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Call Updates

Cytec - CYT - close: 53.41 change: -1.53 stop: 52.45

Shares of CYT are moving farther away from resistance at the $55.00 level and our trigger to buy calls at $55.11. A 1.45% pull back in the BTK biotech index was a potential anchor on the stock. Short-term technical indicators are now growing bearish for CYT. We are going to keep CYT on the play list with our trigger at $55.11 for now. More aggressive traders might want to watch for a bounce near the rising 200-dma as a new entry point. If triggered our target is the $59.00-60.00 range. We do expect to see some resistance near $57.50 so expect a pull back but broken resistance at $55 should become new support.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (confirmed)
Average Daily Volume = 313 thousand

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Dominion - D - close: 78.62 change: +0.14 stop: 75.75

Utility-related stocks showed some relative strength today but D under performed its peers. The stock is consolidating sideways and it could be investors just waiting to hear the company's earnings report on Thursday. Right now we're planning to exit on Wednesday afternoon at the closing bell. Our target is the $81.00-82.00 range

Picked on July 17 at $ 76.05
Change since picked: + 2.57
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 1.5 million

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Femsa Fomento - FMX - close: 88.03 chg: +0.23 stop: 85.85

FMX is looking better with a bounce this morning from its rising 10-dma. Aggressive traders might want to consider new positions here or above $88.50. We're still waiting for a move over resistance at $90.00. If shares can trade over $90.00 it would produce a new quadruple-top breakout buy signal on the P&F chart. We are suggesting a trigger to buy calls at $90.05. More conservative traders may want to use a trigger at $90.25 or $90.50 just to see little more confirmation. If triggered our target will be the $97.00-100.00 range. Our time frame is four to six weeks.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 524 thousand

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Goldman Sachs - GS - close: 151.26 chg: -1.49 stop: 144.95

Bulls bought the dip in GS near $149.60. Last night we told readers to look for a dip near $150 as a new entry point and this was it. If the markets continue to pull back we'd look for GS to test its rising 10-dma near $148. More conservative traders may want to tighten their stops. Our conservative target is the $154.00 level. Our aggressive target is at $157.50. We'd suggest that readers exit a majority of their position at $154 and only keep a small play open for the $157.50 level.

Picked on July 25 at $148.05
Change since picked: + 3.21
Earnings Date 09/21/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Ipsco - IPS - close: 94.40 change: +0.29 stop: 88.45

IPS continues to show some relative strength with another gain today. Traders bought the dip near $92 this morning and the stock looks poised to breakout over the $95 level. We remain bullish and would continue to consider new positions here but more conservative traders may want to wait for a move over $95. Of course our target is not that far away. We do see potential resistance at the 100-dma (currently near $97.50) and its trendline of lower highs (around $100). Therefore we're going to target a run into the $97.00-100.00 range. The P&F chart is bullish and points to a $108 target.

Picked on July 30 at $ 92.97
Change since picked: + 1.43
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 674 thousand

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Petroleo.Brasiliero - PBR - cls: 91.88 chg: +0.00 stop: 87.49

For the second day in a row shares of PBR gapped lower at the open only to have traders buy the dip. The intraday low today was a retest of support at the $90.00 level. The rebound suggests this is a new entry point to buy calls. Unfortunately, volume was very light today and has been for the last three sessions. We'd use today's move as a new entry but more conservative types may want to tighten their stops. Our target is the $99.50-100.00 range. We do not want to hold over the mid-August earnings report.

Picked on July 30 at $ 92.72
Change since picked: - 0.84
Earnings Date 08/11/06 (unconfirmed)
Average Daily Volume = 3.4 million

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The Houston Exp. - THX - cls: 64.69 chg: +0.83 stop: 59.99

Oil stocks displayed some relative strength as crude oil ticked higher. Shares of THX did pretty well by out performing its peers and the market with a 1.29% gain. THX is expected to report earnings on Thursday, August 3rd. We're planning to exit on Wednesday at the closing bell to avoid the earnings announcement. Our target is the $67.50-70.00 range.

Picked on July 25 at $ 62.60
Change since picked: + 2.09
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 667 thousand
 

Put Updates

Apollo Group - APOL - close: 45.95 chg: -1.37 stop: 50.05

APOL displayed new relative strength on Tuesday with a 2.89% loss and a close under minor support at the $46.00 level. Shares are quickly approaching and almost hit our target in the $45.50-45.00 range. More conservative traders might want to adjust their stop toward the $48 level.

