Option Investor
Play Updates

In Play Updates and Reviews

Printer friendly version

Call Updates

Amerada Hess - AHC - close: 91.31 chg: +2.23 stop: 86.25

Energy-related stocks managed to rally anyway despite another decline in crude oil prices on Thursday. The sector's strength is partially due to yet another broad-market rally and an analyst comment suggesting the recent dip in energy stocks is a buying opportunity. The move over the $90.00 level in shares of AHC does look like a bullish entry point. Our short-term target is the $94-95 range.

Picked on May 17 at $ 89.41
Change since picked: + 1.90
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 1.6 million 


Caterpillar - CAT - close: 93.50 chg: -0.02 stop: 89.00

Thursday was a neutral session for shares of CAT. Now that the Dow is up four days in a row we would look for a dip. Readers can watch CAT for a dip toward the $92 level as a bullish entry point. 

Picked on May 18 at $ 92.35
Change since picked: + 1.15
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million 


Federated Dept Stores - FD - cls: 68.94 chg: +1.00 stop: 64.45*new*

Another round of positive earnings results in the retail sector and some positive comments from an analyst helped boost FD to yet another new high. Volume continues to come in above average. Shares are nearing our target and what could be round-number resistance at the $70.00 level. More conservative traders may want to plan an early exit in the $69.50-70.00 range. We will plan to exit if FD trades in the $69.95-70.00 range. The stock is short-term overbought and we're not suggesting new positions. We are raising the stop loss to $64.45.

Picked on May 17 at $ 66.60
Change since picked: + 2.34
Earnings Date 05/11/05 (confirmed)
Average Daily Volume = 2.9 million 


Hovnanian - HOV - close: 57.09 chg: +0.64 stop: 52.49 

No change from our previous update on 05/18/05. Our target is the $59-60 range. 

Picked on May 06 at $ 54.26
Change since picked: + 2.83
Earnings Date 05/31/05 (confirmed)
Average Daily Volume = 1.2 million 


Invitrogen - IVGN - close: 79.68 change: +1.08 stop: 74.85 

IVGN came within three cents of hitting our target at the $80.00 mark today. We hope some of the more conservative readers out there took our suggestion yesterday to exit early as IVGN approached the $80.00 level at what could become round-number resistance. We are not suggesting new bullish positions as we plan to exit once IVGN hits our target. Consider the following, the markets are up strongly over the last few days and IVGN is also looking overbought now up five weeks in a row. We are probably going to exit this play tomorrow at Friday's close even if IVGN does not hit our $80.00 target. 

Picked on May 03 at $ 75.51
Change since picked: + 4.17
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 888 thousand 


Eli Lilly - LLY - close: 59.94 change: -0.42 stop: 57.99 

The DRG drug index was one of the few sector indices that did not close positive on Thursday. This weighed on shares of LLY, which closed under the $60.00 level. However, as we suggested on Wednesday, LLY dipped just low enough on Thursday to fill the gap from Wednesday morning and the stock was rebounding by the late afternoon. We would still consider bullish positions if LLY trades over $60.00. More conservative traders may want to wait for a new relative high over $60.90 or 61.00 before considering new positions.

Picked on May 04 at $ 60.15
Change since picked: - 0.21
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 4.7 million 


Reynolds American - RAI - cls: 82.70 chg: +0.09 stop: 77.95

No change from our previous updates. Our target is the $85-86 range. 

Picked on May 16 at $ 81.31
Change since picked: + 1.39
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand 

Put Updates

L-3 Comm. - LLL - close: 68.13 chg: -0.46 stop: 69.55 

Shares of Titan (TTN) rose strongly today on news that the company might be purchased LLL. The fact that LLL only lost 46 cents today seems to confirm some analysts' thoughts that the market will bless any such deal and both companies' stocks could rise if an acquisition is announced. This raises the risk for bears and traders should keep this in mind. LLL is still under technical resistance but we're not suggesting new put plays here.

Picked on May 10 at $ 68.01
Change since picked: + 0.12
Earnings Date 04/26/05 (confirmed)
Average Daily Volume = 855 thousand 


MGIC Invest. - MTG - close: 59.98 change: -0.09 stop: 61.11

No change from our previous update on 05/18/05. We're encouraged that resistance seems to be holding at the top of MTG's declining channel.

Picked on May 15 at $ 58.91
Change since picked: + 1.07
Earnings Date 04/14/05 (confirmed)
Average Daily Volume = 742 thousand 


Precision Castparts - PCP - cls: 75.03 chg: -0.13 stop: 75.05

No change from our previous update on 05/15/05. We are waiting for PCP to breakdown below support near $72.00 and hit our entry point at $71.95. 

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: - 0.00
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 492 thousand 


Parker Hannifin - PH - close: 60.38 change: -0.10 stop: 62.01

No change from our previous update on 05/18/05.

Picked on April 28 at $ 59.08
Change since picked: + 1.30
Earnings Date 04/18/05 (confirmed)
Average Daily Volume = 1.2 million 

Dropped Calls


Dropped Puts


Play Update Archives