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Call Updates

Apple Computer - AAPL - close: 71.62 chg: +2.02 stop: 68.45

A rebound across the major market indices and news that AAPL renewed contracts with the major recording studios for its iTunes online store helped fuel a rally in the stock. Shares of AAPL added 2.9% but failed to breakout over resistance at the $72.00 level. We remain on the sidelines. Our strategy is using a trigger to buy calls at $72.25. If triggered then we'll target a rally into the $77.45-80.00 range.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 36.0 million

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Progressive - PGR - close: 107.15 chg: -0.18 stop: 103.95

We do not see any change from our previous updates on PGR. PGR's 4:1 split is due May 19th but we plan to exit ahead of the May 8th earnings report. That only gives us three trading days before we exit therefore we're not suggesting new positions at this time. Our target is the $114.00-115.00 range.

Picked on April 23 at $106.46
Change since picked: + 0.69
Earnings Date 05/08/06 (unconfirmed)
Average Daily Volume = 846 thousand

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Rackable Systems - RACK - close: 48.05 chg: -2.67 stop: 47.39

As we feared yesterday the lack of follow through on the bullish breakout has shares of RACK looking a lot more bearish. Today's 5.2% decline was not fueled by anything specific we can find. The three-day pattern looks pretty bearish and we're concerned that RACK will test the 50-dma and given the lack of strength in the tech sector RACK might breakdown. We're not suggesting new plays and conservative traders may want to exit early!

Picked on April 30 at $ 51.39
Change since picked: - 3.34
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 825 thousand
 

Put Updates

Affiliated Mangers - AMG - cls: 98.38 chg: +0.93 stop: 102.55

The broker-dealer stocks produced a bit of an oversold bounce today. The XBD index added 1.29%. Shares of AMG bounced for a 0.9% gain on light volume. We would watch for the bounce to fail under the $100 level and use it as a new entry point to buy puts.
We do see two obstacles for the bears. The simple 100-dma, currently at 93.58, and the $95.00 level might offer some support. Conservative traders may want to exit near the 100-dma. We would expect a bounce near $95.

Picked on May 01 at $ 97.45
Change since picked: + 0.93
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 637 thousand

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Amazon.com - AMZN - close: 34.38 chg: -0.21 stop: 36.51

AMZN continues to show relative weakness despite news today that their jewelry and watch sales grew more than 100% in the first quarter. Our target is the $31.00-30.75 range.

Picked on May 01 at $ 34.85
Change since picked: - 0.47
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Atheros Comm. - ATHR - close: 25.52 chg: +1.75 stop: 26.51

Watch out! ATHR is reversing on us. The stock turned in a very strong 7.3% bounce on above average volume to close back above the 50-dma and support/resistance at the $25.00 level. This is bad news for any bears making Monday's decline look like a bear trap. More conservative traders, if you entered this morning, might want to consider exiting early or tightening your stop toward $26.00. We are not suggesting new positions.

Picked on May 01 at $ 23.77
Change since picked: + 1.75
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 1.6 million

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Research In Motion - RIMM - cls: 74.44 chg: +1.41 stop: 79.01

We expected a bounce and got one with RIMM's 1.9% gain today. Fortunately, the rally stalled near the $75.00 level, which as broken support should act as new resistance. Our target is the $71.00-70.00 range but more aggressive traders may want to aim lower. We are going to lower our stop loss to $79.01.

Picked on April 30 at $ 76.63
Change since picked: - 2.19
Earnings Date 07/06/06 (unconfirmed)
Average Daily Volume = 5.8 million

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Whole Foods - WFMI - close: 61.64 chg: +0.18 stop: 64.01 *new*

WFMI is still churning sideways as investors wait for the company's earnings report tomorrow. Our plan is to exit tomorrow at the closing bell to avoid holding over the report. We're going to tighten our stop loss to $64.01.

Picked on April 23 at $ 63.91
Change since picked: - 2.27
Earnings Date 05/03/06 (confirmed)
Average Daily Volume = 1.8 million

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XM Satellite Radio - XMSR - cls: 18.45 chg: -0.26 stop: 20.55

A better than expected earnings report from rival Sirius (SIRI) did nothing to help shares of XMSR today. XMSR lost another 1.38% on strong volume closing at a new relative low. Our target is the $17.55-17.45 range but shares are starting to look oversold so it may be time to look for a bounce before continuing lower.

Picked on May 01 at $ 19.65
Change since picked: - 1.20
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 7.9 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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Fedex - FDX - close: 116.08 chg: +2.48 stop: n/a

A rally in the transport stocks, in the face of higher oil prices, helped FDX to a 2.18% gain today. If you missed yesterday's entry point in the $114.50-115.50 zone you got another chance today. We were suggesting the June $120 calls and the June $110 puts. This is a bet that FDX will trade significantly north of $120 or under $110 by June option expiration. Our estimated cost is about $2.60.

Picked on April 30 at $115.13
Change since picked: + 0.95
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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