Picked on July 09 at $ 49.92
Change since picked: - 3.97
Earnings Date 09/19/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Chicago Merc. - CME - close: 461.36 change: + 0.16 stop: n/a

This morning CME spiked to $468.40 as investors reacted to news that the exchange's July volume soared more than 40% from a year ago. Yet the strength was short-lived. The stock dipped back to $455 before an afternoon bounce pushed it back into the green. We are not suggesting new put plays at this time. We're not closing the play since it was a high-risk, speculative gamble and we're going to wait out the next three weeks.

Picked on July 23 at $452.00
Change since picked: + 9.36
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 680 thousand

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Manpower Inc. - MAN - close: 56.81 chg: -2.67 stop: 61.05*new*

MAN lost 4.4% today on strong volume as investors reacted to the second downgrade in two days. Yesterday Merrill Lynch downgraded the stock and today it was UBS. Please note we're adjusting our stop loss to $61.05 and our target to $55.75-55.50. More conservative traders may want to consider an early exit right here since we do see what looks like a mini double-bottom during today's session. We're not suggesting new positions. The 200-dma near $55.00 looks like technical support.

Picked on July 20 at $ 59.42
Change since picked: - 2.61
Earnings Date 07/19/06 (confirmed)
Average Daily Volume = 1.0 million

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Union Pacific - UNP - close: 83.14 chg: -1.86 stop: 86.26

The Dow Jones transportation index lost 1.97% and the Dow railroad index fell 2.3% on Tuesday. Shares of UNP closed with a 2.1% loss after dropping back under round-number support at $85 and technical support at its 200-dma. This looks like a new bearish entry point but if you're opening new positions here we'd use a tighter stop loss (maybe near $86.00 or $85.60). Our target is the $80.10-77.65 range.

Picked on July 21 at $ 83.75
Change since picked: - 0.61
Earnings Date 07/20/06 (confirmed)
Average Daily Volume = 1.7 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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Bausch Lomb - BOL - close: 48.00 change: +0.70 stop: n/a

There is no change from our previous updates. BOL continues to bounce around in its sideways consolidation although we do note that the consolidation appears to be narrowing. We're not suggesting new positions at this time. Our estimated cost on the strangle was $2.15. Our goal will be to sell if either option rises to $3.25 or more. The options in our suggested strangle are the August $50 call (BOL-HJ) and the August $45 put (BOL-TI).

Picked on July 23 at $ 47.40
Change since picked: + 0.60
Earnings Date 00/00/06 (unconfirmed)
Average Daily Volume = 2.2 million

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L-3 Comm. - LLL - close: 72.16 chg: -1.49 stop: n/a

Shares of LLL hit new two-month lows with a 2% decline on Tuesday. The move helped produce a new MACD sell signal. We're not suggesting new strangle plays at this time. Our estimated cost for the strangle was $1.35. We will plan to sell if either option rises to $2.25 or more. The options in our LLL strangle are the August $80 call (LLL-HP) and the August $70 put (LLL-TN).

Picked on July 23 at $ 75.26
Change since picked: - 3.10
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 1.2 million

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3M Co. - MMM - close: 69.91 change: -0.49 stop: n/a

There is still no change from our previous updates on MMM. The stock continues to hover around support at the $70.00 level. At this point we do not know what it's going to take to push MMM one direction or the other. Maybe it's the upcoming jobs report or the FOMC meeting. There are only three weeks left before August options expire. Due to our time crunch we're not suggesting new plays at this time. Our estimated cost was $0.75. We are planning to exit if either options rises to $1.50 or more. The options in our strangle are the August 65 put (MMM-TM) and the August 75 call (MMM-HO).

Picked on July 23 at $ 70.72
Change since picked: - 0.81
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 3.7 million
 

Dropped Calls

None
 

Dropped Puts

Itron - ITRI - close: 45.05 chg: -1.49 stop: 50.55

Target achieved. The sell-off in ITRI continued into Tuesday with another 3.2% decline on big volume. The stock dipped to $44.76 and our target was the $45.10-45.00 range. We did not get the best entry point due to the gap down on Monday but shares have achieved our goal.

Picked on July 31 at $ 48.01 *gap lower*
Change since picked: - 2.96
Earnings Date 07/26/06 (confirmed)
Average Daily Volume = 424 thousand
 

Dropped Strangles

None
 

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