Bard C.R.- BCR - close: 61.36 change: -0.34 stop: 64.25
BCR slipped to a new low for the year today. We see no changes from our play update on Wednesday. Our first target is the $58.00 level. More aggressive traders might want to aim for the $55 region. Our time frame is less than six weeks.
Picked on October 26 at $ 61.70
Broadcom - BRCM - close: 41.31 chg: -1.62 stop: 44.11*new*
Big declines in the tech sector and sharp 2.7% drop in the SOX semiconductor index weighed on shares of BRCM. Bears should be encouraged by the technical breakdown in the SOX under its simple 200-dma. BRCM lost 3.77% and hit a new six-week low while also breaking down under its simple 100-dma. The $41.00 level might offer support as the top edge of its gap higher but we will continue to target the $37 level. We are adjusting our stop loss to $44.11.
Picked on October 24 at $ 41.95
Infosys Tech. - INFY - close: 65.52 chg: -2.43 stop: 70.51
INFY produced a very brief spike higher at the open this morning but the rally failed under the $70.00 level and the simple 200-dma. The spike higher probably offered a better entry point to buy puts on INFY. The stock's strength quickly faded into weakness and shares closed under potential support at the $66 level for a 3.5% decline. Our target is the $62-60 range. A date to remember is November 11th where INFY will host an analyst meeting.
on October 26 at $ 67.95
(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.)
AmerisourceBergen - ABC - cls: 73.44 chg: +0.05 stop: n/a
We see no change from our previous updates on ABC. We would not suggest new strangle positions at this time. Earnings are due out next week.
Picked on October 16 at $ 74.81
Abercrombie&Fitch - ANF - cls: 46.97 chg: -2.26 stop: n/a
Market weakness before the opening bell lead to ANF gapping lower to open at $48.70. This was outside our suggested entry window of $49.00-51.00 and shares of ANF never rallied high enough to hit our entry point. Therefore the play is currently "unopened". Technicals are definitely starting to look more bearish and if ANF trades under $45.59, the low on October 19th, traders might want to consider just buying puts. We are going to keep ANF on the play list as a potential strangle candidate. However, we're going to adjust our entry window to 49.50-50.50. Until then we'll just sit on the sidelines and watch. If ANF does hit our new entry window we'll suggest the December $55 call (ANF-LK) and the December $45 put (ANF-XI) as our strangle.
Picked on October xx at $ xx.xx
ASF continues to oscillate on either side of the $40.00 mark. This is still an entry point to consider new strangle positions. We would suggest initiating strangles before the company reports earnings on November 1st. 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
Avid Tech. - AVID - close: 43.83 chg: +1.64 stop: n/a
AVID reported earnings today and beat estimates by 14 cents a share. The positive earnings news gave AVID enough strength to shrug off the market weakness. We are not suggesting new strangle positions at this time. The options to watch in our current suggested strangle is the December $45 call (AQI-LI) and the December $35 put (AQI-XG). We plan to exit if either side of the strangle rises to $4.50 or more.
Picked on October 25 at $ 39.56
Genentech - DNA - close: 87.09 chg: -2.43 stop: n/a
The biotech sector was hit pretty good with some profit taking today. The BTK biotech index lost 2.3% while shares of DNA sank 2.7% and closed back under its simple 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
eBay Inc. - EBAY - close: 37.84 chg: -0.46 stop: n/a
EBAY's oversold bounce has failed under the $39 level. We see no changes from our previous update on EBAY. We're not suggesting new plays at this time. 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. Right now it looks like the put side may end up being the winning side.
Picked on October 18 at $ 40.42
General Dynamics - GD - cls: 115.16 chg: -0.51 stop: n/a
GD continues to look weak but it is testing support near $115 and its simple 100-dma. We are not suggesting new strangle plays. Our strangle strategy 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
Harman Intl - HAR - cls: 100.10 chg: -0.81 stop: n/a
HAR is trading very close to the $100 mark. Traders looking for new strangles might want to consider one here but we would use the December strikes. Our initial strangle is based on 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
Hutchinson Tech. - HTCH - cls: 24.50 chg: -0.39 stop: n/a
We see no changes from our Wednesday update on HTCH. Our entry window to consider launching strangle plays is $24.75-25.25. The options we are suggesting are the January $30 calls (UTQ-AF) and the January $20 puts (UTQ-MD). We would try and keep it around $1.75 or less. We'll target a rise to $3.00. We are suggesting that readers open their positions ahead of HTCH's earnings report on November 1st.
