Option Investor
Play Updates

Updates On Latest Picks

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Long Play Updates

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Short Play Updates

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Closed Long Plays

American Express - AXP - close: 23.15 change: -0.85 stop: 20.90

The market sell-off on Friday was worse than expected. Shares of AXP gapped open lower at $22.47 and dove to $20.50 intraday before bouncing back. Volume was almost three times the norm. We suggested readers buy AXP at $21.65 with a stop loss at $20.90 so we would have quickly been stopped out soon after opening the play. Looking back we could have set a stop loss under round-number support at $20.00 but we didn't want to take the extra risk.

Picked on October 10 at $21.65 /stopped out 20.90
Change since picked: + 1.50
Earnings Date 10/20/08 (unconfirmed)
Average Daily Volume: 16 million

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Home Depot - HD - close: 19.75 change: -0.18 stop: 18.75

HD also suffered from extreme volatility on Friday. The stock was so volatile that it took the decision making process to open the play out of our hands and ended it before the play even opened. Let me explain. We were suggesting readers buy HD on a dip to $19.25 with a stop at $18.75. HD gapped open at $18.70 before falling to $17.05. HD gapped open under our stop loss so the play would have never opened.

Picked on October xx at $xx.xx <-- Gapped open under stop
Change since picked: + 0.00
Earnings Date 11/18/08 (unconfirmed)
Average Daily Volume: 24 million

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Merck - MRK - close: 26.23 change: +0.02 stop: 24.90

MRK also suffered some big moves on Friday. The stock traded in a $23.64-28.32 range. We were suggesting readers buy a dip at $25.65 with a stop loss at $24.90. The stock actually gapped open at $25.26 and we were quickly stopped out.

Picked on October 10 at $25.26 *gap open lower/stopped 24.90
Change since picked: + 0.97
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 14 million

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Microsoft - MSFT - close: 21.50 change: -0.80 stop: 20.90

MSFT was hammered pretty hard intraday and under performed the rest of the NASDAQ. The stock gapped open at $21.79 and quickly fell past our trigger at $21.55 and then our stop at $20.90. The intraday low was $20.65. In hindsight we could have put the stop loss under round-number support at $20.00 but we didn't want to take the extra risk. We would keep an eye on MSFT. A dip into the $20.00-19.00 zone might be another entry point!

Picked on October 10 at $21.55 /triggered/stopped @ 20.90
Change since picked: - 0.05
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 79 million
 

Closed Short Plays

Starbucks - SBUX - close: 11.08 change: +0.07 stop: 12.55

Target achieved. SBUX gapped down on Friday morning at $10.31 and slipped to $10.00 before bouncing back. Our secondary target had just been adjusted from $10.25 to $10.55 on Thursday night. The $10.00 level could be strong, psychological support and nimble traders might want to consider buying another dip near $10.00 but use a relatively tight stop loss.

Picked on October 05 at $13.66 /1st target hit $12.05
Change since picked: - 2.58 /2nd target hit 10.31 gap down
Earnings Date 11/10/08 (unconfirmed)
Average Daily Volume: 12.2 million
 

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