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Call Updates

Amerada Hess - AHC - close: 131.58 chg: -1.13 stop: 124.49

Oil stocks hit some profit taking today after a better than expected weekly inventory report for gas and distillates. This prompted shares of AHC to dip to $128.50 before rebounding back above the $130 level. The intraday bounce reinforces AHC's short-term trend of higher lows. We see no changes from our previous updates. Our seven-week target is the $139.85-140.00 range.

Picked on November 16 at $128.49
Change since picked: + 3.09
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume = 1.9 million

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Apache Corp. - APA - close: 68.79 chg: -0.60 stop: 64.95

The rally in APA also stalled a bit due to the oil and gas inventory numbers today but the pattern remains bullish. We would suggest new plays over $69.00 or more conservative traders may want to wait for a move over the $70.00 mark before buying calls. A breakdown under the 50-dma near $68 would be bad news. Our target is the $75-76 range by year-end.

Picked on November 22 at $ 69.05
Change since picked: - 0.26
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume = 3.7 million

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Goldman Sachs - GS - close: 134.08 chg: +1.48 stop: 126.49*new*

New highs! Shares of GS pushed past its September 2000 highs to score and close at new all-time highs today. We expect the stock to continue marching higher into its mid-December earnings report. Our target is the $139-140 range. We are raising the stop loss to $126.49.

Picked on November 20 at $131.58
Change since picked: + 2.50
Earnings Date 12/15/05 (unconfirmed)
Average Daily Volume = 3.6 million

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Hovnanian - HOV - close: 51.07 change: +0.02 stop: 44.45

The rally in some of the homebuilders took a holiday on Wednesday. Shares of HOV churned sideways. We see no changes from our previous updates. Our target is the $54.50-55.00 range. We do not plan on holding past HOV's earnings report.

Picked on November 21 at $ 49.25
Change since picked: + 1.82
Earnings Date 12/07/05 (unconfirmed)
Average Daily Volume = 1.5 million

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Intl. Bus. Mach. - IBM - cls: 88.80 chg: +0.81 stop: 84.85 *new*

Hardware stocks continued to tick higher and IBM added 0.9% as it broke through minor resistance at the $88 level. Our target is the $89.90-90.00 range and IBM almost hit our target this afternoon. We would not be surprised to see IBM challenge the $90 level on Friday. Be ready to exit. We're raising the stop loss to $84.85.

Picked on November 15 at $ 85.25
Change since picked: + 3.55
Earnings Date 01/16/06 (unconfirmed)
Average Daily Volume = 5.6 million

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NovAtel Inc. - NGPS - close: 30.91 chg: -0.55 stop: 27.75

It's not uncommon for a stock to pull back and retest broken resistance as support. That's what NGPS looks like it might do with a dip back toward the $30.00-30.50 region. Traders can be ready to buy the bounce as a new entry point. Our target is the $35.00-36.00 range by year-end.

Picked on November 21 at $ 30.45
Change since picked: + 0.46
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume = 292 thousand

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Phelps Dodge - PD - cls: 129.11 chg: +0.39 stop: 123.45

PD did manage an intraday move over the $130 level but failed to hold its gains. We remain bullish on the stock with its six-week trend of higher lows. 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: - 2.14
Earnings Date 01/26/06 (unconfirmed)
Average Daily Volume = 2.7 million

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Polaris Ind. - PII - close: 49.56 change: +0.46 stop: 45.95

PII continues to rally and added another 0.9% with shares approaching round-number resistance near $50.00. Our target is the $54-55 range.

Picked on November 21 at $ 48.47
Change since picked: + 1.09
Earnings Date 01/12/06 (unconfirmed)
Average Daily Volume = 467 thousand

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Rockwell Autom. - ROK - cls: 56.90 chg: +0.05 stop: 54.80

We see no change from our previous update on ROK. The stock's recent relative weakness is not a great sign for a continuation of the rally. We will consider exiting early if shares trade under the $56.25-56.00 range. We are not suggesting new plays.

Picked on November 03 at $ 55.90
Change since picked: + 1.00
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 804 thousand

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Walter Inds. - WLT - close: 51.39 change: -1.04 stop: 45.95

Shares of WLT hit a little bit of profit taking today. Broken resistance at $50.00 should now act as new support. Watch for a bounce from $50 as a new bullish entry point. 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: - 0.11
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.)

