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Call Updates

Las Vegas Sands - LVS - close: 38.46 chg: +0.47 stop: 36.99

LVS managed a nice rebound from this morning's lows near its simple 50-dma. This may prove to be another bullish entry point but we remain skeptical consider the stock's recent weakness. More aggressive traders may want to consider new positions here. Time is running out though as LVS is due to report earnings on August 3rd and we do not want to hold over the event.

Picked on July 21 at $ 40.31
Change since picked: - 1.85
Earnings Date 08/03/05 (confirmed)
Average Daily Volume = 934 thousand


Pediatrix Med Group - PDX - cls: 77.25 chg: -0.76 stop: 74.25

No change from our previous update. Our target is the $80-82 range. We would not suggest new plays at this time. We plan to exit before its August 3rd earnings report.

Picked on July 11 at $ 76.10
Change since picked: + 1.15
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 158 thousand

Put Updates

AutoZone - AZO - close: 97.85 chg: +0.24 stop: 100.01

No change from our previous updates. AZO continues to look poised for more declines with what appears to be a double-top pattern. Our target is the simple 50-dma currently at 92.88.

Picked on July 25 at $ 98.13
Change since picked: - 0.28
Earnings Date 09/20/05 (unconfirmed)
Average Daily Volume = 748 thousand


Best Buy Co - BBY - close: 77.89 chg: +3.00 stop: 76.61

Today's action in BBY is a good reason why we have been suggesting triggers for these more aggressive put plays. We are currently still sitting on the sidelines waiting for BBY to trade at $73.25 so today's 4% rally is not a problem. However, we are surprised that BBY rallied so strongly. The only positive press we could find was an analyst reiterated their "buy" rating on the stock. It's possible BBY rallied on the positive comments in the Fed's Beige book report about the economy today. The sudden spike higher looks like a possible short squeeze. We're going to leave the play open as a potential for now with the same trigger at $73.25 but we may end up adjusting the entry later if the broader market indices start to consolidate lower. Don't forget that BBY is due to split 3:2 on August 4th.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/14/05 (confirmed)
Average Daily Volume = 3.3 million


Fannie Mae - FNM - close: 56.70 chg: -0.74 stop: 59.51

Wednesday proved to be a down day for FNM. The stock declined through most of the session and broke down intraday below technical support at its 100-dma. Shares of FNM hit our trigger to buy puts at $56.49 this afternoon before rebounding from its intraday low at $56.18. The play is now open but traders can watch for a potential bounce back to the $58 region before FNM turns lower again. Patient traders might use a failed rally under $58 as a new entry point.

Picked on July 27 at $ 56.49
Change since picked: + 0.21
Earnings Date 00/00/05 (unconfirmed)
Average Daily Volume = 3.3 million


Infosys Tech. - INFY - cls: 71.91 chg: -0.64 stop: 75.01

No change from our previous update. We would not suggest new bearish positions until INFY traded back under the $70.00 level.

Picked on July 20 at $ 69.92
Change since picked: + 1.99
Earnings Date 07/12/05 (confirmed)
Average Daily Volume = 922 thousand


KB Home - KBH - close: 81.27 chg: +0.23 stop: 82.51

Tomorrow could be another rough day for bears in the homebuilding stocks. When we originally added KBH to the play list we specified the upcoming Pulte Homes (PHM) earnings report as one of the biggest risks to buying puts in KBH. Well, it may prove to be true. PHM reported earnings after the closing bell today and earnings were good. The company beat estimates, announced a 2-for-1 stock split and raised their earnings guidance. PHM will likely soar tomorrow pulling the DJUSHB index and KBH with it. Shares of KBH were already trading near $82.00 in after hours markets tonight. We are not suggesting new plays with KBH above the $80.00 mark and fully expect to be stopped out tomorrow.

Picked on July 26 at $ 79.85
Change since picked: + 1.42
Earnings Date 09/15/05 (unconfirmed)
Average Daily Volume = million


Lehman Brothers - LEH - cls: 106.37 chg: +0.43 stop: 108.01

News that Prudential started coverage on LEH with an "overweight" rating lent the stock (LEH) early strength this morning but it quickly faded. Unfortunately, LEH continues to find support at the $105.00 level and the afternoon rally in the markets helped power a rebound in LEH. More conservative traders can probably sit out and wait for LEH to trade under the $105.00 mark before considering new put positions.

Picked on July 21 at $105.13
Change since picked: + 1.24
Earnings Date 06/14/05 (confirmed)
Average Daily Volume = 2.7 million


3M Co. - MMM - close: 73.65 change: -0.13 stop: 77.51

No change from our previous update. MMM continues to under perform. Previous support at $74.00 acted like overhead resistance this afternoon during the bounce. Our short-term target is the $70-68 range.

Picked on July 19 at $ 74.29
Change since picked: - 0.64
Earnings Date 07/18/05 (confirmed)
Average Daily Volume = 3.4 million


Children's Place - PLCE - cls: 45.21 chg: -0.90 stop: 47.51

PLCE displayed some relative weakness today with a 1.95 percent decline on above average volume. The early move lower hit $44.80, which opened the play at our trigger of $44.90. While we are not excited about the late day bounce back above the $45.00 level we are going to leave our strategy intact. Our target is now the $40.50-40.00 range near its simple and exponential 200-dma's. More aggressive traders may want to put their stop at $48.01, since the $48.00 level has been clear resistance over the last two weeks. We'll leave our stop at 47.51 for now. Remember that we plan to exit before PLCE's August earnings report.

Picked on July 27 at $ 44.90
Change since picked: + 0.31
Earnings Date 08/11/05 (unconfirmed)
Average Daily Volume = 775 thousand

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