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Call Updates

Chipolte Mex Grill - CMG - cls: 62.85 chg: -0.15 stop: 57.45

The bounce in stocks stalled on Thursday and this was evident in CMG's sideways consolidation. We remain bullish but traders might want to wait for a pull back toward $62-60 as a new entry point to buy calls. Our target is the $67.50-70.00 range. We do not want to hold over the late July earnings report. FYI: The P&F chart points to a $75 target.

Picked on June 18 at $ 61.76
Change since picked: + 1.09
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

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Cognizant Tech. - CTSH - close: 64.81 chg: -0.10 stop: 62.49

Traders bought the dip in CTSH near $63.50 this morning. Volume was pretty low on Thursday's session but CTSH looks poised to move higher. We'd wait for a move over today's high (65.05) before initiating new calls plays. Our target is the May highs in the $69.50-70.00 range.

Picked on June 24 at $ 65.05
Change since picked: - 0.24
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.4 million

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General Dynamics - GD - cls: 65.32 chg: -0.20 stop: 63.99

We are still concerned over the lack of follow through on GD's recent breakout over resistance. So far shares of GD are holding on to support at the $65.00 level, which is good. More aggressive traders can use the dip to $65.00 (or $64.50) as a new entry point. We are now suggesting that readers wait for a move over $65.75 or $66.00 before initiating new calls plays. A rise over $65.75 would be a breakout above its four-day trendline of lower highs. Our target is the $69.00-70.00 range.

Picked on June 18 at $ 66.12
Change since picked: - 0.80
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Google - GOOG - close: 399.95 chg: - 2.18 stop: 384.50

The final numbers don't show it but Thursday was a volatile day for GOOG. Looking at the intraday chart there was a spike down to $390.00 right in the middle of the session. Making matters even more unclear the "low" for the day was $388.00. We failed to see any news or even a mention of the intraday weakness. The big news for GOOG or at least about GOOG was a report that the company had sold its stake in rival Baidu.com. Shares of BIDU fell 4.9% on the news. If GOOG dips lower watch for the 50-dma and the $395 level to act as support. A bounce from either could be used as a new entry point - or wait for a new move over $405-406 as a new entry point to buy calls. Our target is the $440-445 range.

Picked on June 21 at $401.00
Change since picked: - 1.05
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

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Legg Mason - LM - close: 100.00 chg: -0.88 stop: 96.99

LM is still consolidating sideways but it's doing so with a bearish trend of lower highs. This is pulling the technical indicators toward bearish crossovers. We're still suggesting that readers wait for a move over $102.00 or $102.50 as a potential entry point to buy calls. More conservative traders may want to raise their stop loss toward yesterday's low near $98.40.

Picked on June 18 at $102.45
Change since picked: - 2.45
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Manpower - MAN - close: 65.24 change: -1.06 stop: 64.45

Lack of follow through on yesterday's bullish breakout is not a good sign for MAN. The stock erased yesterday's gains with a pull back to the $65.00 level. The MACD indicator on the daily chart remains bullish but it's bearish on the weekly chart. We're going to remain bullish with MAN above $65.00 but we probably would not suggest new call positions until shares traded back above the $66 level. Our target is the $69.85-70.00 range. The P&F chart now points to an $80.00 target so more aggressive traders may want to aim higher. We do not want to hold over the mid-July earnings report.

Picked on June 21 at $ 66.05
Change since picked: - 0.81
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 959 thousand

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Reynolds American - RAI - cls: 111.15 chg: -1.10 stop: 107.75*new*

After one week we are right back where we started with RAI. That's not such a big issue if you're trading stocks but with options that is a week's worth of time decay. We would still buy a bounce from the $110 level but we're raising our stop loss to $107.75, which is just under the simple 100-dma. More conservative traders might want to give more thought to putting their stop loss under the $110.00 mark. We are suggesting two targets. Our conservative target is $115.00. Our aggressive target is $119.00.

Picked on June 15 at $111.15
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

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United Tech. - UTX - close: 61.89 chg: +0.40 stop: 58.75

UTX is still flirting with a breakout over $62.00 and its simple 50-dma. Volume today was pretty low and that doesn't suggest a lot of confidence. So far UTX is trading with a short-term bullish pattern of higher lows but we would be ready for another pull back if the market's dip tomorrow. UTX should find initial support at its 10-dma near 60.65 and then additional support with its 100-dma near $60.00. More conservative traders might want to ratchet up their stop loss toward the $60.00 level. Our target remains the $64.00-65.00 range.

Picked on June 08 at $ 60.13
Change since picked: + 1.76
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Put Updates

Apple Computer - AAPL - close: 59.58 chg: +1.72 stop: 60.05

AAPL is starting to move away from us. Some positive analyst comments about the company's earnings and talk about Best Buy selling AAPL computers in their stores sparked some buying activity. More aggressive traders might want to buy calls on a breakout over $60.00 and target the simple 200-dma (64.83) or the descending 50-dma (64.35) as their short-term target. We are going to stick to our put strategy with a trigger to buy puts at $56.85 for now. If triggered our target will be the $50.50-50.00 range. We do not want to hold over AAPL's mid July earnings report.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 33.1 million

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Amgen Inc. - AMGN - close: 64.97 chg: -0.59 stop: 68.05

The BTK biotech index continued to decline with a 1.08% loss today. The daily chart for the BTK index shows the MACD nearing a new sell signal. Shares of AMGN were also weak today with a 0.89% loss. Volume came in pretty low, which doesn't help us much. We are not suggesting new plays at this time. Our target is the $62.65-62.25 range. We do not want to hold over the mid July earnings report.

