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Call Updates

Apple - AAPL - close: 75.51 change: +0.51 stop: 69.99

Our speculative bounce play in AAPL turned in a meager gain today but still performed better than most of the tech sectors. We do not see any change from our new play description from Monday night and would still consider bullish positions here. Yet given some of the negative earnings news after the bell today the Nasdaq's path of least resistance may be down tomorrow. Don't be surprised if AAPL see some profit taking on Wednesday. Any bounce above $70 could be used as a new bullish entry point but if you are a conservative trader then we'd probably wait until Thursday to see if there is any follow through higher. Our target is the $84-85 range. Some traders may just want to sit on the sidelines until AAPL can trade over $76.60 (Monday's high).

Picked on January 30 at $ 75.00
Change since picked: + 0.51
Earnings Date 01/18/06 (confirmed)
Average Daily Volume = 27.1 million

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Aetna - AET - close: 96.80 change: +3.48 stop: 89.99

AET displayed lots of relative strength on Tuesday. The stock climbed steadily throughout the session and closed with a 3.7% gain on top of a breakout over the $94 level and its 50-dma. The P&F chart has a new bullish buy signal that points to a $114 target. Our target is the $99.00-100.00 range.

Picked on January 30 at $ 94.05
Change since picked: + 2.75
Earnings Date 02/09/06 (confirmed)
Average Daily Volume = 1.7 million

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Carter's Inc. - CRI - close: 67.99 chg: -0.07 stop: 64.75

CRI is still consolidating sideways. Watch for a dip to the simple 10-dma as a new bullish entry point. The P&F chart is bullish and points to an $85 target. Our target is the $72.50-75.00 range. We do not want to hold over the late February earnings report.

Picked on January 25 at $ 66.62
Change since picked: + 1.37
Earnings Date 02/20/06 (unconfirmed)
Average Daily Volume = 313 thousand

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Express Scripts - ESRX - close: 91.29 chg: -0.36 stop: 87.45

ESRX slid to the $90.50 level this afternoon but traders were ready to buy the dip. Unfortunately, from the looks of the trading action in the last hour ESRX may turn lower again tomorrow. We would buy any bounce in the $90.00-90.75 region. Broken resistance near $90 should now act as new support. Our target is the $99.50-100.00 range. We do not want to hold over the February 22nd (unconfirmed) earnings report.

Picked on January 29 at $ 92.42
Change since picked: - 1.13
Earnings Date 02/22/06 (unconfirmed)
Average Daily Volume = 2.1 million

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KB Home - KBH - close: 76.20 chg: -1.31 stop: 73.30

Homebuilders trended lower today and KBH lost 1.69% erasing its recent gains. Watch to see if shares find support at its rising 50-dma near 73.85. We would wait for a bounce before considering new positions. Our target is the $84.00-85.00 range. Short-term traders can target the January highs near $82.00. The P&F chart is bullish and points to a $93.00 target.

Picked on January 29 at $ 76.30
Change since picked: - 0.10
Earnings Date 03/16/06 (unconfirmed)
Average Daily Volume = 2.0 million

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SFBC Intl. - SFCC - close: 22.05 chg: +0.54 stop: 19.90*new*

SFCC meandered sideways for the first half of the session before turning higher. The stock displayed relative strength by closing with a 2.5% gain. We are going to try and reduce our risk by raising the stop loss to $19.90. Our target is the $24.90-25.00 range. More conservative traders may want to exit in the $24.50-24.65 zone since the 38.2% Fibonacci retracement of its October-December sell-off is about $24.65.

Picked on January 25 at $ 20.92
Change since picked: + 1.13
Earnings Date 02/22/06 (unconfirmed)
Average Daily Volume = 2.5 million
 

Put Updates

Biotech HOLDRs - BBH - close: 194.50 chg: +1.38 stop: 200.11

The BTK biotech index turned higher today and this lead the BBH to a minor gain. The BBH rallied late in the session but failed near the $196 level. More conservative traders may want to consider lowering their stops toward $198. We're going to leave ours at $200.11 for now. We would not suggest new put positions at this time. Our target for the BBH is the $187.00-185.00 range.

