Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

None

Put Updates

Apple Computer - AAPL - close: 64.07 chg: +0.48 stop: 70.01

Shares of AAPL spent most of the session trading sideways. Bulls bought the dip near its simple 100-dma but the bounce stalled under the $65 level. We remain bearish but shares could still bounce toward the 10-dma and 200-dma still overhead. Our short-term target is the $60.50-60.00 range. The top of the July gap near $59.70 could act as support.

Picked on August 08 at $ 64.78
Change since picked: - 0.71
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 28 million

---

Autozone Inc. - AZO - close: 88.27 chg: +1.95 stop: 90.05

AZO produced a pretty sharp bullish reversal today. Shares closed with a 2.2% gain although we note that volume remains very low on the move. Unfortunately, we cannot find any specific news to account for the strength in AZO. The only news we did find was an earnings report from rival AAP, who beat estimates by a penny and then issued an earnings warning for the third quarter. Yet shares of AAP, rival ORLY and AZO all rallied strongly on the session. We are not suggesting new puts in AZO at the moment and more conservative traders may want to consider exiting the play immediately since today's rebound in AZO produced a bullish engulfing candlestick pattern. We're expecting AZO to bounce towards resistance near $90.00.

Picked on August 08 at $ 87.73
Change since picked: + 0.54
Earnings Date 09/21/06 (unconfirmed)
Average Daily Volume = 700 thousand

---

Boeing - BA - close: 76.20 change: -0.96 stop: 80.85

Our new put play in BA has been opened. The stock broke down under support at the $76.00 level and hit our trigger to buy puts at $75.75. The move was sparked by initial weakness on the terror-plot news coming from the U.K. followed by non-related headlines of BA still facing a government review of its cargo-plane contract fiasco that began back in 2000. Shares of BA did bounce from round-number support at $75.00 and more conservative traders, as we mentioned earlier, may want to wait for a breakdown under $75.00 before initiating positions. Currently shares look poised for a bounce towards their 10-dma near $78. Our target is the $70.50-70.00 range. Today's decline did produce another P&F chart sell signal.

Picked on August 10 at $ 75.75
Change since picked: + 0.45
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

---

Burlington Nor.SantaFe - BNI - cls: 65.55 chg: -0.22 stop: 72.05

Shares of BNI spent the session trading sideways in a narrow channel in spite of a bounce in the transports. The rebound in transports was probably fueled by a 3% sell-off in crude oil futures today. We do note that volume on BNI's session was high. We remain bearish but traders might want to wait for a bounce and failed rally near its 10-dma before considering new positions. Our target is the bottom edge of the current channel in the $62.50-60.00 range.

Picked on August 08 at $ 68.06
Change since picked: - 2.51
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 2.7 million


---

Chipotle Mex Grill - CMG - close: 48.67 chg: -1.61 stop: 54.01

Honestly, we were expecting more of a bounce in shares of CMG today after Brinker (EAT) reported a better than expected earnings report before the opening bell this morning. Instead shares of CMG continued to sell-off. The stock dipped to $47.37 before paring its losses to close with a 3.2% decline on heavy volume. Everything continues to look bearish but some traders may want to try and time an entry on an oversold bounce next. Our target is the $45.50-45.00 range.

Picked on August 09 at $ 50.28
Change since picked: - 1.61
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

---

Cummins Inc. - CMI - close: 118.12 chg: +1.12 stop: 123.51

CMI managed a bounce from the $116 level today. Short-term technicals are still bearish but readers could watch for a bounce and failed rally near $120 as a new entry point for puts. Our target is the $112.75 mark but some traders may want to exit near the 50-dma, currently near $113.30.

Picked on August 08 at $119.77
Change since picked: - 1.65
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

---

Fastenal - FAST - close: 35.68 chg: +0.48 stop: 37.75

Our new play in FAST has been opened but we're urging traders enter cautiously. The stock broke down under the $35.00 level and hit our trigger to buy puts at $34.90 on an intraday basis but some afternoon buying put FAST back into the green. A failed rally near $36.00 or $36.26 could be used as a new entry point but we'd prefer to wait for another decline under $35 before considering new positions. If triggered our target is the $30.75-30.00 range.

