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Call Updates

Peabody Energy - BTU - close: 80.98 chg: +1.00 stop: 76.99

BTU bucked the general down trend in the markets today and added another 1.25% and closed back above the $80 level. We remain bullish on the stock but traders might want to take a wait and see approach on new positions. The major averages still look a little vulnerable to more profit taking. Our seven-week target is the $89.50-90.00 range.

Picked on November 06 at $ 81.36
Change since picked: - 0.38
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 2.6 million

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Intel Corp. - INTC - close: 24.55 chg: +0.05 stop: 22.75

The SOX semiconductor index is still struggling under technical resistance at its simple 50-dma and 100-dma, which have converged near the 457 level. Meanwhile shares of INTC continue to inch higher. The stock got a boost after Banc of American started coverage on Intel with a "buy" rating and a $33 price target. We remain bullish on INTC but suspect there will be another pull back toward the $24.00 level again or at least the simple 50-dma near 24.20 where traders can buy the dip. Our year-end target is the $26.00-26.50 range.

Picked on November 06 at $ 23.99
Change since picked: + 0.56
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 51.6 million

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Legg Mason - LM - cls: 111.63 change: -0.44 stop: 106.95

There wasn't much change in LM today. The recently volatile stock traded in a sideways pattern today. Traders might want to watch for another dip to the $110 level and buy a bounce there. Our seven-week target is the $119-120 range.

Picked on November 02 at $111.69
Change since picked: - 0.06
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 904 thousand

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Rockwell Autom. - ROK - cls: 55.85 chg: -0.51 stop: 53.49

ROK pulled back with the rest of the market. If the markets continue to pull back we would watch for a stronger dip to the $55 level and use it as an entry point. Our seven-week target is the $61.00-62.00 range.

Picked on November 03 at $ 55.90
Change since picked: - 0.05
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 804 thousand

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Sears Holding - SHLD - cls: 119.42 chg: -4.63 stop: 121.99

The warning from Toll Brothers sent shivers through the market and investors began to worry about the consumer again. That pushed the retail sector lower and shares of SHLD lost 3.7%. We remain on the sidelines. Our plan is to buy a breakout from its current trading range. Our suggested trigger to buy calls is at $128.51. If SHLD falls under $114.00 we might want to think about buying puts instead.

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 12/07/05 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Bard C.R.- BCR - close: 62.85 change: -0.15 stop: 63.55

Hmm... lack of reaction to the market's decline today doesn't help our bearish case with BCR. The stock has marked its fourth day in a row churning sideways in a very tight range near the $63 level. We are not suggesting new plays at this time and if we do not see a move lower in the next couple of sessions we'll exit early!

Picked on October 26 at $ 61.70
Change since picked: + 1.15
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 745 thousand

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Career Educ. - CECO - cls: 35.09 chg: +0.27 stop: 35.01

CECO is moving the wrong way. The stock bucked the weakness in the markets today after being upgraded this morning. Shares spiked to $35.72 but could not hold their gains. The stock has technical resistance near the $36.00 level with its simple 50-dma and simple 200-dma are converging. This may prove to be a failed rally and a new bearish entry point but we're going to stick to our plan for now. Currently our trigger to buy puts is at $32.95 under support at the $33.00 mark. If triggered our target is the $30-29 range.

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/02/05 (confirmed)
Average Daily Volume = 1.3 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: 76.94 chg: +0.35 stop: n/a

We see no changes from our weekend update on ABC. There are less than two weeks left before November options expire. That means more conservative traders may want to adjust their target on the November strangle from $3.50 to $2.10(breakeven). The options in the November strangle were the November $80 calls (ABC-KP) and the November $70 puts (ABC-WN). We also suggested a December strangle and the options for the December strangle are the December $80 calls (ABC-LP) and the December $70 puts (ABC-XN). We are leaving our target at $5.00 for the December position. We are not suggesting new plays.

Picked on October 16 at $ 74.81
Change since picked: + 2.13
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

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Genentech - DNA - close: 93.90 chg: +0.79 stop: n/a

DNA helped lead the BTK biotech index into the green today. We see no changes from our weekend update. We still have seven weeks left before the December options expire. Our target was for a rise to $4.50-5.00 in the strangle and the December $95 calls (DWN-LS) look like they'll be the winning side.

Picked on October 20 at $ 84.83
Change since picked: + 9.07
Earnings Date 10/10/05 (confirmed)
Average Daily Volume = 3.9 million

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eBay Inc. - EBAY - close: 42.30 chg: +0.43 stop: n/a

Tuesday was a bullish day for EBAY. The stock broke through resistance at the $42.00 level. Shares hit a high of $43.36 and began to fade back toward broken resistance. Over the weekend we adjusted our target to breakeven at $1.05. The options in our strangle were the November $45 calls (XBA-KI) and the November $35 puts (XBA-WG).

Picked on October 18 at $ 40.42
Change since picked: + 1.88
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 18.3 million

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General Dynamics - GD - cls: 117.26 chg: +0.76 stop: n/a

GD displayed some relative strength today and closed in the green but failed to breakout over technical resistance at its simple 50-dma near 117.40. We recently adjusted our target for the strangle from $4.00 to breakeven at $2.00. The options in our strangle were the November $115 puts (GD-WC) and the November $125 calls (GD-KE).

