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Call Updates

Amer. Intl Group - AIG - cls: 60.95 chg: 0.18 stop: 57.99

AIG continues to hang in there consolidating sideways near support at the $60 level and its 200-dma. We are still not suggesting new plays at the moment.

Picked on September 11 at $ 61.23
Change since picked: - 0.28
Earnings Date 11/08/05 (unconfirmed)
Average Daily Volume = 7.2 million


KB Home - KBH - close: 77.05 chg: 0.50 stop: 71.50

KBH continues to show relative strength and hit another new five-week high today while also closing above technical resistance at its 50-dma.

Picked on September 07 at $ 75.89
Change since picked: 1.16
Earnings Date 09/22/05 (confirmed)
Average Daily Volume = 2.5 million


MDC Holdings - MDC - close: 78.97 change: 0.19 stop: 74.45

MDC spent most of the session churning sideways between $78 and $80. We remain somewhat cautious considering the bearish tilt to some of its technical oscillators but we're not giving up yet. The next test is a breakout over the $80.00 mark and its 50-dma (80.50).

Picked on September 01 at $ 77.01
Change since picked: 1.96
Earnings Date 10/13/05 (unconfirmed)
Average Daily Volume = 489 thousand


Noble Energy - NBL - close: 44.38 chg: 0.10 stop: 42.49

NBL tried to breakout this morning and did hit a new all-time high but couldn't hold it. Yet neither did shares see much of a sell-off. The question now is whether or not NBL will see a post-split decline or a post-split rally. The $43.00 level should act as short-term support.

Picked on September 11 at $ 44.90 *post-split price
Change since picked: - 0.52
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 796 thousand


Noble Corp - NE - close: 71.07 change: 0.37 stop: 67.25

NE displayed some strength this morning as well but quickly sold off. Fortunately, there were traders buying the dip near the $70 level and NE closed in the green. More conservative traders may want to wait for a move over $72.00 before considering new positions.

Picked on August 31 at $ 71.30
Change since picked: - 0.23
Earnings Date 10/17/05 (unconfirmed)
Average Daily Volume = 1.8 million

Put Updates

Adobe Sys. - ADBE - close: 26.90 chg: -0.29 stop: n/a

Buckle your seat belt. Now we get to sit back and watch. ADBE reported earnings after the bell today. Wall Street was expecting 27-cents a share. The company beat those expectations by 2 cents with revenues rising almost 21 percent. ADBE's revenue guidance for the fourth quarter wasn't too glamorous but the stock appears to be moving higher in after hours. Remember, this is a strangle play. We don't care what direction ADBE moves as long as it moves enough to make our $1.55 investment profitable before the October options expire.

Picked on September 13 at $ 26.82
Change since picked: 0.16
Earnings Date 09/15/05 (confirmed)
Average Daily Volume = 6.2 million


Black & Decker - BDK - close: 82.95 chg: -0.36 stop: 87.75

BDK tried to rally this morning but the rally failed at $84.23. Today's 36-cent decline wasn't the sort of downward confirmation we were expecting but the pattern still looks pretty bearish. We would still open new bearish positions here. For more info see last night's play description. Our target is the $78-77 range.

Picked on September 14 at $ 83.31
Change since picked: - 0.36
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 636 thousand


Fedex Corp - FDX - close: 79.72 chg: -0.08 stop: 83.51

Bulls aren't giving up on FDX without a fight but the stock managed to hit another new relative low today. Our target is the $76-75 range.

Picked on August 23 at $ 82.99
Change since picked: - 3.27
Earnings Date 09/22/05 (unconfirmed)
Average Daily Volume = 2.0 million


Hershey Co. - HSY - close: 57.87 change: 0.27 stop: 59.51

No change from our previous update on HSY. Our target is the $54.00-53.50 range.

Picked on September 14 at $ 57.90
Change since picked: - 0.03
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume = 760 thousand


Ishares DJ Fin. Serv. - IYF - cls: 95.63 chg: 0.17 stop: 96.75

No change from our previous update on IYF. The MACD appears to be nearing a new sell signal. Our six-week target is the $92.00 level.

Picked on September 13 at $ 95.76
Change since picked: - 0.13
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 20 thousand


MBIA Inc. - MBI - close: 57.36 chg: 0.81 stop: 59.01

MBI produced a bit of a bounce today but we see no changes from our previous updates. Our short-term target is the $54.25 mark.

Picked on September 13 at $ 57.75
Change since picked: - 0.39
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 1.2 million


United Parcel Svc - UPS - cls: 68.46 chg: 0.16 stop: 70.11*new*

Our target has already been hit but we're looking for another, more convincing move into the $68.00-67.00 range. More conservative traders can exit right here! We are lowering the stop loss to $70.11.

Picked on August 17 at $ 71.99
Change since picked: - 3.53
Earnings Date 07/21/05 (confirmed)
Average Daily Volume = 2.6 million

Dropped Calls

Centex - CTX - close: 66.73 chg: -0.76 stop: 64.99

We are going to follow our own suggestion from yesterday and exit early. CTX has not bounced from its simple 10-dma and the technical picture is deteriorating. The stock does still have potential support at the $66.00 level and again near its 200-dma (around 64.50) but we'd rather exit now and look for a bounce from the 200-dma.

Picked on September 01 at $ 68.25
Change since picked: - 1.52
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 1.6 million

Dropped Puts


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