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Call Updates

Alliance Resource - ARLP - cls: 78.25 chg: +2.03 stop: 71.95*new*

Coal stocks are on the run again, well at least ARLP and FDG. Shares of ARLP added another 2.66 percent to out perform the market again. The stock is nearing our initial target at $80.00. Our secondary longer-term target is still $85. Short-term players can prepare to exit. We are raising our stop loss to $71.95.


 

Picked on February 27 at $ 75.01
Change since picked: + 3.24
Earnings Date 01/27/05 (confirmed)
Average Daily Volume = 95 thousand

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Fording Candn Coal - FDG - cls: 96.05 chg: +4.35 stop: 89.99*new*

Target achieved! FDG soared for a 4.7 percent gain today with volume coming in above average as traders bought this morning's dip toward the $90.00 level. Our initial target was a move into the $96.00-98.00 range. Normally we would close the play here and readers should strongly consider doing so as the option values have soared. The April 85s have climbed from $7.20 to $12.30. The April 90s from $3.80 to $8.00. The April 95s from $2.15 to $4.20. We are going to keep the play open another day or two to see if FDG can trade near the $98.00 level. Actually, we will close the play if FDG trades at $97.90. The rally is being fueled by yesterday's news that FDG is going to pay a $1.30 cash dividend on April 15th and today's news that the company is going to ask shareholders to approve a 3-for-1 stock split in May. We are going to raise our stop to $89.99.


 

Picked on February 27 at $ 90.43
Change since picked: + 5.62
Earnings Date 02/05/05 (confirmed)
Average Daily Volume = 326 thousand

Put Updates

None today.

Dropped Calls

Chicago Merc. Exchg - CME - cls: 199.00 chg: -21.00 stop: 206.00

Wow! Talk about your reversal of fortunes. One analyst firm cut its rating on CME from a "buy" to a "hold" on valuation concerns and the stock plummeted. Shares gapped lower to open at $212.75 and they crashed through technical support at the 100-dma and round-number, psychological support at the $200.00 mark. This is a very bad reversal and the MACD already reflects a new sell signal. Volume was huge at close to five times the average. Our trigger to buy calls was at $221.01 and thankfully it was not hit. Thus we are closing this play unopened. Aggressive traders may want to follow CME as shares may retrace back toward the $185-180 region.


 

Picked on March xx at $xxx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/01/05 (confirmed)
Average Daily Volume = 817 thousand

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