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Call Updates

Arch Cap. Grp. - ACGL - cls: 59.11 chg: -0.15 stop: 58.49*new*

Tomorrow is our last day. We plan to exit near the closing bell tomorrow (Wednesday) to avoid holding over ACGL's earnings report expected on Thursday. More conservative traders may want to exit early tomorrow if the major averages continue to slide lower. We are raising our stop loss to $58.49.

Picked on April 03 at $ 58.15
Change since picked: + 0.96
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 195 thousand


Alliance Res. Ptrnrs - ARLP - cls: 41.29 chg: +0.61 stop: 37.95*new*

The high price of oil continues to drive new focus toward the coal stocks. ARLP posted another gain today and is nearing our target in the $42.00-42.50 range. It doesn't hurt that ARLP beat Wall Street's earnings estimates by 21 cents a share. We are raising our stop loss to $37.95.

Picked on April 23 at $ 38.98
Change since picked: + 2.31
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 101 thousand


Lehman Brothers - LEH - close: 150.95 chg: -3.05 stop: 147.75

The broker-dealer stocks finally hit some profit taking today. Shares of LEH gave up almost 2%. We recently warned readers that it might be prudent to lock in some profits near $155. Our concern was that LEH might pull back to the $150 level, which it has. The question now is whether or not the $150 level will hold up as support or will LEH dip to longer-term support at its rising 50-dma (146.64), in which case we'd be stopped out. Our suggested plan was to sell half the bullish position near $153 and the rest near $159. Don't forget that LEH has a stock split coming on May 1st.

Picked on March 22 at $144.61
Change since picked: + 6.34
Earnings Date 06/14/06 (unconfirmed)
Average Daily Volume = 2.0 million


Acc. Home Lenders - LEND - cls: 54.75 chg: -0.76 stop: 52.95

We don't see any change from our previous updates. A bounce from $54.00 (or $55) could be used as a new entry point. Our target is the $59.75-60.00 range. We do not want to hold over the May 2nd earnings report and that doesn't give us much time.

Picked on April 19 at $ 56.57
Change since picked: - 1.82
Earnings Date 05/02/06 (confirmed)
Average Daily Volume = 693 thousand


Progressive - PGR - close: 104.92 chg: -2.58 stop: 103.95

Today's sell-off is a mystery. We can't see any specific news to account for the sharp 2.4% decline. Nothing happened with rival Allstate (ALL) today. The only other insurance news we could find was a really strong earnings report from Chubb (CB). That makes PGR's relative weakness today a real warning sign. More conservative traders may want to exit early right here. After such a sharp pull back odds are shrinking that support at the $104.00 level will hold up. We're not suggesting new bullish positions. We have a two-week time frame as we do not want to hold over the May 8th earnings report.

Picked on April 23 at $106.46
Change since picked: - 1.54
Earnings Date 05/08/06 (unconfirmed)
Average Daily Volume = 846 thousand

Put Updates

Overseas Shipping - OSG - cls: 48.65 chg: +0.02 stop: 50.01

OSG is not moving much. Shares spent most of the session churning sideways. We are not suggesting new bearish plays at this time. We do not want to hold over the early May earnings report.

Picked on April 11 at $ 48.10
Change since picked: + 0.55
Earnings Date 05/02/06 (unconfirmed)
Average Daily Volume = 469 thousand


Whole Foods - WFMI - close: 62.06 chg: -1.00 stop: 66.05

WFMI continues to move lower following the recent breakdown. That's good news for the bears. The P&F chart looks pretty bearish with a $43.00 target. We are only going to aim for a decline into the $60.25-60.00 range but more aggressive traders may want to aim lower. The biggest challenge is probably the time frame. We do not want to hold over the May 3rd earnings report.

Picked on April 23 at $ 63.91
Change since picked: - 1.85
Earnings Date 05/03/06 (confirmed)
Average Daily Volume = 1.8 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.)


There are currently no strangle plays.

Dropped Calls

Cummins - CMI - close; 110.23 chg: -0.47 stop: 105.95

Target achieved. CMI displayed some relative strength this morning with a gap higher and a spike to $112.85 before reversing course. Our target was the $112.00-112.50 range. Don't forget that CMI is due to report earnings on Friday.

Picked on April 16 at $106.75
Change since picked: + 3.48
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 804 thousand

Dropped Puts


Dropped Strangles


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