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Play Updates

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Call Updates

Apple Computer - AAPL - close: 71.14 chg: -0.48 stop: 68.45

AAPL continues to consolidate under resistance at the $72.00 level. We do not see any changes from our previous updates. 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: 106.56 chg: -0.59 stop: 103.95

Friday is our last day for this play. We plan to exit on Friday near the closing bell to avoid holding over the earnings report on Monday. More conservative traders may want to exit early (tomorrow) on any bounce higher.

Picked on April 23 at $106.46
Change since picked: + 0.10
Earnings Date 05/08/06 (unconfirmed)
Average Daily Volume = 846 thousand
 

Put Updates

Affiliated Mangers - AMG - cls: 96.89 chg: -1.49 stop: 102.55

We expected AMG's oversold bounce to near the $100 level but shares displayed new relative weakness today and lost 1.5% on above average volume. We do see two obstacles for the bears. The simple 100-dma, currently at 93.93, 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. Our target is the $92.00-90.00 range.

Picked on May 01 at $ 97.45
Change since picked: - 0.56
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 637 thousand

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Amazon.com - AMZN - close: 33.96 chg: -0.42 stop: 36.51

AMZN posted another loss today but shares pared their losses with an intraday rebound off its lows. Today marks the fourth decline in a row and it may be time for an oversold bounce. Watch for the $35.00 level to offer short-term overhead resistance. Our target is the $31.00-30.75 range.

Picked on May 01 at $ 34.85
Change since picked: - 0.89
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Atheros Comm. - ATHR - close: 25.65 chg: +0.13 stop: 26.51

The semiconductor sector was one of the best performing sectors today yet there was barely any follow through in shares of ATHR. The stock remains under short-term resistance at $26.00. However, we're still urging caution. Yesterday's bullish reversal puts the shorts in danger! We're not suggesting new plays.

Picked on May 01 at $ 23.77
Change since picked: + 1.88
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 1.6 million

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Research In Motion - RIMM - cls: 74.93 chg: +0.49 stop: 79.01

RIMM is still bouncing after Monday's sell-off. Watch for the failed rally under $77.00 as the next bearish entry point to buy puts. Our target is the $71.00-70.00 range but more aggressive traders may want to aim lower.

Picked on April 30 at $ 76.63
Change since picked: - 1.70
Earnings Date 07/06/06 (unconfirmed)
Average Daily Volume = 5.8 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.)

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Fedex - FDX - close: 114.18 chg: -1.90 stop: n/a

Transports in general trekked higher today on a 3% pull back in oil prices but not so for FDX. Before the opening bell FDX was downgraded to an "equal weight" and the stock gapped lower. Bulls defended the stock near technical support at its rising 50-dma. Our suggested entry zone to open strangle positions was the $114.50-115.50 range. 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

Rackable Systems - RACK - close: 48.60 chg: +0.55 stop: 47.39

Continued weakness in the tech sectors helped push RACK toward the late April lows. The stock broke down under the $48.00 level and hit our stop loss at $47.39. Traders might want to consider bearish positions if the stock closes under the simple 50-dma.

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

Dropped Puts

Whole Foods - WFMI - close: 62.15 chg: +0.51 stop: 64.01

Time is up. It was our plan to exit this afternoon near the closing bell to avoid holding over WFMI's earnings report out after hours tonight. The company beat earnings estimates by a penny. The stock is trading higher after hours around $65.00 a share.

Picked on April 23 at $ 63.91
Change since picked: - 1.76
Earnings Date 05/03/06 (confirmed)
Average Daily Volume = 1.8 million

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XM Satellite Radio - XMSR - cls: 17.51 chg: -0.94 stop: 20.55

Target achieved. XMSR continues to sell-off. The stock dipped to $16.85 and closed with a 5% loss on very strong volume today. Our target was the $17.55-17.45 range.

Picked on May 01 at $ 19.65
Change since picked: - 2.14
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 7.9 million
 

Dropped Strangles

None
 

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