Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Amerada Hess - AHC - close: 130.40 chg: +1.76 stop: 121.49

A minor bounce in crude oil prices helped push the oil and oil service sectors higher. The two groups were some of the best performing sectors on Monday. Shares of AHC enjoyed some strength and added 1.3% while breaking out back above the $130.00 mark. We remain bullish but it's worth noting that AHC does have some overhead resistance in the 131.50-131.60 region. Our seven-week target is the $139.85-140.00 range.

Picked on November 16 at $128.49
Change since picked: + 1.91
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume = 1.9 million

---

Goldman Sachs - GS - close: 132.41 chg: +0.83 stop: 124.99

The XBD broker-dealer index hit another new all-time high on Monday with its 1.45% gain. Shares of GS lagged behind with a 0.6% gain but did set a new one-year high. If you look at the intraday chart you can see where bulls bought the dip at $130.50. We see no changes from our weekend update. Our target is the $139-140 range. We plan to exit ahead of the company's December 15th earnings.

Picked on November 20 at $131.58
Change since picked: + 0.83
Earnings Date 12/15/05 (unconfirmed)
Average Daily Volume = 3.6 million

---

Hovnanian - HOV - close: 50.00 change: +1.64 stop: 44.45

We have been triggered. The homebuilding sector turned in a strong session with the DJUSHB home construction index rising more than two percent. Shares of HOV out performed most of its peers and added 3.39% and closing right at the $50.00 mark. Our trigger to buy calls was at $49.25 so the play is now open. Our target is the $54.50-55.00 range. We do not plan on holding past HOV's earnings report. In the news HOV announced it will present at the NYSSA homebuilding industry conference on December 1st.

Picked on November 21 at $ 49.25
Change since picked: + 0.75
Earnings Date 12/07/05 (unconfirmed)
Average Daily Volume = 1.5 million

---

Intl. Bus. Mach. - IBM - cls: 87.29 chg: -0.48 stop: 83.99

The rally in IBM took a breather today. Shares pulled back about half a percent. We're not surprised. The stock looked a little overbought. The 10-dma near $85.00 and broken resistance at $85 should now act as new support. A bounce from this region can be used as a new entry point. Our target is the $89.90-90.00 range. FYI: IBM is one of the many component makers for MSFT's new XBox 360 that launches tonight at midnight. A big opening for this new XBOX could underpin both shares of MSFT and IBM.

Picked on November 15 at $ 85.25
Change since picked: + 2.04
Earnings Date 01/16/06 (unconfirmed)
Average Daily Volume = 5.6 million

---

Intel Corp. - INTC - close: 25.25 chg: -0.05 stop: 23.45

News that Intel and Micron are joining forces to make flash memory chips sent stocks like SanDisk (SNDK -16.6%) tumbling. Meanwhile share of INTC are not moving much higher as the stock continues to struggle under its 100-dma near $25.50. The SOX semiconductor index also stalled its decline with a fractional gain today. We are not suggesting new bullish call positions at this time. Traders interested in starting new plays can watch for a potential dip back toward the $24.50-24.75 region. Our year-end target is the $26.00-26.50 range.

Picked on November 06 at $ 23.99
Change since picked: + 1.26
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 51.6 million

---

NovAtel Inc. - NGPS - close: 30.78 chg: +0.97 stop: 27.75

Strength in the NASDAQ today helped propel shares of NGPS up and out of its three-week trading range. The stock broke out over resistance at the $30.00 mark and hit our trigger to buy calls at $30.45 opening the play. Volume came in well above average suggesting more strength to come. Our target is the $35.00-36.00 range by year-end.

Picked on November 21 at $ 30.45
Change since picked: + 0.33
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume = 292 thousand

---

Phelps Dodge - PD - cls: 129.44 chg: -1.75 stop: 123.45

Some of the copper-mining stocks stalled today. Shares of PD did rebound off its lows of the session but we would not consider new bullish positions until PD trades back above $130.00 or even $131 depending on your own risk profile. Our target is the $139.90-140.00 range. The Point & Figure chart for PD points to a $150.00 target. More conservative traders may want to target the October high near $138.50.

