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Call Updates

BP Prudhoe Bay - BPT - close: 73.07 chg: -0.88 stop: 72.49

BPT tried to rally this morning but failed under the $75.00 level. New losses in crude oil and the energy sector continue to weigh on the stock. We remain on the sidelines. Our adjusted trigger to buy calls is at $75.05. However, considering the ongoing weakness in the energy sector traders may want to reconsider initiating any bullish positions in the group.

Picked on October xx at $ xx.xx <-- see Trigger
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 175 thousand

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Broadcom - BRCM - close: 44.68 chg: -1.79 stop: 44.49

Whoa! The semiconductor sector was hit very hard today. The SOX index fell 3.2% after Xilinx (XLNX) issued an earnings warning. Shares of XLNX gapped lower and closed with a 16% loss. This weighed on the entire sector and traders rushed to take profits in BRCM too. Today's close under the $45.00 level could be bad news for BRCM bulls. We are in danger of being stopped out at $44.49. Keep an eye on the simple 50-dma near $44.10, which is BRCM's next level of support. We will be stopped out if BRCM dips to the 50-dma but nimble traders might watch for a rebound and a new entry point, of course now that the SOX has broken down from its trading range the next move in BRCM may be lower as well.

Picked on September 25 at $ 45.05
Change since picked: - 0.37
Earnings Date 10/20/05 (confirmed)
Average Daily Volume = 7.0 million

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Bear Stearns - BSC - close: 104.65 chg: -0.60 stop: 102.49

BSC is extending its weakness from last week. Today's drop marks the sixth loss in a row. The stock is very short-term oversold and due for a bounce. The close under the $105 level could be used as a signal to exit. We're choosing to keep the play open since today was Columbus day and the bond market was closed and many of the market's professional traders were absent. Friday's MACD sell signal looks stronger now.

Picked on October 02 at $109.75
Change since picked: - 5.10
Earnings Date 09/15/05 (confirmed)
Average Daily Volume = 1.2 million

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Cardinal Health - CAH - close: 62.49 chg: -1.06 stop: 59.85

CAH dipped to its 21-dma and the $62.00 level today. A bounce from here could be used as a new bullish entry point. However, we would wait to see the broader indices turn higher before initiating new bullish positions. Right now the major indices look pretty vulnerable!

Picked on September 25 at $ 61.95
Change since picked: + 0.54
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 2.0 million

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Cameco Corp - CCJ - close: 51.72 chg: -0.31 stop: 49.49

In the news over the weekend CCJ announced it would sell its entire 6.7% stake interest in Energy Resources of Australia Limited, another uranium producer. The headline didn't seem to have much of an affect on shares of CCJ. We see no changes from our weekend update.

Picked on September 18 at $ 53.30
Change since picked: - 1.58
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 862 thousand

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Cigna - CI - close: 114.80 change: -0.97 stop: 111.49

Market weakness on Monday pulled CI lower and the stock is nearing technical support at its simple 50-dma (113.97). We would wait for the stock to trade back over $116.50 before considering new bullish positions.

Picked on September 29 at $116.51
Change since picked: - 1.71
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 991 thousand

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General Dynamics - GD - cls: 119.27 chg: -0.32 stop: n/a

News that hurricane Katrina would force rival defense contractor Northrop Grumman (NOC) to reduce its earnings estimates did not seem to have much of an affect on shares of GD today. This is a strangle play so we do not care what direction GD moves as long as it moves enough to make the strangle position profitable. We do plan on holding over the October 19th earnings report. Our strategy is to buy the November 125 call and the November 115 put.

Picked on October 09 at $119.59
Change since picked: - 0.32
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 713 thousand

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Altria Group - MO - close: 71.52 change: -0.94 stop: 69.90

Monday brought more profit taking to shares of MO. The stock lost 1.29% and looks headed toward support near $70.75 and its 50-dma near 70.45. We would not suggest new plays at this time.

Picked on September 18 at $ 73.14
Change since picked: - 1.62
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 6.7 million

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Pre Paid Legal - PPD - close: 39.70 chg: +0.35 stop: 37.85

PPD continues to show relative strength. The stock traded to $40.29 intraday, which was enough to hit our trigger at $40.10 opening the play. Readers can choose to buy a bounce from $39.00, which should be short-term support or wait for a new relative high (40.30) before initiating new long positions. Our target is the $44.00-45.00 range. We will plan to exit ahead of the October 24th earnings report.

Picked on October 10 at $ 40.10
Change since picked: - 0.40
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume = 72 thousand
 

Put Updates

Black & Decker - BDK - close: 79.14 chg: +0.45 stop: 83.05

BDK displayed some unusual strength today. More conservative traders may want to seriously consider exiting here for a profit. We're going to maintain our target in the $78-77 range.

Picked on September 14 at $ 83.31
Change since picked: - 4.17
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 636 thousand

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O'Reilly Auto. - ORLY - close: 28.09 chg: -0.14 stop: n/a

There is little change in shares of ORLY. The stock continues to churn inside its pennant type pattern. Remember, this is a strangle play. We do not care what direction ORLY moves as long as the move is big enough to make our investment profitable. We're suggesting traders buy the November 30 call and the November 25 put. We will hold over the late October earnings report.

Picked on October 09 at $ 28.23
Change since picked: - 0.14
Earnings Date 10/26/05 (unconfirmed)
Average Daily Volume = million

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Ryland Group - RYL - close: 62.25 chg: -2.13 stop: 66.75*new*

Homebuilders were punished again. The DJUSHB home construction index lost 3.6%. Shares of RYL followed with a 3.3% decline on very strong volume. Our target is the $60.50-60.00 range. We are going to lower the stop loss to $66.75.

Picked on October 05 at $ 65.70
Change since picked: - 3.45
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 1.0 million

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Wynn Resorts - WYNN - close: 42.73 chg: -0.12 stop: 45.11

WYNN tried to rally again this morning but failed under the $43.50 level. This looks like a new bearish entry point but you might want to wait for some downward momentum before initiating positions.

Picked on October 06 at $ 42.18
Change since picked: + 0.55
Earnings Date 10/31/05 (unconfirmed)
Average Daily Volume = 1.3 million
 

Dropped Calls

None
 

Dropped Puts

None
 

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