Picked on June 05 at $ 67.48
Change since picked: - 2.51
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Carpenter Tech. - CRS - close: 103.04 chg: -1.66 stop: 105.01

There was no follow through on yesterday's bounce for CRS. The stock continues to consolidate sideways near the $100 level. We are going to stick to our plan with a trigger to buy puts at $99.25. We're going to keep CRS on the play list as a bearish candidate for now but if the stock closes over $105 we'll drop it. The P&F chart is still bearish and currently points to a $76 target.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/24/06 (unconfirmed)
Average Daily Volume = 651 thousand

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Digital River - DRIV - cls: 41.41 change: -0.10 stop: 42.05

DRIV is still trading under resistance at $42.00 and its 21-dma and 100-dma. We are not suggesting new bearish plays at this time.

Picked on June 19 at $ 39.45
Change since picked: + 1.96
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Express Scripts - ESRX - cls: 65.80 chg: -1.99 stop: 70.10

ESRX did not see any follow through on its bounce from Wednesday either. The stock is now bouncing around the $64-69 range. We're not suggesting new bearish plays. Shares of ESRX still have overhead resistance near $70.00. Our aggressive target is the $60.50 mark.

Picked on June 08 at $ 69.59
Change since picked: - 3.79
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.8 million

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Group 1 Auto - GPI - close: 53.27 chg: +0.73 stop: 58.46

We are starting to see an oversold bounce in GPI now. At this time we are strongly suggesting that traders consider locking in some profits here. We almost decided to close the play early today but our market bias is bearish for tomorrow. Our target is the $51.50-50.00 range.

Picked on June 11 at $ 58.46
Change since picked: - 5.19
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

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Intl. Bus. Mach. - IBM - cls: 77.19 chg: -1.11 stop: 80.05

Today's failed rally in IBM looks like a new bearish entry point to buy puts but shares do have short-term support in the $76.75 region. If you open new plays now consider using a tight stop above Wednesday's high. Our target is the $73.50-73.00 range. Please note that we will be running into a time crunch soon. We don't want to hold over the mid-July earnings report.

Picked on June 06 at $ 78.75
Change since picked: - 1.56
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

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IDEXX Labs - IDXX - close: 74.14 chg: -1.49 stop: 78.05 *new*

Target achieved. IDXX hit our conservative target at $75.25 this morning and then continued to plunge through support at $75.00 and its simple and exponential 200-dma's. Volume came in well above the daily average on today's sell-off, which is bearish. The close under support is also bearish but IDXX was on the rebound late this afternoon. Broken support normally turns into new resistance but we would not be surprised by a bounce back to the 10-dma near 76.60. We are going to lower our stop loss to $78.05. Our aggressive target is the $72.00 level.

Picked on June 12 at $ 77.95
Change since picked: - 3.81
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand

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Intuitive Surgical - ISRG - cls: 104.62 chg: +2.56 stop: 108.25

ISRG is still bouncing. This time the stock has closed above its 200-dma and is testing short-term resistance at its 10-dma. The move back above the 200-dma is a warning sign for us as bears. Shares of ISRG can be very volatile and a move past $105 could spark a rebound to the $110 level stopping us out. If ISRG reverses course then look for a new decline under $100 as a potential entry point to buy puts. The stock's volatility makes this an aggressive, higher-risk play. Our target is the $91.00-90.00 range. The P&F chart points to a $74 target.

Picked on June 19 at $102.45
Change since picked: + 2.17
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Oshkosh Truck - OSK - close: 48.85 chg: -1.34 stop: 51.51

Thursday proved to be a rough day for OSK. The stock was weak from the start this morning with a spike down back under $50.00 and its 200-dma. Shares closed with a 2.66% decline. We see this weakness and the two-day failed rally pattern as a new entry point to buy puts. Our target is the $45.50-45.00 range.

Picked on June 13 at $ 49.49
Change since picked: - 0.64
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 737 thousand

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Supertex - SUPX - close: 36.37 change: -0.06 stop: 37.05 *new*

SUPX is still consolidating sideways. The good news is that shares remain under their 10-dma and the 200-dma for now. We are growing a little bit concerned. If SUPX does not trade lower tomorrow then the weekly chart will have produced a bullish reversal-style candlestick with a bounce from round-number support near $35.00. If that occurs we would turn extra cautious and significantly tighten our stop loss. Right now we are lowering our stop loss to $37.05, which should be above the top edge of SUPX's three-week bearish channel.

Picked on June 19 at $ 35.99
Change since picked: + 0.38
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 263 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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