Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Apple Computer - AAPL - close: 70.60 chg: -0.43 stop: 68.45

We've been warning about a dip toward the $70.00 region and AAPL hit $69.61 this afternoon. The good news, if you're feeling optimistic, is that traders bought the dip near $70 and that volume continues to come in light on this pull back. More aggressive traders may want to buy this bounce from $70.00. More conservative types may want to wait for a move over $71.50 or even $72.50 again before buying calls. Our target is the $77.45-80.00 range. We are still suggesting caution given the weakness in the NASDAQ and the tech sectors today.

Picked on May 04 at $ 72.25
Change since picked: - 1.65
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 36.0 million

---

Autoliv - ALV - close: 58.09 change: -1.18 stop: 54.99

ALV is performing on cue. We expected a dip back toward the $58.00 level today and we got it. The question now is where to next? Will ALV bounce from potential support at $58.00 or will it retrace lower toward support in the $56.00-56.50 region, or will it bounce from the simple 10-dma closer to $57.00? We would definitely wait for the bounce to begin before considering new positions. Our short-term target was the $60.00 level. Our mid-June target is the $62.50-63.00 range. We're not suggesting new positions at this time.

Picked on May 04 at $ 57.53
Change since picked: + 0.56
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 513 thousand

---

Bear Stearns - BSC - close: 140.88 chg: -0.34 stop: 137.99

There is no real change in BSC. The stock dipped to $139.20 but bounced with rising technical support at the 50-dma. More aggressive traders might want to use a follow through rebound from here as a new entry point to buy calls. We're still suggesting a trigger at $144.10. 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.

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

---

Cleveland Cliffs - CLF - close: 99.23 chg: -0.15 stop: 89.95

CLF's short-term rally is looking a little over extended. Yet instead of profit taking the stock merely churned sideways and closed with a minor loss today. Volume was below average. We see this as bullish but we are not suggesting new positions here. Wait and watch for a dip toward the $95 level, which should be support. Our target is the $104.50-105.00 range. FYI: The stock is due to split 2-for-1 on June 30th.

Picked on May 08 at $ 95.11
Change since picked: + 4.12
Earnings Date 04/26/06 (confirmed)
Average Daily Volume = 692 thousand

---

Goldman Sachs - GS - cls: 164.09 chg: -1.66 stop: 157.95

GS experienced a little bit of profit taking today. Volume still came in below average but a look at the intraday chart shows that a good chunk of the volume came in on an afternoon dip and bounce from $163.50 to $162.00 and back again. We are targeting a rise into the $174.00-175.00 range. We'll plan to exit ahead of the June 13th earnings report.

Picked on May 07 at $164.39
Change since picked: + 0.30
Earnings Date 06/13/06 (unconfirmed)
Average Daily Volume = 3.9 million

---

Red Hat - RHAT - close: 31.53 chg: -0.44 stop: 28.81

Larger rival CSCO tumbled more than 4% today on cautious guidance and this probably weighed on shares of RHAT. We would wait and watch for a bounce from the $31.00 level (maybe 30.00-30.50) as a new bullish entry point. Our target is the $34.75-35.00 range.

Picked on May 04 at $ 31.11
Change since picked: + 0.42
Earnings Date 06/27/06 (unconfirmed)
Average Daily Volume = 3.4 million
 

Put Updates

Amazon.com - AMZN - close: 34.16 chg: -0.68 stop: 36.01*new*

A down day for tech stocks was a good day for us. Shares of AMZN slipped 1.95% and are once again on the verge of breaking the $34.00 level. Traders might want to buy puts on a breakdown under $34.00 but keep in mind that our target is the $31.00-30.75 range. The P&F chart remains bearish and points to a $17.00 target. We are going to lower our stop loss to $36.01.

Picked on May 01 at $ 34.85
Change since picked: - 0.69
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

---

Atheros Comm. - ATHR - close: 23.15 chg: -1.86 stop: 26.26

The semiconductor SOX index's 2.49% decline helped lead the tech stock sell-off today. Shares of ATHR under performed its peers with a 7.4% breakdown. Volume was pretty strong on today's decline, which is bearish! We have been targeting the $20.50-20.00 range but we're going to change it to $21.00-20.50 to account for potential technical support at the 100-dma near $20.75.

Picked on May 01 at $ 23.77
Change since picked: - 0.62
Earnings Date 04/24/06 (confirmed)
Average Daily Volume = 1.6 million

---

Research In Motion - RIMM - cls: 73.68 chg: -2.75 stop: 79.01

RIMM's strength yesterday has been erased. The stock spiked down this morning back under the $74.00 level and shares closed back under the 100-dma for a 3.59% loss. While our outlook remains bearish we remain somewhat cautious here due to RIMM's volatility. Our target remains the $71.00-70.00 range. More conservative traders may want to exit near $71.70-71.60 due to the simple 200-dma.

Picked on April 30 at $ 76.63
Change since picked: - 2.95
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.)

---

Fedex - FDX - close: 118.09 chg: -1.33 stop: n/a

Another rise in crude oil to over $72.00 a barrel undermined strength in the transports. Shares of FDX fell 1.1%. 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: + 2.96
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives