand

---

Sanofi-Aventis - SNY - cls: 37.00 change: +1.25 stop: 34.95

Biotech stocks were a bright spot in the market today and SNY out performed its peers with a 3.5% gain. The stock hit our trigger to buy it at $36.55 so the play is now open. The breakout over its 100-dma is bullish. Our short-term target is $39.50. We don't have a lot of time. Our plan is to exit ahead of the July 31st earnings report.

Picked on July 22 at $36.55 *triggered
Change since picked: + 0.00
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 1.7 million
 

Short Play Updates

Genoptix - GXDX - close: 29.29 change: +1.04 stop: 30.75

Strength in the biotechs and a widespread market rally on Tuesday afternoon fueled some gains for GXDX. The stock closed up more than 3% but it remains under the four-week trend of lower highs. We don't have a lot of time left. GXDX reports earnings on July 31st and we plan to exit before the announcement. Watch for the bounce to roll over under $30.00 as a new entry point for shorts. Our stop is a little wider than we'd like and this is an aggressive play because GXDX does not have a lot of volume, which makes it more susceptible to volatile movement. Plus, biotechs tend to be more aggressive plays in general. Investors are always at risk for a negative or positive headline about the latest clinical trial or FDA decision that could send the stock gapping open. We have two targets. Our first target is $25.50. Our second target is $22.75.

FYI: It has come to my attention that borrowing shares of GXDX to short may be a challenge!

Picked on July 20 at $28.06
Change since picked: + 1.23
Earnings Date 07/31/08 (confirmed)
Average Daily Volume: 146 thousand

---

Infosys - INFY - close: 39.24 change: +1.76 stop: 40.05

INFY turned in a very big bounce today. The stock added more than 4% and reversed its recent losses. INFY is now challenging short-term technical resistance at its 10-dma. More conservative traders may want to consider an early exit if INFY trades over $39.50, which isn't very far away. Wait for a new failed rally under $40 before considering new positions. Our target is the $35.25-35.00 zone. FYI: The P&F chart is bearish with a $34 target.

Picked on July 20 at $38.42
Change since picked: + 0.82
Earnings Date 07/11/08 (confirmed)
Average Daily Volume: 3.6 million
 

Closed Long Plays

Masimo Corp. - MASI - close: 35.83 chg: -0.34 stop: 34.75

It is time to cut MASI loose. The stock did not participate in the late afternoon market rally. Instead shares have broken the short-term bullish trendline of higher lows. Traders bought the initial dip to $35.00 (actually 34.90) but the bounce was struggling. We're suggesting an early exit immediately.

Picked on July 09 at $35.65 */exiting early 35.83
Change since picked: + 0.18
Earnings Date 08/04/08 (confirmed)
Average Daily Volume: 461 thousand

---

Ultra Financials - UYG - close: 22.60 change: +2.18 stop: 17.30

Target exceeded. The afternoon strength in the financials was exacerbated in the UYG. This ETF surged more than 10% and hit an intraday high of $22.90. Our target to exit was $22.50.

Picked on July 16 at $17.30 /target exceeded 22.50 (22.90)
Change since picked: + 5.30
Earnings Date 00/00/00
Average Daily Volume: 28 million
 

Closed Short Plays

None
 

Premier Investor Play Update Archives