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Call Updates

Amer. Intl Group - AIG - close: 56.10 chg: +0.67 stop: 52.49

We are encouraged to see today's market rally help AIG turnaround. Yesterday's candle looked like a bearish reversal. Given the strength in the DJIA readers may want to consider new bullish positions here although we'd still prefer to buy a bounce after a dip toward the $54.50-55.00 region. Our target is the $59.00-60.00 range.

Picked on May 26 at $ 55.05
Change since picked: + 1.17
Earnings Date 02/09/05 (confirmed)
Average Daily Volume = 15.5 million

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Caterpillar - CAT - close: 95.47 chg: +1.36 stop: 89.99 *new*

CAT turned in a strong performance today. The move was partially fueled by positive comments from a Merrill Lynch analyst. The analyst was quoted as saying positive construction spending trends in April suggest a bullish forecast for CAT. The analyst reiterated his $115 stock price on CAT. The move helped push CAT through resistance in the $95 region. This looks like another momentum entry point. Our target is the $99.25-100.00 range. We are raising the stop loss to $89.99.

Picked on May 18 at $ 92.35
Change since picked: + 3.12
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.8 million

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Career Education - CECO - close: 35.29 chg: +0.62 stop: 32.45

The market rally is lending strength to shares of CECO. Now after five days of consolidating sideways it looks like CECO is poised to breakout over its 100-dma. We would consider new bullish positions here although more conservative traders might want to wait for CECO to trade above the $35.50 level first. Our target is the $38.50-39.00 range.

Picked on May 23 at $ 35.24
Change since picked: + 0.05
Earnings Date 05/02/05 (confirmed)
Average Daily Volume = 2.5 million

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Rockwell Collins - COL - close: 49.53 chg: +0.14 stop: 44.95

This could become a real test of patience. We were expecting a deeper pull back in the markets but it may not occur. That might leave our suggested entry point near the rising 100-dma a little too distant. We're not changing our strategy just yet but we're going to keep an eye on the $47.50-48.00 region as a potential alternative entry point to buy calls. Currently our plan is to buy calls on a dip into the $46.25-45.50 range.

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

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Federated Dept Stores - FD - cls: 67.70 chg: +0.25 stop: 64.45

No change from our previous update on 05/29/05. Our target is the $69.50-70.00 range.

Picked on May 17 at $ 66.60
Change since picked: + 1.10
Earnings Date 05/11/05 (confirmed)
Average Daily Volume = 2.9 million

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Reynolds American - RAI - cls: 82.61 chg: -0.30 stop: 77.95

No change from our previous update on 05/29/05. Today's late day bounce almost looks like a new bullish entry point but we would be careful here.

Picked on May 16 at $ 81.31
Change since picked: + 1.30
Earnings Date 04/27/05 (confirmed)
Average Daily Volume = 866 thousand

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United Technologies - UTX - cls: 107.49 chg: +0.79 stop: 102.45

A strong rally for the DJIA helped push UTX back toward short-term resistance at the $108 level. While we'd prefer to buy a bounce from a dip toward the $105 region traders might want to consider a momentum-type entry point on a move over the $108.00 level. Our target is the $114.00-115.00 range.

Picked on May 23 at $106.25
Change since picked: + 1.24
Earnings Date 04/20/05 (confirmed)
Average Daily Volume = 2.0 million
 

Put Updates

MedcoHealth Sol. - MHS - close: 50.71 change: +0.71 stop: 52.21

This morning's dip under the $50.00 level was enough to trigger our play at $49.90. Unfortunately, shares of MHS rebounded very rapidly with the broader market in rally mode. Thus far the bounce has failed near the $51.00 level and its broken 50-dma but we would be hesitant to consider new bearish positions here. Instead we would wait to see MHS trade under today's low at $49.50 before considering bearish positions. If the market continues to rally we could easily be stopped out before the end of the week.

Picked on June 01 at $ 49.90
Change since picked: + 0.81
Earnings Date 07/26/05 (unconfirmed)
Average Daily Volume = 2.0 million

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United Thera. - UTHR - close: 50.31 chg: +0.35 stop: 53.38

The market rally today also pushed shares of UTHR higher but it looks like the rally stalled near UTHR's gap down. More specifically the rally struggled near the bottom of UTHR's gap down three days ago. Given the strength in today's market we're still suggesting that more conservative traders may want to exit early (a.k.a. exit now). Our target remains the $48.25-47.50 range.

Picked on May 24 at $ 53.38
Change since picked: - 3.07
Earnings Date 05/03/05 (confirmed)
Average Daily Volume = 452 thousand
 

Dropped Calls

First Marblehead - FMD - close: 35.17 chg: -9.47 stop: 42.49

Whoa! Talk about a negative reaction. Shares of FMD lost more than 21 percent with massive volume driving the decline. The move was sparked by news from Collegiate Funding Services (CFSI). CFSI is the third largest client for FMD and CFSI's announcement today that it would keep and service more of its own loans was a big blow to FMD. Investors panicked that this could herald a new challenge for FMD with other clients pursuing this path (source:CBSMW). Thankfully we had a trigger to go long the stock at $45.01 and that trigger has not been hit. This allows us to close the play unopened.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/05 (confirmed)
Average Daily Volume = 782 thousand
 

Dropped Puts

None
 

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