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Call Updates

SurModics - SRDX - close: 42.99 chg: -0.38 stop: 39.99

SRDX experienced a little bit of profit taking but that is to be expected after its strong run thus far. We are not suggesting new positions at this time. More conservative traders may want to tighten their stops to breakeven. Our target for SRDX is the $44.50-45.00 range.

Picked on October 18 at $ 40.95
Change since picked: + 2.04
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 249 thousand

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Target Corp - TGT - close: 54.05 change: -1.17 stop: 52.49

Concerns over consumer confidence and worries that consumer spending may slow hit the retail sector today. Shares of TGT lost more than two percent and fell back to the $54 level and its simple 50-dma. Of course that's where we have been telling readers to watch for a dip. A bounce from here near $54 can be used as a new bullish entry point.

Picked on October 19 at $ 54.01
Change since picked: + 0.04
Earnings Date 11/10/05 (unconfirmed)
Average Daily Volume = 3.8 million
 

Put Updates

Broadcom - BRCM - close: 42.98 chg: -0.27 stop: 45.01

A negative reaction to TXN's earnings report undermined the semiconductor index today and the SOX lost just over one percent. Shares of BRCM were a bit more resilient and only lost 0.6% while spending most of the session trading sideways. We remain very cautious here and would not suggest new bearish positions until we saw the stock break Monday's low.

Picked on October 24 at $ 41.95
Change since picked: + 1.03
Earnings Date 10/20/05 (confirmed)
Average Daily Volume = 7.3 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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AmerisourceBergen - ABC - cls: 74.44 chg: -1.36 stop: n/a

News that ABC had received a notice of termination from United Drugs helped push the stock to a 1.79% decline on above average volume. We would not suggest new strangle positions at this time. The move out of our suggested entry window puts us in a wait-and-see mode. Earnings are due out next week.

Picked on October 16 at $ 74.81
Change since picked: - 0.37
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

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Administaff - ASF - close: 40.65 change: +0.31 stop: n/a

Shares of ASF continue to inch higher. We see no changes from our Monday update. We would still consider launching new strangle positions with the stock within the $41-39 range (although we'd prefer the 40.50-39.50 range). The options we are suggesting for the strangle are the November $45 call and the November $35 put. Try and keep your investment under $1.80. Our plan is to exit if either option hits $2.75 or more.

Picked on October 23 at $ 39.40
Change since picked: + 1.25
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 433 thousand

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Genentech - DNA - close: 88.37 chg: +1.42 stop: n/a

News that the FDA has given DNA and BIIB a priority review for their Rituxan drug helped push the stock higher. Shares of DNA broke through the $88 level and its 50-dma. We would not suggest new strangle positions at this time. The options in our suggested strangle are the December $95 call and the December $75 put. We plan to exit if either option rises to $4.50-5.00 or more.

Picked on October 20 at $ 84.83
Change since picked: + 3.54
Earnings Date 10/10/05 (confirmed)
Average Daily Volume = 3.9 million

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eBay Inc. - EBAY - close: 38.01 chg: -1.41 stop: n/a

EBAY lost more than 3.5% today on strong volume after word got out that GOOG might release a competing product for EBAY's Paypal or Craigslist, which EBAY has a minority stake. The decline today pushed EBAY under technical support at its simple 200-dma. We are not suggesting new strangle positions. The options in our suggested strangle are the November $45 call and the November $35 put. If either option rises to $2.00 or more we'll exit.

Picked on October 18 at $ 40.42
Change since picked: - 2.41
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 18.3 million

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General Dynamics - GD - cls: 116.42 chg: -2.16 stop: n/a

Investors did not respond well to earnings from NOC and LMT today. This pushed GD lower by more than 1.8%. We are not suggesting new plays at this time. Our strangle involves the November $125 call and the November $115 put. We plan to sell if either option rises to $4.00 or more.

Picked on October 09 at $119.59
Change since picked: - 3.17
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 713 thousand

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Harman Intl - HAR - cls: 104.04 chg: -0.91 stop: n/a

We are not suggesting new strangle positions. Our strangle involves the November $110 call and the November $90 put. We plan to exit if either option rises to $6.00 or more.

