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Call Updates

None
 

Put Updates

Bard C.R.- BCR - close: 62.38 change: +0.48 stop: 64.25

Another positive day for the markets pushed BCR above the $62 level and the move certainly improved the short-term technical oscillators. However, the rally in BCR seemed to struggle around the $62.50 region so we're not giving up yet. BCR continues to trade under a trend of lower highs. Watch for the simple 10-dma near 62.85 to act as short-term resistance. We remain hesitant about initiating new positions especially with the market setting back to back gains but a failed rally under $63 could be used as a new bearish entry point. Our target is the $58.00 level but more aggressive traders might want to target the $55 region. Currently the Point & Figure chart points to a $55.00 target. Our time frame is less than six weeks.

Picked on October 26 at $ 61.70
Change since picked: + 0.68
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 745 thousand

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Broadcom - BRCM - close: 42.42 chg: +1.00 stop: 44.11

As we expected shares of BRCM continued to bounce. The action in the stock looks very similar to the move in the SOX. The three-day pattern in both looks like a short-term bullish reversal. We would not suggest new bearish positions in BRCM at this time. More conservative traders may want to tighten their stops or exit early to avoid further losses. However, keep an eye on the SOX. The SOX is still under resistance at its 200-dma (near 435) and the 440 level, which could be resistance, so we are going to keep the play open for now.

Picked on October 24 at $ 41.95
Change since picked: + 0.47
Earnings Date 10/20/05 (confirmed)
Average Daily Volume = 7.3 million

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Infosys Tech. - INFY - close: 67.14 chg: +1.62 stop: 70.51

Software stocks rallied for the second day in a row and the GSO software index is testing significant resistance at the 170 level. Meanwhile shares of INFY continued to bounce. Watch for a failed rally under the 200-dma near $70 as a new bearish entry point - but keep in mind that if the GSO does breakout over the 170 level we would strongly hesitate to launch new bearish positions in the sector.

Picked on October 26 at $ 67.95
Change since picked: - 0.81
Earnings Date 10/11/05 (confirmed)
Average Daily Volume = 698 thousand
 

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: 76.27 chg: +0.93 stop: n/a

Technical indicators are turning bullish on ABC with today's breakout over the simple 50-dma. We are not suggesting new strangle positions at this time with the stock outside our 74.50-75.50 entry window. ABC is due to report earnings on Thursday. The options in our strangles are as follows for November the Nov
$80 call (ABC-KP) and the November $70 put (ABC-WN). We plan to sell if either side rises to $3.50. If you're playing Decembers the options are the December $80 calls (ABC-LP) and the December $70 puts (ABC-XN). We would sell if either side rises to $5.00 or more.

Picked on October 16 at $ 74.81
Change since picked: + 1.46
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

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Abercrombie&Fitch - ANF - cls: 51.99 chg: +2.41 stop: n/a

Retailers turned in a big day on Monday. Concern over the upcoming holiday shopping seasons eased after news that prices at the pump have fallen sharply and that Wal-Mart (WMT) raised its same-store sales forecast. We are not suggesting new strangle positions in ANF at this time. Our suggested entry window was the $49.50-50.50 range. The options in our strangle are the December $55 calls (ANF-LK) and the December $45 puts (ANF-XI). We plan to sell if either side hits $5.00 or more.

Picked on October 28 at $ 49.50
Change since picked: + 0.08
Earnings Date 11/15/05 (unconfirmed)
Average Daily Volume = 2.6 million

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Administaff - ASF - close: 42.32 change: +1.03 stop: n/a

Tomorrow is ASF's earnings report. The company should announce before the opening bell. Analysts are looking for profits of $0.23 a share. We are not suggesting new plays. The options in our previous suggested strangle are the November $45 call (ASF-KI) and the November $35 put (ASF-WG). We plan to sell if either side of the strangle rises to $2.75 or more.

Picked on October 23 at $ 39.40
Change since picked: + 2.92
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 433 thousand

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Black Box - BBOX - close: 40.12 chg: +0.72 stop: n/a

The rise to the $40.00 level offered a great entry point to launch new strangle positions in BBOX ahead of its earnings report. Tomorrow is the last day to do that since BBOX reports earnings after the closing bell. Estimates are for 70 cents a share. Our suggested entry window is the $40.75-39.25 range but anything within 25 cents of the 40.00 mark should work even better. The options we're suggesting are the December $45 calls (QBX-LI) and the December $35 puts (QBX-XG). We're aiming for a rise to $2.85.

