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Call Updates

None
 

Put Updates

Bard C.R.- BCR - close: 61.83 change: -0.55 stop: 64.25

A pull back in the market allowed BCR to fall back in line with its trend of lower highs. We're still watching the simple 10-dma to see if it will act as overhead resistance. We hesitate to suggest new put positions since today's dip in the markets could just be a rest following its two-day rally. 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: + 0.13
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 745 thousand

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Broadcom - BRCM - close: 42.00 chg: -0.42 stop: 44.11

Semiconductors turned lower on Tuesday after the SOX tested its simple 200-dma as overhead resistance yesterday. Shares of BRCM didn't do much and traded in a narrow range between its 100-dma (below) and its 10-dma (above). 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. We are going to keep the play open for now.

Picked on October 24 at $ 41.95
Change since picked: + 0.05
Earnings Date 10/20/05 (confirmed)
Average Daily Volume = 7.3 million

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Infosys Tech. - INFY - close: 69.00 chg: +1.00 stop: 70.51

Software stocks posted another gain with Microsoft (MSFT) leading the way. INFY out performed its peers with a 1.4% 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 and the GSO is testing the 170 area right now!

Picked on October 26 at $ 67.95
Change since picked: + 1.05
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: 75.80 chg: -0.47 stop: n/a

Shares of ABC spent the day churning sideways in a tight range as investors wait for the company's earnings report due out on November 3rd. The options in our suggested November strangle are the November $80 call (ABC-KP) and the November $70 put (ABC-WN). We plan to see if either side rises to $3.50. The options in our suggested December strangle 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: + 0.99
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

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Abercrombie&Fitch - ANF - cls: 52.40 chg: +0.41 stop: n/a

Shares of ANF continue to rise and out perform many of its peers. The rally could be enthusiasm for the company's same-store sales figures, which should come out within the next day or two. Expectations for ANF are positive given last month's report and Wal-Mart's recent above estimates sales report. Price action to the same-store sales numbers could be strong. 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: + 2.90
Earnings Date 11/15/05 (unconfirmed)
Average Daily Volume = 2.6 million

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Administaff - ASF - close: 44.97 change: +2.65 stop: n/a

ASF reported earnings this morning and the company beat estimates by three cents a share. The reaction to the news was positive with the stock up more than 6.2% on strong volume. The options in our previously 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. Right now we'd keep a close eye on those calls.

Picked on October 23 at $ 39.40
Change since picked: + 5.57
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 433 thousand

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Black Box - BBOX - close: 40.20 chg: +0.08 stop: n/a

BBOX spent most of the day trading sideways as investors waited for the company's earnings report after the bell tonight. Estimates were at 70 cents a share and the company beat by 6 cents. This pushed the stock up towards $43.60 in after hours markets. We are not suggesting new plays at this time. The options in our hypothetical strangle 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: + 0.80
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 124 thousand

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Genentech - DNA - close: 91.05 chg: +0.45 stop: n/a

DNA continues to rise and posted its second close over the $90.00 mark in several weeks despite a downgrade this morning to a "neutral" rating. 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: + 6.22
Earnings Date 10/10/05 (confirmed)
Average Daily Volume = 3.9 million

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eBay Inc. - EBAY - close: 40.27 chg: +0.66 stop: n/a

Internet stocks continue to climb mostly driven by big moves in shares of GOOG. EBAY has managed to post its third gain in a row and broke back above the $40.00 mark. 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: - 0.15
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 18.3 million

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General Dynamics - GD - cls: 116.04 chg: -0.26 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: - 3.55
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 713 thousand

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Harman Intl - HAR - cls: 99.95 chg: +0.09 stop: n/a

Unfortunately we are dealing with a worse-case scenario here with HAR. The stock has pulled back to the $100 level and has been churning sideways for the last four sessions. That's the worse thing that can happen to us with a strangle. The options in our previously suggested strangle are 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: - 0.85
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 739 thousand

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Hutchinson Tech. - HTCH - cls: 24.00 chg: -0.80 stop: n/a

HTCH gave traders one last chance to enter new strangles with its early morning rally to the $25.00 level. After the closing bell the company reported earnings and beat estimates by five cents a share. This pushed shares higher in after hours trading but it looked like HTCH was struggling to maintain those gains. The options we were suggesting are the January $30 calls (UTQ-AF) and the January $20 puts (UTQ-MD). We'll target a rise to $3.00.

