Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Armor Holdings - AH - close: 54.43 chg: -0.35 stop: 51.99

AH was looking pretty strong last Friday but shares have spent the last two sessions failing to breakout past the $55.00 level and on low volume. It's as if investors are waiting for something. Could it be Friday's employment report? Our previous update suggested readers buy a bounce from $54.00 as an entry point. We got a chance to do that this morning. We remain bullish with AH above its simple 10-dma but more conservative traders may want to wait for a move past $55.00 first. Another concern is potential resistance at the sliding 50-dma still overhead. Our target is the $59.50-60.00 range. We do not want to hold over the July earnings report.

Picked on July 02 at $ 54.83
Change since picked: - 0.40
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 656 thousand

---

Allegheny Tech. - ATI - cls: 68.61 chg: -0.72 stop: 64.95

Wednesday morning traders bought the dip in ATI at $67.40 near its simple 50-dma. Right now we'd wait for a most past $69.25 or 70.50 as a new entry point to buy calls. The stock might just trade sideways near the $70 level as the markets wait for Friday's economic reports. Our target is the $75.00-76.00 range. The P&F chart currently points to an $83 target. We do not want to hold over the July earnings date.

Picked on June 29 at $ 70.01
Change since picked: - 1.40
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 3.8 million

---

Burlington N.Santa Fe - BNI - cls: 78.68 chg: -0.64 stop: 74.90

BNI experienced some profit taking this morning like most stocks and was slowly on the rebound by Wednesday's closing bell. We remain optimistic but would wait for a move past $79.00 and probably the $80.00 mark before initiating new call positions. Our target is going to be the $84.90-85.00 range although more aggressive traders might want to aim for the April highs near $87.50. The P&F chart currently points to a $93 target. We do not want to hold over the July earnings report.

Picked on June 29 at $ 79.09
Change since picked: - 0.41
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.3 million

---

Bear Stearns - BSC - cls: 140.92 chg: -1.90 stop: 134.95*new*

BSC turned in a big session on Monday's shortened trading day with a breakout over $140.00 and a close near $143. Today's market drop at the open sent BSC lower to fill the gap from Monday. Shares consolidated sideways around the $140 level. Ideally we'd like to see broken resistance at $140 act as new support but it would not surprise us to see BSC consolidate lower and test its rising 10-dma (currently near 137.50). A bounce from $140 or from the 10-dma could be used as a new entry point to buy calls. Our target is the $144.50-147.50 range. Please note that we're raising the stop loss to $134.95.

Picked on June 29 at $137.51
Change since picked: - 3.41
Earnings Date 09/14/06 (unconfirmed)
Average Daily Volume = 1.5 million

---

Chipolte Mex Grill - CMG - cls: 59.35 chg: -1.04 stop: 57.99*new*

Warning! The consolidation in CMG is growing weaker. The close under $60.00 is bearish and the close under its 50-dma is even more bearish. Shares are testing technical support at the bottom of their rising channel. We're raising our stop loss to $57.99. More conservative traders may just want to exit now to cut their losses.

Picked on June 18 at $ 61.76
Change since picked: - 2.41
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 384 thousand

---

Google - GOOG - close: 421.46 chg: - 1.74 stop: 394.99

Monday proved to be a positive session for GOOG with shares rising toward $424. Traders appeared to use the Wednesday morning weakness as a new entry point to buy the dip. We remain optimistic, especially with the close over $420 but we're not suggesting new positions right here. More conservative traders may want to seriously consider taking some profits right here! There is potential resistance in the $425-430 region with its trendline of lower highs. We are aiming for the $440 level.

Picked on June 21 at $401.00
Change since picked: +20.46
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

---

Goldman Sachs - GS - close: 150.95 chg: -1.50 stop: 146.45

We are still sitting on the sidelines with GS. The stock was strong on Monday but shares have still not broken out past the $153.00 level. Our suggested trigger to buy calls is at $153.05. Aggressive traders may want to jump in early with a bounce from the $150 level. We're suggesting two targets. Our conservative target is the $157.50 level. Our aggressive target is going to be the $164.00 level. If shares of GS can trade over $154 it will produce a new buy signal on the P&F chart.

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/12/06 (unconfirmed)
Average Daily Volume = 5.0 million

---

MicroStrategy - MSTR - cls: 96.46 change: -2.19 stop: 91.74

MSTR continued higher on Monday but that strength was reversed today. Wednesday's session looks like a bearish failed rally for MSTR. At this time we would expect the stock to retest broken resistance and hopefully new support at the $95.00 level. Wait and watch for a bounce from $95.00 as a new bullish entry point to buy calls. Our target is the $108.50-110.00 range. We do not want to hold over the late July earnings report. The stock can be volatile sow we're using a wide (aggressive) stop loss.

Picked on July 02 at $ 97.52
Change since picked: - 1.06
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 333 thousand

---

Reynolds American - RAI - cls: 114.36 chg: -0.63 stop: 109.69

One of the first things we noticed on Wednesday was that volume for RAI came in below average. Chart readers will also notice that traders bought the dip near its rising 10-dma. This may be a new bullish entry point but if you're initiating new positions here you might want to use a tighter stop loss. RAI has already hit our conservative target at $115.00. Right now we're aiming for our aggressive target at the $119.00 level.