Picked on October 30 at $ 39.40
Change since picked: + 0.72
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 124 thousand

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Genentech - DNA - close: 90.60 chg: +2.88 stop: n/a

DNA turned in a big gain today rising 3.28% and closing over the $90.00 mark. The gain was fueled by news that the FDA had granted DNA and partner BIIB a priority review status to their application for Rituxan to be used as a treatment for rheumatiod arthritis. We are not suggesting new strangles at this time. The options in our strangle are the December $95 call (DWN-LS) and the December $75 put (DWN-XO). 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: + 5.77
Earnings Date 10/10/05 (confirmed)
Average Daily Volume = 3.9 million

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eBay Inc. - EBAY - close: 39.61 chg: +1.18 stop: n/a

Strength in the Internet sector today did not help us out. EBAY rose more than three percent and is trading back near the $40.00 level. This sideways churning is killing the option premiums. The options in our suggested strangle are the November $45 call (XBA-KI) and the November $35 put (XBA-WG). We are adjusting our price target for either side of the strangle from $2.00 to $1.65.

Picked on October 18 at $ 40.42
Change since picked: - 0.81
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 18.3 million

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General Dynamics - GD - cls: 116.30 chg: -0.35 stop: n/a

There is no change from our weekend update on GD. We're not suggesting new strangles. Our strangle strategy involves the November $125 call (GD-KE) and the November $115 put (GD-WC). We plan to sell if either option rises to $4.00 or more.

Picked on October 09 at $119.59
Change since picked: - 3.29
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 713 thousand

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Harman Intl - HAR - cls: 99.86 chg: +1.01 stop: n/a

Monday proved to be a relatively quiet day for HAR. The stock traded sideways most of the session just under the $100 mark. We are not suggesting new strangles but this sort of consolidation makes the HAR look like a strangle candidate. Of course this sideways churning is not helping our current strangle with the November $110 call (HAR-KB) and the November $90 put (HAR-WR). Over the weekend we adjusted our target to $4.00 to try and breakeven (which is $3.80).

Picked on October 18 at $100.80
Change since picked: - 0.94
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 739 thousand

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Hutchinson Tech. - HTCH - cls: 24.80 chg: +0.44 stop: n/a

The move back toward the $25.00 level pushed HTCH into our suggested entry window of $24.75-25.25. The company is expected to report earnings after the closing bell tomorrow so traders have one more day to try and initiate a position. The options we were suggesting are the January $30 calls (UTQ-AF) and the January $20 puts (UTQ-MD). We would try and keep the costs around $1.75 or less. We'll target a rise to $3.00.

Picked on October 26 at $ 24.89
Change since picked: - 0.09
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 666 thousand

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Inamed Corp. - IMDC - close: 71.28 change: +0.65 stop: n/a

IMDC continued to bounce from the $70 level today but shares did dip back to the $70.43 mark before rebounding. Technical oscillators are starting to look bullish again but everything depends on IMDC's earnings report. The company is expected to report after the closing bell tomorrow. Tuesday is our last chance to consider launching new strangles. Our suggested window is the $71.00-69.00 range. The options in our strangle are the December $75 call (UZI-LO) and the December $65 put (UZI-XM). We plan to sell if either side rises to $5.00 or more.

Picked on October 30 at $ 70.63
Change since picked: + 0.65
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 533 thousand

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Kos Pharma - KOSP - close: 60.00 chg: -0.79 stop: n/a

KOSP continues to consolidate sideways ahead of its November 3rd earnings report. Today's action offered another entry point to launch a strangle position. Our suggested window is the $60.50-59.50 range. The options for our previously suggested strangle are the November $65 call (KQW-KM) and the November $55 put (KQW-WK). We'll plan to exit if either option rises to $5.00 or more. FYI: if you're thinking about starting a new position we'd prefer to use the December options.

