Option Investor
Play Updates

In Play Updates and Reviews

Printer friendly version

Call Updates

Komag - KOMG - close: 43.08 chg: +0.37 stop: 41.99

KOMG turned in another volatile session. Shares dipped to $41.25 before bouncing back. Volume was above average. We remain on the sidelines with a trigger to buy calls at $46.11.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million


Omnicom - OMC - close: 93.02 chg: +1.22 stop: 90.64

OMC has been showing relative strength for weeks and the stock out performed to the upside today with a 1.3% gain on very strong volume. Shares closed at new three-year highs. Our target is the $97.50-98.00 range. If you were looking for a new entry point this might be it! Consider adjusting your stop to the simple 10-dma near $91.89.

Picked on May 15 at $ 92.05
Change since picked: + 0.97
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

Put Updates

Amgen Inc. - AMGN - close: 68.07 chg: +1.22 stop: 70.01

Our new put play in AMGN has already turned against us. Shares dipped to $66.28 midday but the stock rebounded along with a 1.3% bounce in the BTK biotech index. We are not suggesting new positions at this time. We'll be watching the simple 50-dma (currently 69.70) to act as overhead resistance. Yesterday we suggested that conservative traders consider a stop loss near $68.50. That may still be a good idea.

Picked on May 23 at $ 66.85
Change since picked: + 1.22
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.8 million


Apollo Group - APOL - close: 50.92 chg: -0.11 stop: 54.45

We have been warning readers to expect a bounce near $50.00 and APOL delivered one today. Watch for shares to rebound toward $52 or its 10-dma before stalling. Our target is the $47.75-47.50 range near its early March lows.

Picked on May 17 at $ 51.75
Change since picked: - 0.83
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million


Franklin Res. - BEN - close: 86.85 chg: -0.93 close: 92.55

Brokerage and investment-related stocks continued lower on Wednesday. BEN lost just over 1% on above average volume. We are not suggesting new plays at this time. Our target is the the $85.00-84.50 range.

Picked on May 14 at $ 89.30
Change since picked: - 2.45
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million


Burlington NorSantaFe - BNI - close: 74.50 chg: -0.56 stop: 77.51

BNI tried to bounce again this morning but the rebound failed under its descending 10-dma. We're a little surprise that the drop in crude oil did not lend more strength to the transports today. The Dow Jones Transport index closed in the red after a volatile session. It's worth noting that the index is currently bouncing from its lows of the day. That would make us hesitate to open new put positions in BNI at the moment. Our BNI target is the $70.50-70.00 range.

Picked on May 23 at $ 75.06
Change since picked: - 0.56
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.0 million


IDEXX Labs - IDXX - close: 76.33 chg: -0.05 stop: 77.05*new*

IDXX continues to trade under a trend of lower highs and short-term resistance at its simple 10-dma. However, we're still worried about an oversold bounce so we're lowering the stop loss to $77.05. We are not suggesting new put positions at this time. Our target is the $74.00-73.50 just above the simple 200-dma. FYI: the P&F chart points to a $64 target.

Picked on May 11 at $ 77.93
Change since picked: - 1.60
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 125 thousand


Ipsco Inc. - IPS - close: 89.55 chg: -1.76 stop: 97.55

IPS managed to hit a new relative low at $86.77 this afternoon before bouncing back toward the $90 level. This remains an aggressive play and we're worried about an oversold bounce higher. More conservative traders may want to lock in some profits now and/or adjust their stop loss lower. We are not suggesting new positions. Looking at the intraday chart we'd expect a bounce back toward $92.00-92.50 soon. Our target is the $85.50-84.50 range. If you're a Point & Figure chart fan then you'll notice that the bearish target has dropped from $83 to $77 now.

Picked on May 18 at $ 93.95
Change since picked: - 4.40
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 459 thousand


3M Co. - MMM - close: 83.82 chg: +0.38 stop: 85.01

We would look for new weakness before initiating new put positions on MMM. Maybe a failed rally under $84.50 or another drop under $83.50 look like potential entry points. We're not looking for a big move just a drop into the $80.25-80.00 range. The $80.00 mark was resistance in the past so we expect it to act as new support.

Picked on May 23 at $ 83.44
Change since picked: + 0.38
Earnings Date 07/21/06 (unconfirmed)
Average Daily Volume = 3.2 million


Nucor - NUE - close: 104.55 chg: +2.23 stop: 108.41

The bounce in NUE today was fueled by pretty big volume. That's a warning sign for the bears. We do note that the rebound stalled at its descending 10-dma. We are not suggesting new bearish positions at this time. Our target is the $95.50-95.00 range. FYI: NUE is due to split 2-for-1 on June 1st.

Picked on May 17 at $105.40
Change since picked: - 0.85
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.5 million


SanDisk - SNDK - close: 58.99 chg: +0.01 stop: 63.05

We do not see any big changes from our SNDK new play description from Tuesday night. However, we'd probably wait and look for a failed rally near $60.00 or $61.50 before initiating new positions. Our target will be the $53.00-52.50 range. Be advised that SNDK is holding its annual shareholder meeting on Thursday, May 25th. There is no way to know if the meeting will produce any stock-moving news.

Picked on May 23 at $ 58.98
Change since picked: + 0.01
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million

Strangle Updates


Dropped Calls

Carpenter Tech. - CRS - cls: 109.94 chg: -0.64 stop: 111.45

A midday spike to $118.00 appears to have ended this play. CRS spent the first half of the day slipping lower from $114 to $106 when suddenly, without explanation, the stock spiked to $118.00. We did not believe it so we looked at the time and sales data. At 13:57:17 there was a trade at $118.00 for 200 shares. The trade before it was $110 and the trade after it was around $108.00. It looks like we've been hit by a fluke trade higher. If you could have been triggered in that one tick higher our trigger was at $116.51 and our stop was at $111.45. Consider this play closed.

Picked on May 24 at $116.51 *bad tick*
Change since picked: - 6.57
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 448 thousand


Deere Co - DE - close: 84.08 chg: -0.54 stop: 83.29

We warned readers yesterday that DE looked poised to move lower. Shares of DE continued lower following Tuesday's failed rally. The stock hit our stop loss at $83.29 closing the play.

Picked on May 23 at $ 84.71
Change since picked: - 0.63
Earnings Date 08/15/06 (unconfirmed)
Average Daily Volume = 2.1 million


Getty Images - GYI - cls: 64.96 chg: +0.58 stop: 63.39

Tuesday's failed rally looked ominous so we raised our stop loss to $63.39. That may have been too tight. Shares of GYI gapped open lower (64.38) and traded to $63.32 before bouncing. We've been stopped out but readers might want to watch for a move over $65.50 as a new bullish entry point. We'd target the 50-dma.

Picked on May 23 at $ 65.80 *gap higher*
Change since picked: - 1.42
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 997 thousand


Occidental Petrol. - OXY - cls: 93.67 chg: +0.56 stop: 91.99

Another volatile session for OXY may have left traders seasick. The stock gapped lower only to surge up toward $95 then reverse course and dip toward $91.00 only to reverse again and close in the green. We would have been stopped out at $91.99. A dip in crude oil prices did not help the bulls any today.

Picked on May 23 at $ 95.90
Change since picked: - 2.23
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 3.4 million

Dropped Puts

CB Richard Ellis - CBG - cls: 71.57 chg: -4.58 stop: 80.65

Target achieved. CBG turned in a very weak session losing 6% on big volume. The stock actually dipped to $68.51, which is well below our target in the $74.00-73.50 range.

Picked on May 17 at $ 77.93
Change since picked: - 1.78
Earnings Date 05/02/06 (confirmed)
Average Daily Volume = 613 thousand


Femsa Fomento - FMX - close: 84.22 chg: -3.25 stop: 90.05

Target achieved. Well that was a lot quicker than expected. FMX continued lower following yesterday's failed rally. The stock dipped to $81.79, which is near Monday's low. Our target was the $82.50-82.00 range. We would be very wary about new bearish positions. Shares now look poised to bounce toward $87.50 again.

Picked on May 23 at $ 87.47
Change since picked: - 3.25
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 415 thousand

Dropped Strangles

Fedex - FDX - close: 107.32 chg: -0.36 stop: n/a

Target achieved. Shares of FDX dipped to $106.00 this afternoon and that pushed the put side of our strangle to our target. We have been suggesting that readers exit if either option in our strangle traded at $4.50 or more. The June $110 puts (FDX-RB) hit a high of $4.70 today. Our estimated cost was $2.60.

Picked on April 30 at $115.13
Change since picked: - 7.81
Earnings Date 06/21/06 (unconfirmed)
Average Daily Volume = 1.4 million

Play Update Archives