Picked on October 26 at $ 24.89
Change since picked: - 0.89
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 666 thousand

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Inamed Corp. - IMDC - close: 73.17 change: +1.89 stop: n/a

Bulls got excited for IMDC ahead of the company's earnings report. The stock added 2.65% on strong volume and closed just under its simple 50-dma. After the closing bell IMDC reported earnings and beat estimates by four cents a share. We did not see a lot of movement in the stock in after hours trading. We are not suggesting new plays at this time. 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: + 2.54
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 533 thousand

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Kos Pharma - KOSP - close: 58.79 chg: -1.21 stop: n/a

KOSP continue to sink with today marking its fourth loss in a row. The stock is outside our suggested entry window of $59.50-60.50 so we're not suggesting new plays. 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: - 1.01
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 460 thousand

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Legg Mason - LM - cls: 108.10 chg: +0.79 stop: n/a

Broker-dealer stocks were a pocket of strength today but shares of LM remain stuck inside 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: + 5.51
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 966 thousand

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Loews - LTR - close: 94.42 change: +1.44 close: n/a

LTR continues to display relative strength. The stock added 1.5% and broke out to a new all-time high today. We're not suggesting new strangle positions in LTR. 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: + 4.48
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

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Microsoft - MSFT - close: 25.96 change: +0.26 stop: n/a

MSFT continues to look strong and lead the software sector to another gain today. The stock is testing resistance at the $26 level. 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: + 0.93
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 64 million

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O'Reilly Auto. - ORLY - close: 28.83 chg: +0.63 stop: n/a

ORLY's 2.2% gain was fueled by strong volume today (about twice the average) and the rally was a nice follow through on yesterday's breakout over the 50-dma. 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: + 0.64
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 513 thousand

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Oshkosh Truck - OSK - close: 41.50 chg: -2.06 stop: n/a

OSK produced some volatility today following this morning's earnings report. The company beat by a penny but that wasn't enough to satisfy traders. The stock broke down below its simple 50-dma and is on the verge of falling out of its 41.50-44.00 trading range. We are not suggesting new strangles at this time. 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: - 1.32
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 405 million

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Verifone Holdings - PAY - cls: 23.60 chg: +0.40 stop: n/a

PAY continues to climb and added another 1.7% following yesterday's breakout over the simple 200-dma. 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: + 3.62
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

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Protein Design Labs - PDLI - cls: 27.50 chg: -0.52 stop: n/a

Today offered a great opportunity to launch a new strangle in PDLI with the stock oscillating sideways at the $27.50 level all day long. After the bell the company reported earnings and missed estimates by 7 cents a share. This news pushed the stock down toward $26 in after hours trading. We are no longer suggesting new strangle positions. The options in our hypothetical strangle are 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: - 0.20
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 1.8 million
 

Dropped Calls

None
 

Dropped Puts

Strayer Educ - STRA - close: 92.64 chg: +3.13 stop: 92.51

Wow! Talk about impeccable timing. We listed STRA as a potential put play last night and the stock erupts higher Tuesday morning. Making the move higher even more odd is the complete lack of news or catalyst to drive the stock higher. We checked the news on STRA and on most of its peers but could not find anything to account for STRA's sudden show of strength other than the short-term trendline of support we outlined last night. Our stop loss was $92.51 so we're closing the play.

Picked on October 31 at $ 89.51
Change since picked: + 3.13
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 158 thousand
 

Dropped Strangles

None
 

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