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Call Updates

Avalonbay - AVB - close: 74.22 change: +0.07 stop: 71.99*new*

AVB continues to show relative strength with another gain today albeit a small one. No change from our previous update on 05/08/05. We are preparing to exit in the $75-76 range. More conservative traders can exit early at current levels. We are raising the stop loss to $71.99. If you're feeling cautious consider a stop loss under the simple 10-dma near $72.50.

Picked on April 24 at $ 70.05
Change since picked: + 4.17
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 345 thousand

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Chubb Corp - CB - close: 82.65 chg: -1.40 stop: 79.49

Insurance stocks were hit pretty hard today lead by another decline from Dow-component AIG. Shares of CB lost 1.66 percent but remain above the $82 level near its 10-dma, which could act as short-term support. We see no change from our previous update on 05/08/05.

Picked on May 01 at $ 81.78
Change since picked: + 0.87
Earnings Date 04/25/05 (confirmed)
Average Daily Volume = 1.2 million

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Coventry Hlth Care - CVH - close: 68.73 chg: -0.88 stop: 66.99

We are still on the sidelines waiting for CVH to breakout over resistance at the $70.00 mark. Our entry point to go long is at $70.51. However, if the major market indices are trending lower then traders may not want to initiate new bullish positions even if CVH trades to our trigger.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 973 thousand

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Golden West Fincl - GDW - close: 63.22 chg: -1.33 stop: 60.95

The action in the banking sector does not look healthy today. Tuesday's market decline lead GDW to a two-percent loss. GDW's short-term oscillators do not look healthy either. We are not suggesting new bullish plays. More conservative traders may want to exit early to avoid any losses.

Picked on April 26 at $ 62.55
Change since picked: + 0.67
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 1.3 million

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Hovnanian - HOV - close: 53.42 chg: -0.79 stop: 49.99

After a multi-day run up the housing sector finally hit some profit taking and HOV was not immune. The stock lost 1.45 percent. We would watch for a pull back toward the $52.00-52.50 region and then look for a bounce as a new bullish entry point.

Picked on May 06 at $ 54.26
Change since picked: - 0.84
Earnings Date 03/02/05 (confirmed)
Average Daily Volume = 1.2 million

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Invitrogen - IVGN - close: 76.52 change: +0.20 stop: 71.49

We are a little bit disappointed that IVGN, while closing in the green on a down day, still under performed the BTK biotech index. The BTK was the only major sector index to close higher and it did so with a large two-percent gain. We remain bullish and see no change from our previous update on 05/08/05.

Picked on May 03 at $ 75.51
Change since picked: + 1.01
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 888 thousand

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Eli Lilly - LLY - close: 59.13 change: -0.63 stop: 57.49

We have been expecting LLY to pull back toward the $59 or $58 levels so today's decline is not a surprise. Readers can be patient and just wait to see where LLY bounces before considering new bullish positions.

Picked on May 04 at $ 60.15
Change since picked: - 1.02
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 4.7 million

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Reynolds American - RAI - cls: 78.82 chg: -0.30 stop: 77.95

We remain on the sidelines here. RAI lost ground today with the market's decline. Our entry point to go long is at $81.31.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand

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Research In Motion - RIMM - cls: 70.72 chg: +0.70 stop: 66.85

Ding! RIMM has hit our trigger to buy calls at $70.51. The stock also confirmed yesterday's breakout over the $70.00 level while also closing over its simple 50-dma. We're even more impressed with today's gains considering the weakness across the market. Fueling the move were comments from RIMM. The company said they plan to offer its Blackberry service in Africa, S. Asia, and the Middle East. Management also said the three millionth subscriber milestone was just the beginning and the company is projecting up to ten million subscribers. Remember this is a high-risk play and the risks are growing now that the NASDAQ is beginning to struggle under resistance near the 2000 level.

Picked on May 10 at $ 70.51
Change since picked: + 0.21
Earnings Date 04/05/05 (confirmed)
Average Daily Volume = 1.7 million
 

Put Updates

Lehman Brothers - LEH - close: 88.83 chg: -3.09 stop: 92.80

The volatility in shares of LEH continue. The stock has produced another reversal and this time it's bearish, which is of course a positive for us. The stock has fallen back under the $90.00 mark on volume well above average suggesting more weakness ahead. Readers can use this as a new bearish entry point. Our target remains the $86-85 range.

Picked on April 29 at $ 89.45
Change since picked: - 0.62
Earnings Date 03/15/05 (confirmed)
Average Daily Volume = 2.3 million

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Marriot - MAR - close: 61.65 chg: -1.00 stop: 64.21

MAR has produced a failed rally at its simple 10-dma and is now back under very short-term support near the $62.00 level. Our target is the $60.00-58.00 range.

Picked on April 28 at $ 63.37
Change since picked: - 1.72
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 1.2 million

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Parker Hannifin - PH - close: 59.06 change: -0.91 stop: 62.01

PH continues to sink following last week's failed rally at resistance. If you missed the entry point a couple of days ago today's decline looks like another entry point for new bearish plays. No change from previous update on 05/08/05.

Picked on April 28 at $ 59.08
Change since picked: - 0.02
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 1.2 million
 

Dropped Calls

Nucor - NUE - close: 53.65 chg: +0.13 stop: 49.95

We have run out of patience for NUE. The play was never opened as we waited for shares to breakout over resistance at the $55.00 level and its 100-dma. Today's decline of 4.9 percent was fueled by a downgrade from Keybanc from "aggressive buy" to a "buy" and a negative research report on steel from CSFB, who is worried about a soft patch for steel prices, especially in Europe.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/21/05 (confirmed)
Average Daily Volume = 3.3 million
 

Dropped Puts

None

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