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Call Updates

Amerada Hess - AHC - close: 92.73 chg: -0.40 stop: 89.95 

No change from our previous update on 05/25/05. Our target is the $93.50-94.00 range but more conservative traders may want to consider taking some profits now. 

Picked on May 17 at $ 89.41
Change since picked: + 3.32
Earnings Date 07/27/05 (unconfirmed)
Average Daily Volume = 1.6 million 


Amer. Intl Group - AIG - close: 55.71 chg: +1.63 stop: 52.49

Could this be a case of "buy" the news? Wall Street has been expecting NY Attorney General Spitzer to file suit against AIG for a while now and his office finally filed that suit today. Once the news hit shares of AIG broke out on big volume through resistance at the $55.00 level and hit our trigger to buy calls at $55.05. The lawsuit is a civil one against AIG and two if its former executives alleging fraud and deception. Today's reaction in the stock price seems to confirm our suspicions that the worst may be behind it for shares of AIG. Our target is the $59.00-60.00 range and we're suggesting the August calls.

Picked on May 26 at $ 55.05
Change since picked: + 0.66
Earnings Date 02/09/05 (confirmed)
Average Daily Volume = 15.5 million 


Caterpillar - CAT - close: 94.43 chg: +1.96 stop: 89.00

We've been expecting a dip toward the $90.00 level but we may have to consider the possibility that the market is going to keep growing more overbought. Today's rebound from the simple 10-dma near the $92.00 level looks like a bullish entry point but consider new positions carefully. Our target remains the $99.25-100.00 range.

Picked on May 18 at $ 92.35
Change since picked: + 2.08
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million 


Career Education - CECO - close: 35.00 chg: +0.61 stop: 32.45

Today's bounce looks like a potential new bullish entry point but we would be careful. The market is still short-term overbought and we'd prefer to wait for the major averages to dip before initiating new long positions. 

Picked on May 23 at $ 35.24
Change since picked: - 0.24
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million 


Rockwell Collins - COL - close: 49.26 chg: +0.52 stop: 44.95

Momentum traders may want to give COL another look here as it nears a new high. We're going to stick to our plan and look for a pull back toward the 100-dma. Our entry point to buy calls is in the $46.25-45.50 range. No change from our previous update on 05/24/05. 

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 800 thousand 


Federated Dept Stores - FD - cls: 67.88 chg: +0.55 stop: 64.45 

No change from our previous updates.

Picked on May 17 at $ 66.60
Change since picked: + 1.28
Earnings Date 05/11/05 (confirmed)
Average Daily Volume = 2.9 million 


Reynolds American - RAI - cls: 82.17 chg: +0.25 stop: 77.95

We're watching for a dip into the $80-81 range. Wait for a bounce before considering new positions. 

Picked on May 16 at $ 81.31
Change since picked: + 0.86
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand 


United Technologies - UTX - cls: 107.62 chg: +0.79 stop: 102.45

UTX continues to show relative strength with another late day bounce off from the $106.50 region. Momentum traders may want to initiate positions here. We'd still be prone to wait for the pull back as the major averages remain overbought and today's gains were on light volume for the market.

Picked on May 23 at $106.25
Change since picked: + 1.37
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million 

Put Updates

United Thera. - UTHR - close: 51.96 chg: +0.33 stop: 56.05

We were expecting an oversold bounce and shares managed to trade near the $52.50 level before momentum began to fade this afternoon. No change from our previous updates. Our target is the $48.25-47.50 range. 

Picked on May 24 at $ 53.38
Change since picked: - 1.42
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 452 thousand 

Dropped Calls


Dropped Puts

Precision Castparts - PCP - cls: 77.72 chg: +1.42 stop: 75.05

The breakdown below technical support at its simple 100-dma and price support near $72.00 never materialized for shares of PCP. We're going to close the play unopened. Per our previous update traders may actually want to consider going long calls on the stock now that shares are beginning to breakout over its three-month trend of lower highs. We'll keep an eye on it for a possible bullish play.

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 


Strayer Education - STRA - cls: 87.37 chg: +1.20 stop: 87.75

STRA was a new bearish candidate we added to the list last night. It would appear that our stop loss may have been too tight. Shares managed to trade to $87.87 on an intraday basis, which was enough to tag our stop loss at 87.75. We are not convinced that STRA will not trade lower as today's gains were fueled by below average volume. It may be prudent to watch for a breakdown below the $85.00 level before considering new bearish positions.

Picked on May 25 at $ 86.17
Change since picked: + 1.20
Earnings Date 01/26/05 (unconfirmed)
Average Daily Volume = 258 thousand 

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