Picked on October 20 at $ 59.80
Change since picked: + 0.20
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 460 thousand

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Legg Mason - LM - cls: 107.31 chg: +3.31 stop: n/a

Monday was a strong day for the broker-dealers. The XBD index broke out to a new high. Hopefully this will give LM enough lift to breakout of its $100-110 trading range. We are not suggesting new positions. We are suggesting that more conservative traders think about adjusting their target to break even. The options in our previously suggested strangle were the November $110 call (LM-KB) and the November $90 put (LM-WR).

Picked on October 12 at $102.59
Change since picked: + 4.72
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 966 thousand

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Loews - LTR - close: 92.98 change: +2.23 close: n/a

LTR turned in a strong session rising 2.4% and breaking out above its recent highs. We're not suggesting new strangle positions but LTR is starting to look like a bullish candidate for call options. There is still some resistance in the $93.85-94.00 region. The options in our strategy are the December $95 calls (LTR-LS) and the December $85 puts (LTR-XQ). We'll plan to exit if either option rises to $5.00 or more.

Picked on October 23 at $ 89.94
Change since picked: + 3.04
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

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Microsoft - MSFT - close: 25.70 change: +0.17 stop: n/a

MSFT continues to climb following its earnings report last week. Today's gain pushed MSFT above technical resistance at its simple 200-dma. There were bulls ready and waiting to buy the dip this afternoon near $25.50. We are not suggesting new strangle positions. Our strangle is based on the December $27.50 call (MSQ-LY) and the December $22.50 put (MSQ-XX). We are aiming for a rise to $0.80-0.90 for either side of the strangle.

Picked on October 25 at $ 25.03
Change since picked: + 0.67
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 64 million

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O'Reilly Auto. - ORLY - close: 28.24 chg: +1.23 stop: n/a

ORLY produced a significant turn for the better today. The stock added 4.5% to push through resistance at $27.50, 28.00 and its simple 50-dma. This also appears to be a bullish breakout over its trend of lower highs. We are not suggesting new strangles at this time. We'll exit if either option in our strangle rises to $1.20. The options were the November $30 calls (OQR-KF) and the November $25 puts (OQR-WE). More conservative traders might want to consider just exiting at breakeven (0.75).

Picked on October 09 at $ 28.23
Change since picked: + 0.01
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 513 thousand

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Oshkosh Truck - OSK - close: 43.56 chg: +0.74 stop: n/a

OSK continued to rebound following Friday's gain but the stock remains inside its $41.50-44.00 trading range. Today was our only chance to initiate strangle positions ahead of the company's earnings report due out tomorrow morning. Estimates are at 57 cents a share. The options in our suggested strangle are the December $45 call (OSK-LI) and the December $40 put (OSK-XH). We're targeting a rise to $3.00 or more.

Picked on October 30 at $ 42.82
Change since picked: + 0.74
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 405 million

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Verifone Holdings - PAY - cls: 23.20 chg: +1.34 stop: n/a

Today was a big day for PAY. The stock added more than six percent and broke through its simple 200-dma to hit new relative highs. We're not suggesting new strangle positions. As a matter of fact traders with the November strikes should keep an eye on the November $22.50 calls (PAY-KX) as they are nearing our suggested target of $2.00 or more. Our suggested strangle was with the January strikes. The January $22.50 calls are PAY-AX and we're targeting a rise to $4.50 or more.

Picked on October 12 at $ 19.98
Change since picked: + 3.22
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

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Protein Design Labs - PDLI - cls: 28.02 chg: +0.32 stop: n/a

If you didn't initiate a position today then tomorrow is our last chance to start a strangle ahead of PDLI's earnings report, which is due out after the closing bell. Our suggested entry window is the $28.00-27.00 range. We're suggesting the December $30 calls (PQI-LF) and the December $25 puts (PQI-XE). We'll plan to sell if either side rises to $3.25.

Picked on October 30 at $ 27.70
Change since picked: + 0.00
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 1.8 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

Molson Coors Co - TAP - close: 60.90 chg: -0.00 stop: n/a

A cover article for BUD in Barron's appeared to give the beer makers a lift today. Shares of BUD gapped open this morning as did shares of TAP. TAP opened at $61.20 and continue to climb throughout the session. That's bad news for us. Our entry window to launch a strangle was $61.00-60.00 so we never got a chance to open any plays. TAP is expected to report earnings before the market open tomorrow morning. Estimates are at $1.23 a share.

Picked on October 30 at $ 60.90
Change since picked: + 0.00
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 553 thousand
 

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