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Call Updates

Cigna - CI - close: 123.50 change: +1.48 stop: 119.90

We are surprised by CI's relative strength today. The stock almost completely erased yesterday's decline. On Monday's close the stock look poised to move lower. We would wait for a new move over $125.00 before considering new bullish positions.

Picked on February 26 at $124.57
Change since picked: - 1.07
Earnings Date 02/08/06 (confirmed)
Average Daily Volume = 944 thousand

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Garmin Ltd. - GRMN - cls: 73.84 change: -1.37 stop: 67.75

Bears finally got some relief in GRMN today. The stock lost 1.8% after a four-day rally. Unfortunately for the shorts the relief may be short-lived. The stock bounced twice from the $72.50 region today and was on the rebound near the closing bell. Our target is the $77.00-78.00 range.

Picked on March 02 at $ 72.70
Change since picked: + 1.14
Earnings Date 02/22/06 (confirmed)
Average Daily Volume = 1.2 million

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Hartford Fin. Srv. - HIG - cls: 81.61 chg: -0.18 stop: 79.95

HIG traded in a narrow 70-cent range all day. We expect shares to continue lower and test support near $80.00 and its simple 200-dma. We are not suggesting new bullish plays at this time.

Picked on February 14 at $ 82.12
Change since picked: - 0.51
Earnings Date 01/26/06 (confirmed)
Average Daily Volume = 1.1 million

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Monster Wrldwde - MNST - close: 47.62 chg: -0.81 stop: 47.75

We see no change from our weekend update on MNST. We're suggesting a trigger to buy calls at $50.65. If triggered we will target a rally into the $54.85-55.00 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/03/06 (unconfirmed)
Average Daily Volume = 1.7 million

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Altria Group - MO - close: 71.79 chg: +0.29 stop: 71.85

We see no change from our weekend update on MO. Shares are still holding above technical support at their simple 200-dma. We are suggesting that traders wait for a breakout over $74.00 and use a trigger at $74.10 to buy calls. If triggered we'll target a rally into the $77.50-78.00 range.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = 8.1 million

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Occidental Petrol. - OXY - cls: 91.04 chg: -0.56 stop: 89.49

Oil stocks continued to sell-off today but OXY managed to hold above round-number support at the $90.00 level. We are not suggesting new bullish positions at this time.

Picked on February 21 at $ 92.00 *gap higher*
Change since picked: - 0.96
Earnings Date 05/09/06 (unconfirmed)
Average Daily Volume = 3.4 million

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Ultra Petrol. - UPL - close: 51.00 change: -0.15 stop: 51.95

There is no change from our Monday update on UPL. Aggressive traders might want to consider buying the bounce from the $50 region today. For now we'll stick to our trigger at $55.05. If triggered then we will target a quick rebound into the $59.50-60.00 range, which is under resistance at the 50-dma. More aggressive traders may want to use a wider stop loss.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/09/06 (unconfirmed)
Average Daily Volume = 1.7 million

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Valero Energy - VLO - close: 53.64 change: -1.14 stop: 53.49

There is no change from our weekend update on VLO. We're suggesting a trigger to buy calls at $57.55. If triggered we'll target a move into the $62.50-63.00 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = million
 

Put Updates

Apple Computer - AAPL - cls: 66.31 change: +0.83 stop: 70.11

AAPL is trying to bounce from the $65.00 level. Technicals may be negative but don't be surprised to see the bounce continue tomorrow, especially if the major indices are green. Watch for resistance at $68.00 and then again at $70.00. Our target is the $63.00-62.00 range, which should line up with the small head-and-shoulder pattern projection. More aggressive traders might want to aim lower like $60.

Picked on March 05 at $ 67.72
Change since picked: - 1.41
Earnings Date 04/19/06 (unconfirmed)
Average Daily Volume = million

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Intl. Bus. Mach. - IBM - cls: 80.29 chg: +0.29 stop: 81.05

There is no change from our weekend update on IBM. We suspect that the next move will be lower. We're suggesting that traders use a trigger to buy puts at $78.89, under the February low. If triggered then we'll target the $74.00-73.00 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/18/06 (unconfirmed)
Average Daily Volume = 6.2 million

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KB Home - KBH - close: 62.57 chg: -1.47 stop: 68.05

Homebuilders continued to sink today as the markets fret over rising interest rates. The DJUSHB home construction index lost 2.4% today. Shares of KBH fell 2.29% and on big volume. Our target is the $60.50-60.00 range.

Picked on March 06 at $ 64.75
Change since picked: - 2.18
Earnings Date 03/22/06 (confirmed)
Average Daily Volume = 1.9 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: 65.17 chg: +0.63 stop: n/a

We are not suggesting new strangle positions at this time. Our target is at breakeven ($8.20). Keep an eye on the March $70 puts (BGU-ON). More conservative traders may want to think about exiting early to recoup some of their capital.

Picked on December 18 at $ 80.95
Change since picked: -15.78
Earnings Date 02/07/06 (confirmed)
Average Daily Volume = 527 thousand

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Encana Corp. - ECA - close: 42.10 chg: -0.95 stop: n/a

We don't see any change from our previous updates. We are not suggesting new strangle positions. Our strangle 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: - 3.46
Earnings Date 02/15/06 (confirmed)
Average Daily Volume = 4.4 million

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Loews Corp. - LTR - close: 93.05 change: -0.84 stop: n/a

There is no change from our previous updates on LTR. We are not suggesting new strangle positions. Buying this strangle was a bet that LTR will be trading at more than $102 (above resistance) or less than $88 (under support) by March expiration. The options in our strangle are the March $100 calls (LTR-CT) and the March $90 puts (LTR-OR). Our estimated cost is $1.75.

Picked on February 13 at $ 95.72
Change since picked: - 2.67
Earnings Date 02/16/06 (confirmed)
Average Daily Volume = 513 thousand

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Ryland Group - RYL - close: 66.05 change: -1.23 stop: n/a

RYL lost another 1.8% today and is testing support near the $65.00 level. This looks like a spot for an oversold bounce. We are not suggesting new strangle positions at this time. 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: - 9.14
Earnings Date 01/24/06 (confirmed)
Average Daily Volume = 1.1 million
 

Dropped Calls

Ashland - ASH - close: 64.11 change: -1.13 stop: 64.75

Oil-related issues continued to sell-off today with another decline in crude oil futures as the markets worried about the upcoming OPEC meeting and inventory levels. Shares of ASH broke down under support at the $65.00 level and hit our stop loss at $64.75. There is still no word on what caused the unusual spike higher last Friday that hit our trigger and opened the play. Without the spike we would never have been triggered.

Picked on March 03 at $ 67.11
Change since picked: - 3.00
Earnings Date 01/31/06 (confirmed)
Average Daily Volume = 689 thousand

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Cameco - CCJ - close: 35.74 change: -2.17 stop: 35.29

There was no specific news to account for CCJ's big decline today. Almost anything mining related was hit with significant selling pressure. The XAU index lost 2.3% but shares of CCJ fell more sharply closing with a 5.7% decline. Shares of CCJ tried to hold at technical support of its simple 50-dma but the stock traded below it on an intraday basis and hit our stop loss at $35.29. We have been stopped out for a loss. We remain very long-term bullish on the company.

Picked on March 06 at $ 38.51
Change since picked: - 2.77
Earnings Date 02/01/06 (confirmed)
Average Daily Volume = 2.7 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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