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Call Updates

Google - GOOG - close: 386.52 chg: +4.98 stop: 384.50

So far GOOG continues to show relative strength. The stock has resisted joining the NASDAQ in the index's new two-week plunge. GOOG actually gained 1.3% with an intraday bounce from the $378 level. Since we are still on the sidelines our biggest risk is an intraday spike over $400 that might hit our trigger and then reverse on us. Currently our strategy is to buy calls at $401.00. Should GOOG move higher and cross resistance near $400 we would hesitate to begin new positions if the major averages are still sliding lower.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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United Tech. - UTX - close: 59.45 chg: -0.17 stop: 58.75

Shares of UTX produced a failed rally near the $60.00 level and closed with a 0.28% loss versus a 0.8% decline for the Dow Jones Industrial Average. UTX seems to be trying really hard to hang on to its long-term trendline of support (about $59.00) but if the DJIA falls again tomorrow then we expect shares of UTX to hit our stop loss at $58.75. More conservative traders may want to exit early right here. If the market surprises us tomorrow and moves higher then we'd wait for a move past $60.65 before initiating new bullish plays.

Picked on June 08 at $ 60.13
Change since picked: - 0.86
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Amgen Inc. - AMGN - close: 66.94 chg: +0.05 stop: 69.55

AMGN seems to be experiencing another tug-of-war between the bulls and bears. The stock tried to bounce today but the rally failed (again) under its simple 50-dma. We would still consider new put positions right here but more conservative traders may want to wait for a new relative low (under $66.75 or $66.50) before initiating new plays. Our target is the $62.65-62.50 range. The P&F chart for AMGN points to a $60 target.

Picked on June 05 at $ 67.48
Change since picked: - 0.54
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Burlington Nrth.SntFe - BNI - cls: 71.69 chg: +0.44 stop: 77.55

We warned readers to watch for a bounce near $70.00. Shares of BNI dipped to $70.62 this morning before rebounding. The good news is that the stock is still trading inside its short-term (and intermediate term) pattern of lower highs. We would not suggesting new positions right here. Look for a drop under $70.00 (or the recent low near $69.49) or wait for a bounce and failed rally near $75.00 as the next entry point to buy puts. Our second, more aggressive target is the $67.00 level, near the bottom of its bearish channel and its 50% retracement level. Be advised that BNI is due to present at the upcoming transportation conference next week (June 15th).

Picked on June 05 at $ 75.64
Change since picked: - 3.95
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Barr Pharma - BRL - close: 50.58 chg: +0.07 stop: 54.25

The DRG drug index produced a short-term failed rally at its 200-dma today and looks poised to breakdown under support near 320. Meanwhile shares of BRL tried to bounce but closed off its best levels of the day. We remain bearish but suspect the stock could produce an oversold bounce near the $50.00 level. Our target is the $48.00-47.50 range.

Picked on June 05 at $ 52.20
Change since picked: - 1.62
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Express Scripts - ESRX - cls: 65.44 chg: -2.00 stop: 70.65 *new*

The sell-off continues in shares of ESRX following the recent breakdown under support at $70.00. The stock is very close to our first target at the $65.25 mark. Our suggested strategy was to sell half or more of your position at $65.25 and then sell the rest when ESRX hit $60.50. We would not suggest new bearish positions right here as ESRX might bounce near $65.00. A failed rally under $70.00 could be used as a new entry point. We are adjusting our stop loss to $70.65.

Picked on June 08 at $ 69.59
Change since picked: - 4.15
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Group 1 Auto - GPI - close: 56.26 chg: -0.21 stop: 60.65

GPI gapped down this morning but quickly rebounded to test old support now new resistance at the 50-dma. Shares actually spent most of the day consolidating in a narrow trading range above the $56.00 level. We do not see any changes from our new play description this past weekend. Our target is the $51.50-50.00 range.

Picked on June 11 at $ 58.46
Change since picked: - 2.20
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 76.93 chg: -0.09 stop: 81.05

Shares of IBM tried to bounce again this morning after some positive analyst comments. Unfortunately for shareholders the stock's rebound stalled (again) at the $78.00 level. If you look at the intraday chart IBM appears poised to move lower. We do not see any changes from our weekend update. The P&F chart points to $73.00 target. Our target is the $73.50-73.00 range.