Picked on October 26 at $ 24.89
IRF continued to sink today after yesterday's afternoon decline. Shares lost just over three percent by the closing bell. After the closing bell IRF reported earnings that were inline with estimates by revenues came in a bit lighter than expected. Plus, management issued guidance, which was somewhat below Wall Street estimates. After hours markets had IRF trading around $31.70. We are not suggesting new plays. The options in our strangle are the December $40 call (IRF-LH) and the December $30 put (IRF-XF). We'll look for a rise to $2.40 as our target.
Picked on October 25 at $ 34.95
Kos Pharma - KOSP - close: 61.65 chg: -1.35 stop: n/a
We see no changes from our previous update. If KOSP were to pull back closer to the $60.00 mark readers might consider initiating new strangle positions ahead of the company's November 3rd earnings date. However, investors might want to consider using December strikes. 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
Legg Mason - LM - cls: 102.96 chg: -5.52 stop: n/a
Another day, another $5.00 move in shares of LM. This has got to be great for the day traders out there! We are not suggesting new plays at this time. Our suggested strangle involves the November $110 call (LM-KB) and the November $90 put (LM-WR). 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
Loews - LTR - close: 88.80 change: -1.87 close: n/a
LTR reported earnings this morning before the bell. The results were not strong enough to save the stock from Thursday's market-wide sell-off. We are not suggesting new plays at this time. 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
Microsoft - MSFT - close: 24.89 change: -0.22 stop: n/a
The big news in MSFT today came out after the bell. The company reported earnings and beat estimates by a penny. However, management also issued an earnings warning. Shares were trading mostly lower in after hours markets but showing lots of volatility (for MSFT). We are not suggesting new plays but the $24.75-25.25 entry window to launch strangles still applies. Our strangle is based on the December $27.50 call (MSQ-LY) and the December $22.50 put (MSQ-XX). Traders looking for new positions might want to consider using January strikes.
Picked on October 25 at $ 25.03
O'Reilly Auto. - ORLY - close: 27.24 chg: -0.18 stop: n/a
We see no changes from our previous update on ORLY. 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
Verifone Holdings - PAY - cls: 21.84 chg: -0.81 stop: n/a
PAY displayed some volatility today but managed to rebounded sharply off its lows. We're not suggesting new strangle plays at this time. The options in our suggested January strangle are the January $17.50 puts (PAY-MW) and the January $22.50 calls (PAY-AX). 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 (PAY-WW) and the November $22.50 calls (PAY-KX). We would sell if either of these hits $2.00 or more.
Picked on October 12 at $ 19.98
Target Corp - TGT - close: 52.50 change: -1.36 stop: 52.74
Another down day for the markets and a big decline in the retail sector helped push shares of TGT through technical support at its simple 50-dma. The RLX index lost 2.4% and shares of TGT lead the way with a 2.5% decline. The stock hit our stop loss at $52.74 closing the play.
Picked on October 19 at $ 54.01
ITT Industries - ITT - close: 98.95 chg: -8.45 stop: n/a
Target achieved! ITT reported earnings before the opening bell today. The company beat estimates by 2 cents but issued an earnings warning going forward. The stock gapped down to open at $100.02 and sank to $97.25 intraday to touch its simple 200-dma. Our strangle was based on the November $115 call and the November $105 put (ITT-WA). The goal was to sell if either side rose to $4.50-5.00. The put hit a high of $7.20 and is currently trading at 6.00bid/6.40ask. Our hypothetical cost of the strangle was $2.55.
Picked on October 20 at $109.96
P.F.Chang's - PFCB - close: 43.02 chg: -1.36 stop: n/a
Target achieved. Shares of PFCB sank another three percent today despite one analyst firm reiterating their buy rating for PFCB based on valuation. The drop today pushed the November $45 put past our target of $2.50. The put (HUO-WI) hit a high of $2.65 and is trading at 2.45bid/2.80ask. Our hypothetical cost for the strangle was $1.50.
Picked on October 20 at $ 49.99