Picked on June 15 at $111.15
Change since picked: + 3.21
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 632 thousand

---

Union Pacific - UNP - close: 92.12 chg: -0.11 stop: 87.45

Traders were quick to buy the dip near $90.50 this morning (actually they bought the dip right at its 10-dma, 90.39) and we see today's rebound as a new bullish entry point to buy calls. Our target is the $96.00-97.00 range. The P&F chart is bullish with a bounce from support and a $110 target. We do not want to hold over the July earnings report.

Picked on June 29 at $ 91.54
Change since picked: + 0.58
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 1.6 million

---

Wynn Resorts - WYNN - close: 72.34 chg: -1.36 stop: 69.75

WYNN is trading pretty close to how we expected it might. We expected a dip and the stock produced one this morning. The good news is that traders bought the dip near its rising 10-dma. We see this rebound as a new bullish entry point to buy calls. Our target is the $79.50-80.00 range. The P&F chart has a spread triple-top breakout buy signal with an $86 target. We do not want to hold over the early August earnings report.

Picked on June 29 at $ 73.64
Change since picked: - 1.30
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.0 million
 

Put Updates

Apple Computer - AAPL - close: 57.00 chg: -0.95 stop: 60.05

AAPL has spent the last three days churning sideways in a $1.75 range. Thus far shares remain in a bearish pattern of lower highs but we feel somewhat hesitant to suggest new plays here. It might pay off to wait for a new decline under $56.00 before initiating new put positions. AAPL came out today with news of a new iMac for less than $1,000 to be available before the back-to-school shopping season begins. Naturally, this sounds like a positive for the company.

Picked on June 28 at $ 56.85
Change since picked: + 0.15
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 33.1 million

---

Amgen Inc. - AMGN - close: 65.49 chg: -0.30 stop: 67.25

We are not suggesting new plays in AMGN at this time. However, the stock has failed to breakout past its 21-dma for the last three days in a row. Aggressive traders might want to consider new puts if AMGN trades under $65.00 again - although if you're opening new positions now we'd suggest aiming for the $60 region. Our target is the $62.65-62.25 range.

Picked on June 05 at $ 67.48
Change since picked: - 1.99
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

---

Digital River - DRIV - cls: 40.96 change: -0.60 stop: 42.05

Volume continues to come in very light for DRIV. We're not sure what investors are waiting for. The stock has been bouncing around the $40-42 range for a while. We are not suggesting new plays and more conservative traders might just want to cut their losses early right here! Currently our target is the $35.25-35.00 range. The P&F chart is bearish and points to a $26 target.

Picked on June 19 at $ 39.45
Change since picked: + 1.51
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 1.0 million

---

Intl. Bus. Mach. - IBM - cls: 77.77 chg: -0.25 stop: 78.75

We are expecting IBM to report earnings in less than two weeks. That doesn't give us a lot of time. At this point in the game we're not suggesting new put positions. Our target is the $73.50 level. We do not want to hold over the mid July earnings report.

Picked on June 06 at $ 78.75
Change since picked: - 0.98
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 5.2 million

---

IDEXX Labs - IDXX - close: 75.31 chg: -0.24 stop: 78.05

IDXX displayed a little bit of volatility this morning. Interestingly enough instead of trading lower like the major indices, shares of IDXX traded higher. Yet the rally failed and failed pretty quickly once IDXX tested its two-month trendline of lower highs. This may be a new entry point for puts but we're not suggesting new plays at this time. Our conservative target at $75.25 has already been hit and we're now aiming for the $72.00 level.

Picked on June 12 at $ 77.95
Change since picked: - 2.64
Earnings Date 07/28/06 (unconfirmed)
Average Daily Volume = 144 thousand
 

Strangle Updates

None
 

Dropped Calls

United Tech. - UTX - close: 63.85 chg: -0.14 stop: 59.95

Target achieved. UTX has spent the last couple of days trading sideways in a relatively narrow range around the $64.00 region. Our target was the $64.00-65.00 range and UTX has traded above $64 multiple times in the last couple of trading days. More aggressive traders might want to aim for the May highs above $66.00.

Picked on June 08 at $ 60.13
Change since picked: + 3.72
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

Dropped Puts

Group 1 Auto - GPI - close: 55.66 chg: -1.59 stop: 58.01

We have been stopped out of GPI at $58.25. On Monday morning the stock gapped open higher at $58.25, which was above our stop at $58.01. If we had left our stop at breakeven (58.46) we'd have been okay. The action over the last two sessions looks like a big failed rally and new entry point for puts.

Picked on June 11 at $ 58.46
Change since picked: - 2.80
Earnings Date 08/01/06 (unconfirmed)
Average Daily Volume = 498 thousand

---

Oshkosh Truck - OSK - close: 47.02 chg: +0.39 stop: 50.51

Target achieved. OSK dipped to $45.26 this morning before bulls bought the dip. Our target was the $45.50-45.00 range. We would be very careful if you did not exit yet. The bounce this afternoon has produced a bullish-reversal candlestick and we would expect to see some follow through higher tomorrow.

Picked on June 13 at $ 49.49
Change since picked: - 2.47
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 737 thousand
 

Dropped Strangles

None
 

Play Update Archives