Picked on November 18 at $131.25
Change since picked: - 1.81
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume = 2.7 million

---

Rockwell Autom. - ROK - cls: 57.32 chg: -0.17 stop: 54.80

ROK's relative weakness today is not a welcome sign. The lack of participation in today's rally should have traders wondering. More conservative types may want to tighten their stops! We are targeting a move into the $61-62 range.

Picked on November 03 at $ 55.90
Change since picked: + 1.42
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 804 thousand

---

Walter Inds. - WLT - close: 52.55 change: +1.05 stop: 45.95

WLT added another two percent today on top of last week's gains but we noticed that volume dropped off significantly today. There is still a good chance that shares may pull back and retest the $50 level as support before climbing much higher. Our target is the $57-58 range by December 31st. More conservative traders can aim for an exit near $55.

Picked on November 20 at $ 51.50
Change since picked: + 1.05
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 927 thousand
 

Put Updates

None
 

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.)

---

AmerisourceBergen - ABC - cls: 78.95 chg: +0.95 stop: n/a

ABC has broken out above resistance in the $78.00 and $78.75 levels. It looks like the stock is poised to make a run at the $80 mark. We are not suggesting new strangle positions. Our current strangle involves the December $80 calls (ABC-LP) and the December $70 puts (ABC-XN). Our estimated cost was $2.80. Our current target is for a rise to $5.00 in the strangle.

Picked on October 16 at $ 74.81
Change since picked: + 4.14
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

---

Amer. Eagle Out. - AEOS - cls: 24.22 chg: +0.56 stop: n/a

Retail stocks were not exempt from the market rally today and AEOS rebounded for a 2.3% gain back over the $24 level. At this time we're not suggesting new strangle positions. The current strangle has an estimated cost of $2.35 with the January $27.50 calls (AQU-AY) and the January $22.50 puts (AQU-MX). We are targeting a rise to $4.70.

Picked on November 13 at $ 25.47
Change since picked: - 1.28
Earnings Date 11/15/05 (confirmed)
Average Daily Volume = 3.6 million

---

Abercrombie&Fitch - ANF - close: 62.94 chg: +1.93 stop: n/a

ANF turned in a strong session adding more than three percent to close at a new three-month high. We are not suggesting new strangle positions at this time. The options in our strangle are the January $65 calls (ANF-AM) and the January $55 puts (ANF-MK). Our estimated cost was $5.15. We're looking for a rise to $8.50.

Picked on November 13 at $ 59.67
Change since picked: + 3.27
Earnings Date 11/15/05 (confirmed)
Average Daily Volume = 2.7 million

---

Chicago Merc. Exchg. - CME - cls: 383.41 chg: +7.51 stop: n/a

Boy, you got your choice of entry points today. We suggested an entry window of $373-377 for our January strangle. Well shares of CME lived up to its volatile past and dipped to $372.15 today before rebounding higher and closing with a 2% gain at $383. We're not suggesting new strangle positions at this time. Our current play involves the January $400 calls (CMJ-AK) and the January $350 puts (CMJ-MA). Our estimated cost was $26.70. We're aiming for a rise to $40.00 in the strangle before January options expire.

Picked on November 20 at $375.90
Change since picked: + 7.51
Earnings Date 01/24/06 (unconfirmed)
Average Daily Volume = 879 thousand

---

D.R.Horton - DHI - close: 36.14 chg: +1.33 stop: n/a

The homebuilding stocks turned in another strong session with the DJUSHB index added more than two percent. Shares of DHI out performed many of its peers with a 3.8% rally to breakout over its simple 100-dma. We are not suggesting new strangles at this time. Our current play involves the January $35 calls (DHI-AG) and the January $30 puts (DHI-MF). Our estimated cost was $3.15. We're aiming for a rise to $6.00.

Picked on November 13 at $ 32.56
Change since picked: + 3.58
Earnings Date 11/16/05 (confirmed)
Average Daily Volume = 3.2 million

---

Four Seasons - FS - close: 50.49 chg: +0.39 stop: n/a

FS could not escape the upward pressure from today's rally and added 0.77%. However, there was something odd about today's trading in FS. The stock traded the entire session in a very narrow 20-cent range. Actually shares of FS have done this before, trade in a very narrow range, and this sort of action tends to precede a new breakout (up or down). We are not suggesting new strangles at this time. The options in our strangle were the January $60 calls (FS-AL) and the January $50 puts (FS-MJ). Our estimated cost was about $2.60. We're aiming for a rise to $5.00 or more.

