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Call Updates

Chubb Corp - CB - close: 87.33 change: +0.19 stop: 84.99

No change from our previous update. We remain defensive and won't hesitate to exit if CB starts to weaken. Our stop loss is at $84.99 but our mental stop is closer to $86.40. We are not suggesting new plays and plan to exit on Friday afternoon at the close.

Picked on June 10 at $ 85.05
Change since picked: + 2.28
Earnings Date 07/26/05 (confirmed)
Average Daily Volume = 1.2 million


Pediatrix Med Group - PDX - cls: 77.33 chg: +0.41 stop: 72.34

No change from our previous update. PDX is holding up pretty well considering the relative weakness in the healthcare stocks. Our target is the $80.00-82.00 range.

Picked on July 11 at $ 76.10
Change since picked: + 1.23
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 158 thousand


Reynolds American - RAI - close: 83.48 chg: +1.38 stop: 78.83 *new*

A positive earnings report from larger rival Altria Group (MO) helped boost shares of RAI today. Shares of RAI added 1.68 percent on volume that's been better than the last few sessions. The stock is nearing our target in the $84.00-85.00 range. More conservative traders may want to seriously consider taking profits now. RAI announced that they will report earnings next week on July 27th. We will plan to exit this play before their earnings assuming RAI doesn't hit our target between now and then. We are raising the stop loss to $78.83.

Picked on July 10 at $ 78.83
Change since picked: + 4.65
Earnings Date 07/27/05 (confirmed)
Average Daily Volume = 664 thousand

Put Updates

Fedex - FDX - close: 84.36 chg: +2.20 stop: 85.01

Wow! Today's candlestick looks like bad news for the bears. The combination of positive earnings results from a trucking company and another drop in oil prices helped fuel the rebound in shares of FDX. Technically this is a bullish engulfing candlestick and could very well be a bullish reversal in progress. We are NOT suggesting new plays here. If the market continues higher tomorrow we suspect we'll be stopped out at $85.01.

Picked on July 19 at $ 82.16
Change since picked: + 2.20
Earnings Date 06/23/05 (confirmed)
Average Daily Volume = 2.1 million


Ishares Global Energy - IXC - cls: 89.34 chg: -0.05 stop: 91.61

We remain on the defensive here. The plan was to capture a quick drop as investors locked in profits. The oil sector is showing too much relative strength for our liking. Longer-term we remain bullish on the group but hesitate to suggest new call plays with the sector so overbought.

Picked on July 14 at $ 89.15
Change since picked: + 0.19
Earnings Date 00/00/00
Average Daily Volume = 33 thousand


3M Co. - MMM - close: 74.68 change: +0.39 stop: 77.51

No change from yesterday's update.

Picked on July 19 at $ 74.29
Change since picked: + 0.39
Earnings Date 07/18/05 (confirmed)
Average Daily Volume = 3.4 million


Children's Place - PLCE - cls: 47.00 chg: -0.19 stop: 47.51

We are encouraged by PLCE's relative weakness today but we remain on the sidelines. Our suggested entry point is at $44.90 under technical support at the 100-dma and under round-number support at the $45.00 mark.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/11/05 (unconfirmed)
Average Daily Volume = 775 thousand


Wellchoice - WC - close: 68.95 chg: -0.54 stop: 72.51

Healthcare stocks continue to show relative weakness and WC still looks poised for more profit taking. No changes from our previous update.

Picked on July 14 at $ 69.46
Change since picked: - 0.51
Earnings Date 08/03/05 (confirmed)
Average Daily Volume = 268 thousand

Dropped Calls

Coventry Hlth Care - CVH - cls: 70.49 chg: -1.06 stop: 69.49

Healthcare stocks continue to under perform the broader indices. CVH was one such stock that closed with a 1.48 percent decline on a session where the broader averages were hitting new relative highs. The intraday dip under the $70.00 level hit our stop loss at $69.49 closing the play.

Picked on July 05 at $ 72.75
Change since picked: - 2.26
Earnings Date 08/02/05 (unconfirmed)
Average Daily Volume = 1.0 million


Quanex - NX - close: 59.59 change: +1.21 stop: 54.99

Target achieved. The broad market rally today helped fuel NX's rebound from Tuesday and the stock added more than two percent. Shares are testing round-number resistance at the $60.00 mark. Our target was the $59.50-60.00 range so we are closing the play.

Picked on July 07 at $ 55.10
Change since picked: + 4.49
Earnings Date 08/25/05 (unconfirmed)
Average Daily Volume = 337 thousand


Toll Brothers - TOL - close: 58.25 chg: +1.35 stop: 51.98

Target achieved. Another big day for the homebuilders and the broader market helped push TOL to yet another new all-time high. TOL added 2.37 percent to trade into our target range of $57.50-60.00. We are closing the play.

Picked on July 10 at $ 51.98
Change since picked: + 6.27
Earnings Date 08/22/05 (unconfirmed)
Average Daily Volume = 2.4 million

Dropped Puts

Martin Marietta - MLM - cls: 72.19 chg: +3.19 stop: 70.51

Thank God for play triggers. We were thankfully still sitting on the sidelines waiting for MLM to confirm its bearish reversal so we can close this play unopened. The gap higher today was fueled by positive earnings news. MLM isn't due to report until August 1st but the company raised its earnings guidance from 0.95-1.10 per share to $1.27-1.30 a share.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 313 thousand

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