Picked on June 06 at $ 78.75
Change since picked: - 1.82
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 76.39 chg: -0.92 stop: 80.05

IDXX continues to slip lower. Shares lost 1.19% with volume improving to almost average. The stock looks poised to hit its next level of support near $75.00. We are suggesting two targets. Consider selling half or more of your position at $75.25, which is above potential support at $75.00 and its simple 200-dma. We would then try and sell the rest of your position in the $72.00-70.00 range, near the bottom of its descending channel. The P&F chart is bearish and points to a $64.00 target.

Picked on June 12 at $ 77.95
Change since picked: - 1.56
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Oshkosh Truck - OSK - close: 48.43 chg: -1.17 stop: 52.05

Our play in OSK is now open. The stock confirmed yesterday's breakdown below support near $50.00 and its 200-dma. Shares lost 2.35% today on above average volume. Our trigger to buy puts was at $49.49. Now that the play is open our target is the $45.50-45.00 range.

Picked on June 13 at $ 49.49
Change since picked: - 1.06
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand

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Wynn Resorts - WYNN - close: 65.70 chg: -1.77 stop: 70.55*new*

Target achieved. WYNN dipped to $64.87 this afternoon before bouncing. Shares appear to be bouncing from their exponential 200-dma. We were suggesting two targets and our first target was the $65.25-65.00 range. We'd be careful about considering new plays here as the stock could bounce back toward the $70.00 level, which should now act as new resistance. A failed rally under $70 would be a new entry point. Our second target is the $61.00-60.00 range but we may adjust it higher as the simple 200-dma continues to climb. Please note we're adjusting our stop loss to $70.55.

Picked on June 05 at $ 69.11
Change since picked: - 3.41
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.2 million
 

Strangle Updates

None
 

Dropped Calls

VF Corp. - VFC - close: 62.56 change: -0.98 stop: 62.45

Watch out! VFC lost another 1.5% and broke down under short-term support near $63.00. With the markets in sell-off mode investors are starting to lock in profits in VFC. The MACD indicator has turned bearish. We are suggesting an early exit right here before VFC hits our stop loss.

Picked on June 01 at $ 63.51
Change since picked: - 0.95
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 545 thousand
 

Dropped Puts

Franklin Res. - BEN - close: 81.92 chg: -1.94 close: 88.55

Target achieved. Actually BEN has hit our second, lower, more aggressive target in the $82.50-81.50 range. The move was fueled by big volume about double the daily average volume. Driving the stock lower was a big sell-off in the broker-dealer sector. LEH started the sell-off yesterday with its earnings report and investors continued to sell following Goldman's (GS) earnings report today. Our play is closed but more aggressive traders may want to aim for the $80.00 region or even the October 2005 lows near $77.50 just be aware that BEN is near the bottom of its descending channel.

Picked on May 14 at $ 89.30
Change since picked: - 7.38
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Dril Quip - DRQ - close: 66.88 chg: -2.91 stop: 77.55

Target achieved. Actually DRQ has surpassed our aggressive target in the $67.50-67.00 range. The oil stocks were crushed yet again this time the selling was boosted by a slide in crude oil to under $70 a barrel. The play is closed and traders still holding puts should be careful. DRQ is testing support near its 100-dma and the $65-66 region (see chart).

Picked on June 07 at $ 74.77
Change since picked: - 7.89
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 390 thousand

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Garmin Ltd. - GRMN - close: 83.56 chg: -6.04 stop: 95.01

Target achieved. Tuesday proved to be an ugly day for shares of GRMN. It looks like investors were not happy with the company's comments at the Bear Stearns technology conference today. The stock opened at $89.01 and slid to $80.61 by late afternoon. Our target was the $81.50-80.00 range.

Picked on June 12 at $ 88.90
Change since picked: + 5.34
Earnings Date 08/002/6 (unconfirmed)
Average Daily Volume = 1.0 million

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Schlumberger - SLB - close: 54.57 chg: -2.01 stop: 65.01

Target achieved. Actually SLB has surpassed our target in the $55.75-55.50 range. The oil service stocks were hammered again with the OSX index losing 2.9%. Crude oil's drop under $70 a barrel didn't inspire any confidence. SLB fell 3.55% on strong volume. We're closing the play (at 55.75) but more aggressive traders may want to aim lower.

Picked on June 07 at $ 60.51
Change since picked: - 5.94
Earnings Date 07/21/06 (unconfirmed)
Average Daily Volume = 10.0 million
 

Dropped Strangles

None
 

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