Picked on January 20 at $195.78
Change since picked: - 1.28
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 539 thousand

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Johnson Controls - JCI - cls: 69.24 chg: -1.28 stop: 72.01 *new*

JCI started the session off weak in a move that looks like a failed rally near the 10-dma. The trend continues to look bearish but we're watching the simple 100-dma near 68.25 for short-term support. Our target is the $65.50-65.00 range. Please note that we're lowering the stop loss to $72.01.

Picked on January 25 at $ 69.90
Change since picked: - 0.66
Earnings Date 01/20/06 (confirmed)
Average Daily Volume = 955 thousand

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XM Sat.Radio - XMSR - close: 26.18 chg: -0.25 stop: 28.51

XMSR continues to look weak. The stock's 0.9% decline today looks even more bearish once you consider that the stock received new analyst coverage with an "out perform" rating this morning. Volume continues to rise on the sell-off. Today's volume was almost five times the daily average. Our target is the $21.00-20.00 range. We do not want to hold over the (unconfirmed) February 9th earnings report making this a short-term play. FYI: the P&F chart points to a $19.00 target.

Picked on January 30 at $ 26.43
Change since picked: - 0.25
Earnings Date 02/09/06 (unconfirmed)
Average Daily Volume = 5.0 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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Building Materials - BMHC - cls: 79.17 chg: -1.47 stop: n/a

We do not see any change from our weekend update on BMHC. Earnings are coming up around February 7th and will probably produce more volatility. We are not suggesting new strangle positions at this time. The options in our strangle play are the March $90 calls (BGU-CR) and the March $70 puts (BGU-ON). Our estimated cost is $8.20. Our target is $12.50 by March expiration.

Picked on December 18 at $ 80.95
Change since picked: - 1.78
Earnings Date 02/07/06 (unconfirmed)
Average Daily Volume = 527 thousand

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Encana Corp. - ECA - close: 49.86 chg: +0.63 stop: n/a

ECA continued to rally on Tuesday despite a pull back in crude oil futures. The stock added 1.27% and looks poised to breakout over the $50.00 level. We're not suggesting new positions. Our strategy involves the April $50 calls (ECA-DJ) and the April $40 puts (ECA-PH). Our estimated cost is $3.45. We are aiming for a rise to $5.95.

Picked on January 10 at $ 45.56
Change since picked: + 4.30
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Google Inc. - GOOG - close: 432.66 chg: +5.84 stop: n/a

Tomorrow could be a very volatile day in shares of GOOG. Wall Street analysts were looking for the company to report earnings of $1.76 a share. It looks like GOOG missed it big time with profits of $1.54 a share. The company blames a much higher than expected tax rate on the quarter's revenues. Instead of the estimated 30% tax rate it was closer to 41.8%. Taxes were not the only reason GOOG missed and there seemed to be some confusion over how big of a miss it really was depending on whom you listened to. It seems that part of the problem was the revenue number. GOOG reported net revenue of $1.29 billion and evidently they missed the whisper revenue numbers on the street. The after hours trading saw shares of GOOG fluctuate wildly with a low near $362 and as of this update GOOG was trading around $375. We can expect a gap down tomorrow morning. Be sure to have your exit target/sell-order ready to go on the put side of our strangle. Our current strategy involves the Feb. $450 calls and the Feb. $420 puts. We're aiming for a rise to $60.00. You might want to adjust your target up or down depending on where GOOG opens tomorrow morning. Our estimated cost was $40.10.

Picked on January 29 at $433.49
Change since picked: - 0.83
Earnings Date 01/31/06 (confirmed)
Average Daily Volume = 11.1 million

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Ryland Group - RYL - close: 72.36 change: -1.45 stop: n/a

RYL is rolling over under resistance as expected. This looks like a good spot to consider new put positions but this is a strangle play and we're not suggesting new positions. Our play involves the April $80 calls (RYL-DP) and the April $70 puts (RYL-PN). Our estimated cost is $7.00. Our target is $12.00.

Picked on January 22 at $ 75.19
Change since picked: - 2.83
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

Freeport Mcmoran - FCX - cls: 64.25 chg: +0.95 stop: 56.85

Target achieved. FCX received an analyst upgrade today and the company announced a 50-cent cash dividend. The news helped boost the stock higher and shares hit a high of $64.78. Our target was the $64.75-65.00 range.

Picked on January 24 at $ 60.22
Change since picked: + 4.03
Earnings Date 01/17/06 (confirmed)
Average Daily Volume = 2.6 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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