Picked on October 18 at $100.80
Change since picked: + 3.24
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 739 thousand

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ITT Industries - ITT - close: 110.86 chg: -1.99 stop: n/a

ITT has completely reversed yesterday's gains and retested the $110 level. If you're looking for a new entry point to consider a strangle before ITT's earnings report (due out Thursday) then this is it. We would not initiate a new position if ITT moves much further away from the $110 mark. Our current strategy involves the November $115 call and the November $105 put. We'll plan to exit if either option rises to into the $4.50-5.00 range.

Picked on October 20 at $109.96
Change since picked: + 0.90
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 532 thousand

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Kos Pharma - KOSP - close: 61.28 chg: +0.97 stop: n/a

KOSP continues to bounce but remain under its trendline of lower highs. We are not suggesting new strangle positions at this time. The options for our previously suggested strangle are the November $65 call and the November $55 put. We'll plan to exit if either option rises to $5.00 or more.

Picked on October 20 at $ 59.80
Change since picked: + 1.48
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 460 thousand

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Legg Mason - LM - cls: 103.48 chg: -6.22 stop: n/a

Wow! That was quite a reaction in shares of LM today. The company reported earnings before the bell this morning and revenues came in under Wall Street's estimates. When the market opened there was an immediate "sell the news" reaction and shares of LM dropped to the $100.00 mark by the afternoon. Unfortunately we are almost back to where we started and LM remains stuck inside its $100-110 trading range. We are not suggesting new strangle positions at this time. Our suggested strangle involves the November $110 call and the November $90 put. We'll plan to exit if either rise to $4.50 or higher, which is an adjustment from our previous target of $5.00.

Picked on October 12 at $102.59
Change since picked: + 0.89
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 966 thousand

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Loews - LTR - close: 91.35 change: -0.58 close: n/a

We see no changes from our Monday update. We are not suggesting new positions at this time. Earnings are expected on Thursday. The options in our strategy are the December $95 calls and the December $85 puts. We'll plan to exit if either option rises to $5.00 or more.

Picked on October 23 at $ 89.94
Change since picked: + 1.41
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

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O'Reilly Auto. - ORLY - close: 27.00 chg: +0.09 stop: n/a

ORLY didn't see a lot of action today as investors waited for the company's earnings report after the closing bell. Earnings came out to be 37 cents a share, inline with estimates, but revenues were a little bit lighter than Wall Street expected. That revenue miss could/should push the stock lower tomorrow. Unfortunately, we didn't see any action in the after hours markets. We are not suggesting new strangle positions at this time. The options in our previously suggested strangle are the November $30 calls and the November $25 puts. We'll plan to sell if either option rises to $1.75 or more.

Picked on October 09 at $ 28.23
Change since picked: - 1.23
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 513 thousand

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Verifone Holdings - PAY - cls: 22.23 chg: +0.03 stop: n/a

We see no changes from our Monday update. We're not suggesting new strangle plays at this time. The options in our suggested January strangle are the January $17.50 puts and the January $22.50 calls. We plan to sell if either of these hits $4.50 or more. We also suggested an alternative, more aggressive, November strangle with the November $17.50 puts and the November $22.50 calls. We would sell if either of these hits $2.00 or more.

Picked on October 12 at $ 19.98
Change since picked: + 2.25
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

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P.F.Chang's - PFCB - close: 50.31 chg: -0.62 stop: n/a

The pull back toward the $50.00 level this afternoon offered traders one last chance to initiate strangle positions before the company reports earnings tomorrow. Analysts are looking for PFCB to turn in profits of $0.32 a share when the company reports tomorrow morning before the bell. We are no longer suggesting new strangle positions. Our suggested strangle was with the November $45 puts and the November $55 calls. We'll sell if either option rises to $2.50 or more.

Picked on October 20 at $ 49.99
Change since picked: + 0.32
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 912 thousand
 

Dropped Calls

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Dropped Puts

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Dropped Strangles

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