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Call Updates

Apple Computer - AAPL - close: 71.89 chg: +0.00 stop: 68.45

Shares of AAPL tried higher this morning on news that a British Judge ruled that AAPL is within its legal rights to use an apple logo for its online iTunes store. The Beatles-owned record label Apple Corps is appealing the decision. Unfortunately for shareholders of AAPL the stock was unable to hold its gains and closed unchanged on the session. We do not see any changes from our weekend update. Our plan to buy calls over $72.25 remains our bullish strategy. More patient traders can keep an eye on a dip and bounce from the $70.00 level, which should be supported by the 100-dma and the 10-dma. Technical traders may find comfort in AAPL's Point & Figure chart with its bullish triangle breakout buy signal and its $101 target. Plus, AAPL appears to have created a bullish or inverse head-and-shoulders pattern over the last few months. Our target is the $77.45-80.00 range.

Picked on May 04 at $ 72.25
Change since picked: - 0.36
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 36.0 million

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Autoliv - ALV - close: 58.59 change: +0.44 stop: 54.99

The rally in ALV marked its fifth straight gain but we're concerned by the lack of volume. Overall the stock continues to look very strong but we suspect a pull back is in order. Our short-term target is the $60.00 level but our mid-June target is the $62.50-63.00 range.

Picked on May 04 at $ 57.53
Change since picked: + 1.06
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 513 thousand

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Bear Stearns - BSC - close: 141.78 chg: -0.42 stop: 137.99

BSC displayed some strength early on today but failed to hold its gains. We'd look for a dip back toward the $140 region. Aggressive traders may want to consider bullish positions on a bounce near $140. We are suggesting a trigger at $144.10 to buy calls. We do see some resistance at $148 but our target is going to be the $149.50-150.00 range. Our time frame is six weeks. Please note that we are suggesting two plays in the brokerage sector. We're not suggesting you play both of them. Find the stock that you like the best. The other candidate is GS.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/15/06 (unconfirmed)
Average Daily Volume = 1.2 million

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CDW Corp. - CDWC - close: 59.56 chg: +0.23 stop: 57.99

Uh-oh! We are not suggesting new call positions at this time. CDWC did continue higher this morning but the pull back from its highs is a failed rally. We would expect shares to dip toward the $59.00-58.50 region before moving higher. Thus we'd wait for the bounce to appear before considering new positions. Our target is the $64.00-65.00 range.

Picked on May 07 at $ 59.33
Change since picked: + 0.23
Earnings Date 04/25/06 (confirmed)
Average Daily Volume = 880 thousand

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Cleveland Cliffs - CLF - close: 96.33 chg: +2.82 stop: 89.95

Wow! We believe CLF looks strong but we honestly did not expect a breakout over resistance at $95.00 today. Our strategy over the weekend was to use a trigger at $95.11 to catch a breakout over resistance. The play is now open and our target is the $104.50-105.00 range although we do expect some resistance near $100. It wouldn't surprised us to see shares rally to $100 then pull back toward $95.00, which should now act as support. More conservative traders may want to take the quick exit/target near the $100 mark. The good news is that CLF has been climbing on above average volume for the last three days in a row.

Picked on May 08 at $ 95.11
Change since picked: + 1.22
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 692 thousand

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Goldman Sachs - GS - cls: 163.53 chg: -0.86 stop: 157.95

Shares of GS spiked higher this morning but the market malaise sucked the wind out of the stock's sales and shares fell back under the weight of Friday's rally. We would prefer to buy a bounce near the $160.00 level but another move over $165 could also be used as a new bullish entry point. The P&F chart points to a $172 target. We are going to target a rise into the $174.00-175.00 range. We'll plan to exit ahead of the June 13th earnings report. GS is one of two brokerage stocks currently in the newsletter. We suggest you pick the stock that you like best instead of trying to trade them both.

Picked on May 07 at $164.39
Change since picked: - 0.86
Earnings Date 06/13/06 (unconfirmed)
Average Daily Volume = 3.9 million

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Red Hat - RHAT - close: 32.27 chg: +0.92 stop: 28.81

RHAT displayed relative strength today and out performed its peers and the wider market with a 2.9% gain. Considering the market's lack of strength today readers may not want to chase RHAT here. Our target is the $34.75-35.00 range.

Picked on May 04 at $ 31.11
Change since picked: + 1.16
Earnings Date 06/27/06 (unconfirmed)
Average Daily Volume = 3.4 million
 

Put Updates

Amazon.com - AMZN - close: 34.69 chg: -0.35 stop: 36.51

AMZN tried to bounce higher today but ultimately fell back into the red and back under its simple 10-dma. We are not suggesting new bearish positions at this time and more conservative traders may want to think about tightening their stop loss. Our target remains unchanged at $31.00-30.75. The P&F chart remains bearish and points to a $17.00 target.

Picked on May 01 at $ 34.85
Change since picked: - 0.16
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Atheros Comm. - ATHR - close: 25.42 chg: -0.57 stop: 26.26*new*

We're still holding our breath with ATHR. The stock's recent oversold bounce appears to be fading but the stock continues to have potential support at the 50-dma and the $25.00 level. We're not suggesting new plays at this time and we are adjusting our stop loss to $26.26.

Picked on May 01 at $ 23.77
Change since picked: + 1.65
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 1.6 million

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Research In Motion - RIMM - cls: 75.15 chg: -0.35 stop: 79.01

We see no change from our weekend update on RIMM. Traders can watch for a failed rally in the $76.50-77.00 region as a new bearish entry point. We want to remind readers that RIMM can be volatile and this should be considered an aggressive, higher-risk play. Our target is the $71.00-70.00 range.

Picked on April 30 at $ 76.63
Change since picked: - 1.48
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: 119.06 chg: -0.25 stop: n/a

The Dow Jones Transportation index closed unchanged today in spite of news that the President of Iran sent President Bush a letter on possible "solutions". This news helped pull crude oil back under $70 a barrel but the transports failed to respond. This left FDX churning sideways under resistance at the $120 level. We're not suggesting new strangle positions at this time. 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: + 3.93
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

None
 

Dropped Puts

Affiliated Mangers - AMG - cls: 101.38 chg: +1.33 stop: 102.55

Before the opening bell Goldman Sachs upgraded shares of AMG to an "out perform". This sparked shares of AMG to gap open higher at $102.75, which is above our stop loss at $102.55. We are closing the play at the opening trade.

Picked on May 01 at $ 97.45
Change since picked: + 3.93
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 637 thousand
 

Dropped Strangles

None
 

Play Update Archives