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Call Updates

Cytec - CYT - close: 53.75 change: +0.15 stop: 52.45

There is no change from our previous updates. CYT is churning sideways near $54 and its simple 50-dma. We're still waiting for a breakout over $55.00. We're suggesting that readers use a trigger to buy calls at $55.11. 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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Femsa Fomento - FMX - close: 89.66 chg: +0.15 stop: 85.85

FMX continues to look bullish with its trend of higher lows. Traders bought the dip near $88.00 this morning but the stock remains under resistance at the $90.00 level. 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: 152.10 chg: +2.20 stop: 144.95

The XBD broker-dealer index produced a strong 1.4% bounce today. Shares of GS out performed its peers with a 1.46% gain and a move back over the $150 level. 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: + 4.05
Earnings Date 09/21/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Petroleo.Brasiliero - PBR - cls: 94.45 chg: +0.43 stop: 89.49*new*

Crude oil futures slipped lower for the first time in four days on Thursday. Yet that didn't stop the rally in shares of PBR. The stock managed to tag round-number resistance at the $95.00 mark before paring its gains. The next move could be a dip toward $92.50 or its 10-dma near $90.80. We're raising the stop loss to $89.49. 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: + 1.73
Earnings Date 08/11/06 (unconfirmed)
Average Daily Volume = 3.4 million
 

Put Updates

US Airways - LCC - close: 46.56 chg: +2.68 stop: 47.51

The rebound in shares of LCC today seems overdone. This is probably another example of late summer volatility. If you read the "news" today some are claiming that a meager 75-cent drop in crude oil to $75 a barrel was the culprit behind a 3.5% rally in airlines that and optimism about potential fare increases. We are not going to suggest new put positions at this time but another drop under the $45 level and its 100-dma could be used as an entry point. We suspect that the $40 level might offer some support for LCC so we're setting our short-term conservative target at $40.25. We're also setting a more aggressive target at $36.00.

Picked on August 01 at $ 43.54
Change since picked: + 3.02
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 1.6 million

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Manpower Inc. - MAN - close: 59.57 chg: +1.70 stop: 60.76 *new*

The rebound in shares of MAN continued for the second day in a row. The stock has bounced back to resistance near the $60.00 level. Volume was pretty good on today's rally and that's a bad sign for the bears. We're not suggesting new put plays at this time. Instead we're adjusting our stop loss lower to $60.76. Market reaction to tomorrow's jobs number will probably dictate direction for MAN tomorrow. Our target is the $55.75-55.50 range.

Picked on July 20 at $ 59.42
Change since picked: + 0.15
Earnings Date 07/19/06 (confirmed)
Average Daily Volume = 1.0 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: 47.14 change: -0.86 stop: n/a

We have potential news with BOL. The stock's bearish trend of lower highs may finally produce a bearish breakdown under support at the $47.00 level. The stock looks poised to move lower. 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: - 0.26
Earnings Date 00/00/06 (unconfirmed)
Average Daily Volume = 2.2 million

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L-3 Comm. - LLL - close: 72.27 chg: +0.07 stop: n/a

There is no change from our previous updates on LLL. 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: - 2.99
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 1.2 million

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3M Co. - MMM - close: 69.28 change: -0.33 stop: n/a

MMM just posted its fourth decline in a row but it's not making much progress lower. The stock is still hovering around the $70 level. 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: - 1.44
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 3.7 million
 

Dropped Calls

None
 

Dropped Puts

Chicago Merc. - CME - close: 458.07 change: + 2.97 stop: n/a

It's game over for our speculative CME put play. After the closing bell tonight it was announced that CME will replace KMG in the S&P 500 on August 10th. That means that all the funds that track the S&P 500 will need to sell KMG and buy CME. Shares popped into the $480s in after hours tonight.

Picked on July 23 at $452.00
Change since picked: + 6.07
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 680 thousand

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Union Pacific - UNP - close: 86.92 chg: +2.16 stop: 86.26

We have been stopped out of UNP at $86.26. The railroads started the session off weak but surged higher presumably on a 1% pull back in crude oil prices to $75 a barrel. The drop in oil helped the Dow transportation index post a 2.58% gain. UNP rallied to close with a 2.5% gain and the MACD on the daily chart produced a new buy signal. The stock is still under its trendline of lower highs and its 50-dma.

Picked on July 21 at $ 83.75
Change since picked: + 3.17
Earnings Date 07/20/06 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Strangles

None

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