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AmerisourceBergen - ABC - cls: 79.28 chg: +0.03 stop: n/a

We see no changes from our previous update on ABC. The stock is nearing round-number resistance at the $80.00 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: + 4.52
Earnings Date 11/03/05 (confirmed)
Average Daily Volume = 900 thousand

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Amer. Eagle Out. - AEOS - cls: 24.90 chg: -0.17 stop: n/a

The rally in AEOS appears to have stalled under its exponential 200-dma near $25.70. 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: - 0.56
Earnings Date 11/15/05 (confirmed)
Average Daily Volume = 3.6 million

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Abercrombie&Fitch - ANF - close: 63.31 chg: -0.69 stop: n/a

ANF met some minor profit taking on Wednesday. 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: + 4.33
Earnings Date 11/15/05 (confirmed)
Average Daily Volume = 2.7 million

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Chicago Merc. Exchg. - CME - cls: 386.67 chg: +4.76 stop: n/a

A positive press release from the company helped push CME up another 1.24% today. Here's what CME said, "CME, the world's largest and most diverse financial exchange, today reported that year-to-date trading volume in its CME E-mini equity index options exceeded four million at 4,006,366 contracts as of yesterday. This represents a 727 percent increase over the total of 487,727 CME E-mini equity index options traded in 2004." 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: +10.77
Earnings Date 01/24/06 (unconfirmed)
Average Daily Volume = 879 thousand

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D.R.Horton - DHI - close: 36.67 chg: -0.22 stop: n/a

The rally in homebuilding stocks took the day off. Shares of DHI spent much of the session trading sideways. 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: + 4.11
Earnings Date 11/16/05 (confirmed)
Average Daily Volume = 3.2 million

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Four Seasons - FS - close: 50.40 chg: +0.27 stop: n/a

FS continues to churn sideways along the $50.00 mark. We see no changes from our previous update on FS. 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: - 4.25
Earnings Date 11/10/05 (confirmed)
Average Daily Volume = 319 thousand

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Hutchinson Tech. - HTCH - cls: 27.02 chg: +0.25 stop: n/a

HTCH did manage to breakout over resistance near $27 and hit new two-month highs today. 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: + 2.13
Earnings Date 11/01/05 (confirmed)
Average Daily Volume = 666 thousand

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Lear Corp - LEA - close: 28.44 chg: +0.19 stop: n/a

LEA continues to languish in its long-term bearish trend but currently the short-term pattern is sideways. We see no changes from our previous updates on LEA. 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: - 1.55
Earnings Date 10/26/05 (confirmed)
Average Daily Volume = 1.8 million

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Loews - LTR - close: 97.80 change: +0.10 close: n/a

There isn't much change in shares of LTR and its bullish up trend looks like it is in jeopardy. We're not suggesting new plays. 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: + 7.86
Earnings Date 10/27/05 (confirmed)
Average Daily Volume = 602 thousand

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Verifone Holdings - PAY - cls: 22.85 chg: -0.50 stop: n/a

PAY continues to slip back toward support near its 200-dma and the $22.00 level. We are not suggesting new strangle positions. 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: + 2.87
Earnings Date 11/18/05 (unconfirmed)
Average Daily Volume = 259 thousand

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Protein Design Labs - PDLI - cls: 28.67 chg: +0.19 stop: n/a

We see no changes from our previous update on PDLI. 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: + 0.97
Earnings Date 11/01105 (confirmed)
Average Daily Volume = 1.8 million

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Spectrum Brands - SPC - close: 18.90 change: +0.52 stop: n/a

SPC's oversold bounce continues and the stock is testing resistance at the bottom of its gap down near $19.25. The $19.25 and $20.00 levels should act as overhead resistance. In the news today SPC announced it is selling its Nu-Gro fertilizer technology and Canadian professional products divisions to Agrium (source: Reuters). We are not suggesting new strangle positions at this time. 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: - 1.54
Earnings Date 11/10/05 (confirmed)
Average Daily Volume = 576 thousand

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Questar Corp. - STR - close: 76.71 chg: -0.70 stop: n/a

STR is still stuck in its sideways consolidation. Our suggested entry window for strangles was the $75.50-77.00 (the closer to $75.00 the better) range. 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: + 0.46
Earnings Date 01/26/05 (unconfirmed)
Average Daily Volume = 716 thousand

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Valero Energy - VLO - close: 100.58 chg: -1.80 stop: n/a

Bingo! VLO pulled back from Tuesday's spike higher and declined into our suggested entry window of $101.00-99.00 today. The dip to $100 (low today was 100.01) was a great entry point to launch new strangles. We're suggesting the January $110 calls (VLO-AB) and the January $90 puts (VLO-MR). Our estimated cost is $5.85. We are aiming for a rise to $9.50. Post split that target will change to $4.75 as our cost will adjust to $2.825. VLO will split 2-for-1 in December.

Picked on November 21 at $101.00
Change since picked: - 0.42
Earnings Date 01/30/06 (unconfirmed)
Average Daily Volume = 10.7 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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