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Call Updates

Cigna - CI - close: 93.37 change: +0.18 stop: 91.99

Hmm... CI is struggling a bit to keep the momentum going on its bounce. Shares traded sideways all day yet volume came in slightly above average. We would still consider call positions on a bounce above the $93.00 level but right now, considering the weakness in the market, we'd prefer to look for a move over $94.50 or even $95.00 before initiating positions. Be advised that we do expect some resistance at the $100.00 mark so we're setting our target at $99.75-100.00. More aggressive traders may want to aim higher since the $105 level looks like more serious resistance and the P&F chart points to a $108 target.

Picked on May 16 at $ 94.52
Change since picked: - 1.15
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Getty Images - GYI - cls: 63.79 chg: -0.78 stop: 62.49

We are still on the sidelines with GYI. We want to catch a breakout over the $65.00 level. We are suggesting a trigger at $65.21, which is above Tuesday's high (65.15). If triggered then we'll target a rally into the $69.50-70.00 range. We're worried that the $70.00 level and the descending 50-dma, currently at 70.29, will act as overhead resistance. It is imperative that you use a stop loss. GYI has produced these bottoming formations before only to have the nascent rally get squashed, usually under the 50-dma.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 997 thousand

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Omnicom - OMC - close: 91.75 chg: +0.21 stop: 89.99

There are no changes here. We are still surprised by OMC's relative strength. If the market can rebound then maybe OMC can get back to making new relative highs. For the time being, in this environment, we're suggesting caution. We're not suggesting new positions. Our target is the $97.50-98.00 range. The P&F chart is very bullish with a $110 target.

Picked on May 15 at $ 92.05
Change since picked: - 0.30
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Amazon.com - AMZN - close: 32.61 chg: +1.00 stop: 34.85

AMZN saw some action today. Shares rallied to $33.64 before fading in the afternoon sell-off. If you read the news it sounds like the stock rallied after the story broke of the U.S. to reexamine AMZN's "one-click" patent. At the moment, this sounds negative to us should the government decide to reverse their status on this controversial patent. Technically the stock has produced a failed rally at its simple 10-dma. We are not suggesting new positions and more conservative traders may want to consider taking some money off the table. Our target is the $31.00-30.75 range.

Picked on May 01 at $ 34.85
Change since picked: - 2.24
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 6.3 million

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Apollo Group - APOL - close: 51.39 chg: -0.58 stop: 55.05

Our put play in APOL is starting to pick up some momentum. Shares are back under support and the neckline to its H&S pattern at $52.00. Volume is still a little bit too light but we're not going to complain. Our stop loss is at $55.05 but more conservative traders might want to consider one closer to $53.50. Our target is the $47.75-47.50 range.

Picked on May 17 at $ 51.75
Change since picked: - 0.36
Earnings Date 06/22/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 86.74 chg: -0.95 close: 92.55

Shares of BEN, like the XBD broker-dealer index, tried to bounce this morning but quickly failed. Shares spent the rest of the session drifting lower and the sell-off began to pick up speed late in the day. Volume continues to come in above average, which is bearish. Our target is the $85.00-84.50 range.

Picked on May 14 at $ 89.30
Change since picked: - 2.56
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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CB Richard Ellis - CBG - cls: 78.81 chg: +0.88 stop: 82.71

We were concerned about a big market bounce but it failed to materialize today. That left CBG's early morning rebound without much help. The stock has produced another failed rally with today's intraday reversal. The P&F chart points to a $68.00 target. Our target is the rising 100-dma, currently at 73.09. Since the 100-dma is a moving target we're going to use 73.25-72.75 as our exit range. Please note that we are cautiously suggesting new bearish positions. We are still concerned about an oversold bounce in the major averages that CBG will likely participate in. More conservative traders may want to wait for a decline under $77.50 before opening plays.

Picked on May 17 at $ 77.93
Change since picked: + 0.88
Earnings Date 05/02/06 (confirmed)
Average Daily Volume = 613 thousand

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IDEXX Labs - IDXX - close: 76.82 chg: -0.33 stop: 79.51

IDXX is still sinking under short-term resistance at its 10-dma. The trend of lower highs remains intact but we are concerned about another oversold bounce. The simple 200-dma, which we suspect will be technical support, is rising. We're going to adjust our target to the $74.00-73.50 range.

Picked on May 11 at $ 77.93
Change since picked: - 1.11
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 125 thousand

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Nucor - NUE - close: 104.80 chg: -0.60 stop: 112.81

Shares of NUE remain volatile but the bounce today failed under $108.50 near its simple 50-dma. This looks like another entry point to buy puts but remember this is a high-risk play. We would prefer to exit ahead of the 2-for-1 slit on June 1st merely because stocks tend to lose their volatility after a split. Our target is the $95.50-95.00 range.

Picked on May 17 at $105.40
Change since picked: - 0.60
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.5 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: 109.25 chg: -0.67 stop: n/a

Lack of volatility during today's sideways consolidation in FDX really seemed to drag down the premiums for the June $110 puts. We are not suggesting strangle positions at this time. The options involved in our strangle are 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 was about $2.60.

Picked on April 30 at $115.13
Change since picked: - 5.88
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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