Picked on October 09 at $119.59
Change since picked: - 2.33
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 713 thousand

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Harman Intl - HAR - cls: 103.05 chg: -1.50 stop: n/a

HAR pulled back to retest minor support (previous resistance) near $102 and only managed a meager bounce late this afternoon. Over the weekend we adjusted our target to $2.75, which is actually a loss compared to our cost of $3.80 but we're trying to recover some of our capital. The options in our strangle were the November $110 calls (HAR-KB) and the November $90 puts (HAR-WR).

Picked on October 18 at $100.80
Change since picked: + 2.26
Earnings Date 10/19/05 (confirmed)
Average Daily Volume = 739 thousand

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Hutchinson Tech. - HTCH - cls: 25.47 chg: +0.25 stop: n/a

We see no change from our weekend update on HTCH. The options in our strangle are the January $30 calls (UTQ-AF) and the January $20 puts (UTQ-MD). Our target is for a rise to $3.00. We are not suggesting new strangles at this time.

Picked on October 26 at $ 24.89
Change since picked: + 0.58
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 666 thousand

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Inamed Corp. - IMDC - close: 75.37 change: -1.46 stop: n/a

IMDC was looking overbought so we're not surprised to see some profit taking today. We are not suggesting new plays at this time. The options in our strangle are the December $75 calls (UZI-LO) and the December $65 puts (UZI-XM)). Our target is for a rise to $5.00 or more.

Picked on October 30 at $ 70.63
Change since picked: + 4.68
Earnings Date 11/01/05 (unconfirmed)
Average Daily Volume = 533 thousand

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Kos Pharma - KOSP - close: 57.44 chg: -0.42 stop: n/a

KOSP lost another 0.7% today and looks poised to test and probably breakdown under its simple 200-dma near 55.50. We are not suggesting new plays. There are only two weeks left before November options expire and conservative traders may want to seriously consider adjusting their targets lower. Our target is for a rise to $5.00 or more. Our hypothetical cost in the play is about $2.90. The options are the November $65 call (KQW-KM) and the November $55 put (KQW-WK).

Picked on October 20 at $ 59.80
Change since picked: - 2.36
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 460 thousand

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Lear Corp - LEA - close: 29.84 chg: -0.36 stop: n/a

LEA continues to trade in a very tight range near the $30.00 level. This provides a great opportunity to launch new strangle positions. We're suggesting an entry window of $30.50-29.50. The options in our strangle are the January $35 calls (LEA-AG) and the January $25 puts (LEA-ME). Try and keep your costs under $1.75. We are targeting a rise to $3.20 or more.

Picked on November 06 at $ 30.24
Change since picked: - 0.40
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 1.8 million

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Legg Mason - LM - cls: 111.63 chg: -0.44 stop: n/a

LM spent most of the session trading sideways between $111 and $112. We see no changes from our weekend update. The call side of our strangle is currently the winning side. Watch the November $110 calls (LM-KB). Our target is for a rise to $5.00 or more.

Picked on October 12 at $102.59
Change since picked: + 9.04
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 966 thousand

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Loews - LTR - close: 95.51 change: +0.90 close: n/a

LTR showing some strength with a gain on a down day for the markets. 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: + 5.57
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

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Microsoft - MSFT - close: 27.05 change: +0.04 stop: n/a

Shares of MSFT just marked their seventh gain in the last eight sessions. Today's strength may have been fueled by news that the company expects to sell about three million of its new Xbox 360 console games in the first ninety days following the November 22nd launch. 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: + 2.02
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 64 million

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O'Reilly Auto. - ORLY - close: 30.36 chg: -0.32 stop: n/a

ORLY hit some profit taking today but bulls where there to buy the dip near the $30 region. The target on our strangle play was for a rise to $1.20 but recently we've been suggesting that more conservative traders consider exiting around breakeven in the $0.75 region. The call side of our November strangle is the November $30 call (OQR-KF).

Picked on October 09 at $ 28.23
Change since picked: + 2.17
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 513 thousand

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Oshkosh Truck - OSK - close: 43.00 chg: -0.29 stop: n/a

We are very quickly leaning toward an early exit for this play. OSK is not making any moves toward a breakout from its trading range. Instead shares are doing just the opposite. The stock moved sideways in a very narrow 30-cent range today. We are not suggesting new strangles. 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: + 0.18
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 405 million

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Verifone Holdings - PAY - cls: 24.81 chg: -0.18 stop: n/a

We see no changes from our previous updates. The stock is overbought and due for a dip. The simple 10-dma near $23.50 is the most likely area to find support. The January $22.50 calls (PAY-AX) appear to be the winning side of our January strangle but our target is for a rise to $4.50.

Picked on October 12 at $ 19.98
Change since picked: + 4.83
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

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Protein Design Labs - PDLI - cls: 25.74 chg: -0.15 stop: n/a

There was little change in shares of PDLI today as the stock traded in a narrow range under the $26 level but above technical support at the 100-dma. 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: - 1.92
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 1.8 million
 

Dropped Calls

Building Mat. - BMHC - cls: 81.65 chg: -9.07 stop: 84.49

Ouch! BMHC has experienced quite a reversal of fortunes. Luxury homebuilder Toll Brothers (TOL) issued a warning for its 2006 sales forecast this morning. Investors panicked and sold anything home building related. Naturally BMHC was a big target since they supply materials to the homebuilders. Looking at today's reaction in the share price you'd think BMHC had warned. The stock gapped down to open at $84.56 and quickly dipped to $79.01 before rebounding. The move wiped out the last several days of gains and we've been stopped out at $84.49.

Picked on November 02 at $ 87.55
Change since picked: - 5.90
Earnings Date 10/25/05 (confirmed)
Average Daily Volume = 536 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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