Picked on November 08 at $ 55.37
Change since picked: - 4.88
Earnings Date 11/10/05 (confirmed)
Average Daily Volume = 319 thousand

---

Hutchinson Tech. - HTCH - cls: 25.33 chg: -0.11 stop: n/a

Lack of movement has us thinking we need to bail out of this strangle early. We'll give HTCH just a few more days to make a move! We are not suggesting new strangles at this time. The options in our strangle were the January $30 calls (UTQ-AF) and the January $20 puts (UTQ-MD). Our estimated cost was $1.65. We have adjusted our initial target from $3.00 to breakeven at $1.65 since the post-earnings reaction was not as big as expected.

Picked on October 26 at $ 24.89
Change since picked: + 0.44
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 666 thousand

---

Lear Corp - LEA - close: 28.89 chg: +0.00 stop: n/a

All the news regarding the future of GM probably makes investors nervous with LEA too. Shares of LEA rallied this morning but couldn't hold its gains. We are no longer suggesting new strangle positions. The options in our strangle are the January $35 calls (LEA-AG) and the January $25 puts (LEA-ME). We are targeting a rise to $3.20 or more.

Picked on November 06 at $ 30.24
Change since picked: - 1.35
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 1.8 million

---

Loews - LTR - close: 97.72 change: -0.08 close: n/a

We see no changes from our weekend update on LTR. The options in our strategy are the December $95 calls (LTR-LS) and the December $85 puts (LTR-XQ). Our estimated cost is about $3.05. We plan to exit if our strangle rises to $5.00 or if shares of LTR hit 99.90.

Picked on October 23 at $ 89.94
Change since picked: + 7.78
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

---

Verifone Holdings - PAY - cls: 23.79 chg: +0.09 stop: n/a

Hmm... normally we would have expected PAY to rebound more strongly with the market in rally mode. Our remaining strangle involves the January $22.50 calls (PAY-AX) and the January $17.50 puts (PAY-MW). Our estimated cost was $2.60 and we're aiming for a rise to $4.50 or more.

Picked on October 12 at $ 19.98
Change since picked: + 3.81
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

---

Protein Design Labs - PDLI - cls: 28.57 chg: +0.77 stop: n/a

The bullish reversal in PDLI continues and the stock added 2.7% today following Friday's breakout over the 50-dma. We are not suggesting new strangle positions. The options in our strangle are the December $30 calls (PQI-LF) and the December $25 puts (PQI-XE). Our estimated cost was at $1.80. We'll plan to sell if either side rises to $3.25.

Picked on October 30 at $ 27.70
Change since picked: + 0.87
Earnings Date 11/01105 (confirmed)
Average Daily Volume = 1.8 million

---

Spectrum Brands - SPC - close: 18.10 change: +0.30 stop: n/a

SPC is still bouncing from its oversold condition but we expect the bounce to struggle as is nears resistance in the $19.00 and $20.00 levels. Our estimated cost for this strangle was $1.25. The options in our suggested strangle are the December $22.50 calls (SPC-LX) and the December $17.50 puts (SPC-XW). We are aiming for a rise to $2.50 or more.

Picked on November 08 at $ 20.63
Change since picked: - 2.34
Earnings Date 11/10/05 (confirmed)
Average Daily Volume = 576 thousand

---

Questar Corp. - STR - close: 75.60 chg: -0.65 stop: n/a

STR provided two dips to the $75 level today and both would have been a great entry point to open new strangle positions. Our own suggested entry window was/is the $75.50-77.00 range but the closer to $75.00 the better. Our strangle involves the January $80 calls (STR-AP) and the January $70 puts (STR-MN). Our estimated cost was $5.10 and we're aiming for a rise to $9.50 or more.

Picked on November 20 at $ 76.25
Change since picked: - 0.65
Earnings Date 01/26/05 (unconfirmed)
Average Daily Volume = 716 thousand
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives