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Call Updates

Peabody Energy - BTU - close: 64.93 chg: +0.17 stop: 59.85

We are suggesting that bulls turn defensive here with BTU. Shares traded to $65.98 on Friday morning before giving back most of its gains. Our target is the $66.00-67.00 range. While the MACD indicator on its daily chart has essentially produced a new buy signal the more short-term oscillators are suggesting that BTU is overbought and due for a pull back. Traders may want to seriously consider exiting here to protect their profits. Otherwise we face a potential dip to $62.50 or worse. We're not suggesting new plays at this time. FYI: The P&F chart points to a $90.00 target.

Suggested Options:
We are not suggesting new bullish positions in BTU at this time.

Picked on May 28 at $ 61.00
Change since picked: + 3.93
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 4.0 million

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Cummins Inc - CMI - close: 112.10 chg: -0.59 stop: 106.99

CMI experienced a little bit of consolidation on Friday but traders bought the dip near $110. The late day rebound probably helped the MACD finally produce a new buy signal. We don't have a lot of new comments for CMI. The trend is still upward albeit at a moderate pace. The Point & Figure chart is bullish with a $146 target. We would still buy calls with CMI above $110. The only change we would consider is that more conservative traders might want to raise their stop toward $108 or $109. Our target is the $116.00-117.00 range. FYI: for the chart readers out there we do note that CMI could be building the right shoulder to a bearish H&S pattern but it's somewhat hard to read right now.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 110.00 CMI-GU open interest=216 current ask $6.70
BUY CALL JUL 115.00 CMI-GC open interest= 59 current ask $4.10

Picked on May 31 at $110.21
Change since picked: + 1.89
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Halliburton - HAL - close: 76.78 chg: +1.63 stop: 69.99 *new*

Oil stocks were strong on Friday. The markets are uneasy over the defiant comments coming out of Iran in the ongoing drama regarding Iran's nuclear ambitions. Plus, new violence at a Nigerian oil structure added more cause for alarm. This helped push crude oil futures over $72 a barrel. The chart pattern for crude looks pretty bullish and we wouldn't be surprised to see it hit $75 a barrel soon as we approach the summer driving season. Meanwhile shares of HAL continued to rally with a 2.1% gain and the fresh MACD buy signal. Currently our target is the $80-82 range. We're going to adjust that to $79.50-80.00 because we see potential resistance on the P&F chart. More aggressive traders may want to aim for $82 considering the bullish moves in crude oil. We are going to adjust our stop loss to $69.99. Things to be aware of with HAL: the stock is due to split 2-for-1 on July 17th and the company has a two-day analyst meeting that begins on June 7th.

Suggested Options:
We are not suggesting new bullish positions in HAL at this time.

Picked on May 25 at $ 73.80
Change since picked: + 2.98
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.1 million

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Holly Corp. - HOC - close: 44.10 chg: +1.57 stop: 39.95 *new*

HOC is another oil-stock winner given the rise in crude oil on Friday. Shares added 3.7% to breakout over potential resistance near $42.50 and close at a new all-time high. Shares split 2-for-1 on Friday so our post-split target is the $44.50-45.00 range. We're adjusting our stop loss to $39.95. We remain bullish on oil stocks so our plan is to exit at our target and then look for a pull back to consider new bullish positions again. The Point & Figure chart currently points to a $59 target. More aggressive traders may just want to let HOC run as far as it can but you'll need to follow it with a tighter stop loss to protect your gains.

Suggested Options:
HOC is nearing our target. We are not suggesting new bullish positions at this time.

Picked on May 25 at $ 40.60 *split adjusted
Change since picked: + 3.50
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume = 475 thousand

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iShares Global Energy - IXC - cls: 106.35 chg: +1.56 stop: 99.49

The IXC ishares added 1.48% and closed over potential resistance at $105.00 and its simple 50-dma. Yet the ETF has not yet cleared resistance at its gap down from May 15th. Even though the MACD has produced a new buy signal we'd hesitate to open new call positions right here unless you tighten your stop loss. Our target is the $110.00-112.00 range. We are bullish on the oil sector and more aggressive traders may want to aim higher.

Suggested Options:
We are not suggesting new call positions on the IXC at this time although a move over $108 would be a breakout over the next level of significant resistance and we'd aim for the $112 region.

Picked on May 25 at $103.67
Change since picked: + 2.68
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 47 thousand

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Omnicom - OMC - close: 96.06 chg: -0.58 stop: 91.75

OMC pulled back on Friday but the consolidation was mild and shares traded sideways all session. The stock continues to show a lot of relative strength but OMC is short-term overbought and near our target so we're not suggesting new positions. Our target is the $97.50-98.00 range. More conservative traders may want to exit now to lock in a profit. Should OMC pull back we'd look for a dip to the 10-dma (93.75) or the 93.00 region. The P&F chart points to a $125.00 target.

Suggested Options:
We are not suggesting new bullish positions in OMC at this time.

Picked on May 15 at $ 92.05
Change since picked: + 4.01
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Priceline.com - PCLN - close: 32.22 chg: +0.22 stop: 29.85 *new*

PCLN is still creeping higher and the stock looks bullish given the breakout over $30.00 but we're worried about a breakdown in the INX Internet index. Currently the INX index appears to be consolidating sideways in a trend of lower highs and higher lows (pennant). The INX's MACD is suggesting the next move will be higher. That would be supportive for PCLN. We are not going to suggest new bullish positions in PCLN at the moment although another bounce in the $30-31 range could be used as a new entry point. Our target is the $34.50 level but we're thinking about adjusting it lower toward $33.50. More conservative traders may want to consider the earlier exit (33.50). The Point & Figure chart points to a $53 target. Please note we are raising the stop loss to $29.85.

Suggested Options:
We are not suggesting new bullish positions in PCLN at this time.

Picked on May 25 at $ 30.67
Change since picked: + 1.55
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 432 thousand

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Terex Corp. - TEX - close: 93.85 chg: +0.78 stop: 88.99

TEX posted another gain on Friday adding 0.8% and setting a new three-week high. The MACD indicator has produced a new buy signal. We would be careful here about initiating new plays. The stock is nearing what could be resistance at the $95.00 level. We'd watch for a dip and bounce near the $91.75-92.50 region as the next entry point to buy calls. Our target is the $99.50-100.00 range. More aggressive traders may want to target the highs near $103. The Point & Figure chart points to a $113.00 target.

Suggested Options:
We are not suggesting new bullish positions in TEX at this time.

Picked on June 1 at $ 92.65
Change since picked: + 1.20
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 719 thousand

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VF Corp. - VFC - close: 64.44 change: -0.28 stop: 61.84

Last week was pretty bullish for VFC. The stock finally broke out over resistance near $63.00 and the stock's MACD indicator has produced a new buy signal. The P&F chart is bullish and currently points to an $84 target. We would consider new positions with VFC above $63.50 but bear in mind that the $65 level might be resistance (the high on Friday was 64.90) and patient traders might get a opportunity to buy a dip back toward $63.00-63.50. Our target is the $68.00-70.00 range.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 60.00 VFC-GL open interest= 45 current ask $5.20
BUY CALL JUL 65.00 VFC-GM open interest= 71 current ask $1.90

Picked on June 01 at $ 63.51
Change since picked: + 0.93
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand
 

Put Updates

Apollo Group - APOL - close: 53.62 chg: +1.31 stop: 53.85 *new*

APOL has produced another failed rally at its descending 100-dma. This is the third time in the last six weeks. Technically this would make a low-risk entry point with a stop loss just above the 100-dma and we're going to adjust our stop loss to $53.85, which is about 5-cents above the 100-dma. More conservative traders may want to wait for a move back under $52.00 before considering new bearish positions. Our target is the $47.75-47.50 range. The $50.00 level is APOL's next level of support and we expect another bounce near $50.

Suggested Options:
We are suggesting the July puts but we plan to exit ahead of the late June earnings report.

BUY PUT JUL 55.00 OAQ-SK open interest= 46 current ask $3.60
BUY PUT JUL 50.00 OAQ-SJ open interest=574 current ask $1.25

Picked on May 17 at $ 51.75
Change since picked: + 1.87
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 90.69 chg: +0.04 close: 92.55

The bounce appears to have stalled in the broker-dealer and investment-related stocks in spite of all the positive analyst comments recently. The XBD broker-dealer index's rally on Friday reversed course producing a short-term bearish reversal. Meanwhile shares of BEN, while back above the $90 level, are not seeing much follow through higher. We would wait for another move under $89.50 or even $89.00 before considering new put positions. An alternative entry point would be a failed rally near technical resistance at its 50-dma and 200-dma near 92.00-92.50. Our target is the $85.25-85.00 range, which is a slight adjustment from our initial target.

Suggested Options:
We are not suggesting new put positions at this time. See play for details.

Picked on May 14 at $ 89.30
Change since picked: + 1.39
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Monster Worldwide - MNST - cls: 47.59 chg: -1.36 stop: 51.05*new*

MNST is showing a lot of relative weakness right now. The stock has failed to bounce with the rest of the market and is instead breaking down under support in the $49-50 region and its 100-dma. Volume on the sell-off has been above average. Volume on Friday's 2.7% decline was more than double the average. We are going to adjust our stop loss to $51.05. Our target remains unchanged at $45.25-45.00. More aggressive traders may want to aim lower. The P&F chart points to a $36 target.

Suggested Options:
We are not suggesting new positions in MNST at this time.

Picked on May 31 at $ 48.87
Change since picked: - 1.28
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Nucor - NUE - close: 53.90 chg: +0.52 stop: 56.05 *new*

We warned readers that NUE has been volatile and the stock continues to jump around even post-stock split. Shares spiked to $55.00 and its 50-dma on Friday morning before paring its gains. This is a high-risk, speculative put play for us and we might get stopped out next week. Several of NUE's peers are starting to look bullish. A sector rally next week will probably push NUE back into the $57-60 region. We're going to tighten our stop loss to $56.05. We're not suggesting new positions at this time.

Suggested Options:
We're not suggesting new put positions in NUE at this time.

Picked on May 31 at $ 52.64 *split adjusted
Change since picked: + 1.26
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.8 million

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SanDisk - SNDK - close: 55.13 chg: -0.10 stop: 60.26 *new*

SNDK continues to under perform the broader markets but the stock is short-term oversold and trying to bounce from its exponential 200-dma. If SNDK does bounce next week look for the 10-dma to offer immediate resistance near $58.00. Our target remains in the $53.00-52.50 range. We're not suggesting new positions at this time and more conservative traders may just want to lock in some profits right now. Please note that we are adjusting our stop loss to $60.26.

Suggested Options:
We are not suggesting new put positions on SNDK at this time.

Picked on May 23 at $ 58.98
Change since picked: - 3.85
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million
 

Strangle Updates

None
 

Dropped Calls

Bear Stearns - BSC - close: 137.28 chg: +1.28 stop: 131.49

Target achieved. Before the opening bell Prudential raised their estimates on BSC and the positive analyst comments helped shares of BSC gap higher this morning. Shares opened at $137.20 and spiked to $138.95. The stock tested overhead resistance near its 50-dma before paring its gains. Our target was the $137.25-138.50 range. We would be very careful if you're still long any call options as BSC is testing its trendline of resistance in addition to its 50-dma. You could also argue that BSC is short-term overbought from its May lows.

Picked on May 31 at $133.75
Change since picked: + 3.53
Earnings Date 06/15/06 (unconfirmed)
Average Daily Volume = 1.3 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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