Picked on August 10 at $ 34.90
Change since picked: + 0.78
Earnings Date 10/11/06 (unconfirmed)
Average Daily Volume = 1.2 million

---

Hartford Fincl - HIG - close: 80.58 chg: +0.72 stop: 82.01

A big bounce in Dow-component AIG helped fuel a bit of an oversold bounce in HIG. Shares of HIG did hit an intraday low of $79.55 but our trigger to buy puts is at $79.20, which is under the March low. More conservative traders may want to wait for a drop under $79.00 before initiating positions. Our short-term target is going to be the $75.25-75.00 range. More aggressive traders may want to aim for the $72.50-70.00 range.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.5 million

---

Intuitive Surgical - ISRG - cls: 95.42 chg: -0.43 stop: 101.55

ISRG was weak the first half of Thursday's session and the stock dipped to $92.27 before an afternoon rebound reduced most of its losses. Our trigger to buy puts was at $94.90 so the play is now open. We want to remind readers that this is an aggressive, higher-risk play because shares of ISRG can be so volatile. Today's session, with its intraday bounce, does look like a short-term bullish reversal. Watch to see if the simple 10-dma (near 97.40) acts as overhead resistance before considering new plays. Our target is the $87.75-87.50 range.

Picked on August 10 at $ 94.90
Change since picked: + 0.52
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

---

US Airways - LCC - close: 40.52 chg: -0.26 stop: 45.26

Airlines were initially weak on the news that U.K. officials had arrested 21 in a massive terror plot to blow up U.S.-bound flights. Yet by the end of the day the XAL index recovered to post a 1.3% gain. Shares of LCC were not quite so strong and shares closed with a minor loss but held on to round-number support at the $40 level. We're not suggesting new put plays at this time. The stock has already hit our conservative target at $40.25 and we're now aiming for our aggressive target at $36.00. FYI: After the closing bell S&P downgraded their view on the airline sector.

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

---

NII Holdings - NIHD - close: 49.58 chg: +0.09 stop: 52.51

NIHD is still not seeing any movement. The stock looks bearish with the breakdown under its 200-dma(s) and the $50 level but it's just not seeing any follow through lower yet. We do expect some sort of bounce near $47.50 but our target is the $45.50-45.00 range since $45.00 looks like stronger support.

Picked on August 07 at $ 49.90
Change since picked: - 0.38
Earnings Date 07/27/06 (confirmed)
Average Daily Volume = 2.2 million

---

Transocean Inc. - RIG - cls: 66.25 chg: -0.78 stop: 72.25*new*

RIG can't seem to stop the bleeding. The stock posted another decline in spite of a broker upgrade this morning. Of course it didn't help that crude oil futures lost 3% today. The stock is so oversold we're expecting a bounce from the $65.00 level. We do suggest that readers take profits (some or all) at our conservative target. We are suggesting two targets: a conservative target at $65.25 and a more aggressive target at $61.00. The P&F chart points to a $59 target. FYI: We're lowering the stop loss to the 10-dma near $72.25.

Picked on August 07 at $ 69.49
Change since picked: - 3.24
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 6.4 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.)

---

Bausch Lomb - BOL - close: 45.03 change: -0.32 stop: n/a

There are no new changes from our previous updates on BOL. We're not suggesting new positions. We have less than two weeks left before August options expire and need to see a bigger move in BOL soon. 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: - 2.37
Earnings Date 00/00/06 (unconfirmed)
Average Daily Volume = 2.2 million

---

3M Co. - MMM - close: 68.41 change: +0.11 stop: n/a

We do not see any changes from our previous updates on MMM. We're not suggesting new positions. Our estimated cost for our August strangle 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: - 2.42
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 3.7 million

Dropped Calls

Petroleo.Brasiliero - PBR - cls: 94.94 chg: +0.32 stop: 89.49

PBR displayed some relative strength with a late day bounce in spite of a 3% sell-off in crude oil futures today. The rebound from the $93 level looks like a new entry point to buy calls but we're closing the play. The only earnings date we can find for PBR is August 11th so we're closing the play early to avoid holding over any announcement.

Picked on July 30 at $ 92.72
Change since picked: + 2.22
Earnings Date 08/11/06 (unconfirmed)
Average Daily Volume = 3.4 million

Dropped Puts

None

Dropped Strangles

None

Play Update Archives