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Call Updates

The Andersons - ANDE - close: 41.01 chg: +1.25 stop: 37.49

ANDE is finally showing some strength. After a week of flirting with a breakout over resistance at $40.00 the stock finally produced some real gains with a 3.1% rally and a new six-week closing high. The move over $40.25 was a new entry point to go long/buy calls. Our target is the $44.50-45.00 range.

Picked on August 28 at $ 40.26
Change since picked: + 0.75
Earnings Date 10/27/06 (unconfirmed)
Average Daily Volume = 900 thousand

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AstraZeneca - AZN - close: 65.14 change: +0.33 stop: 59.95

AZN also continued to trek higher. We were a little concerned that the $65.00 level might offer round-number resistance but shares managed to post another 0.5% gain and close above the $65 mark. We remain somewhat cautious since AZN looks short-term overbought so we're not suggesting new plays at this time. Everything else looks pretty bullish and the up tick in volume over the last three days is a positive sign. More conservative traders might want to take some profits as AZN nears $65. Our target is the $68.00-69.00 range.

Picked on August 20 at $ 62.99
Change since picked: + 2.15
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Cameco - CCJ - close: 40.95 change: +1.32 stop: 37.95

Shares of CCJ produced a bullish breakout over round-number resistance at the $40.00 level on Thursday. We see the move over $40.00 (and 40.50) as a new entry point to buy calls. Some merger and acquisition news in the metals and mining sector may have helped fuel the rally in CCJ. The companies making headlines were GG and GLG. Goldcorp (GG) offered $8.6 billion in stock to buy rival Glamis Gold (GLG). Our target for CCJ is the $44.50-45.00 range.

Picked on August 22 at $ 40.33
Change since picked: + 0.62
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 1.9 million

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Cognizant Tech. - CTSH - close: 69.91 chg: -0.69 stop: 68.45

We continue to urge caution on CTSH. On Tuesday the stock produced an intraday spike higher and hit our trigger to open the play but shares reversed on us. The move looked like a failed rally/bull trap. Today's failed rally near $71.26 and its slip back under the $70.00 level is bad news. The technical indicators are starting to roll over into bearish signals, especially the MACD on the daily chart. We seriously considered closing the play right here. However, there is still a chance that CTSH will bounce from its six-week trendline of support near $69.00. More conservative traders may want to tighten their stops. We would wait for a move over $71.50 before considering new call positions. Our target is the $76.50-77.50 range.

Picked on August 29 at $ 71.55
Change since picked: - 1.64
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Cymer Inc. - CYMI - close: 41.15 chg: -0.29 stop: 39.95

The SOX semiconductor index felt some profit taking today after a three-day winning streak. Shares of CYMI followed with a pull back of its own following a failed rally near $42.00 and its exponential 200-dma. We are still on the sidelines. Our trigger to buy calls is at $42.55. If triggered our target is the $47.00-48.00 range.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Freeport McMoran - FCX - close: 58.21 chg: +1.13 stop: 53.95

FCX displayed some relative strength on Thursday with a 1.97% gain. News that Goldcorp (GG) was buying Glamis Gold (GLG) for $8.6 billion helped fuel a rally in the gold miners. Today's rise in FCX is a technical breakout over the top of its recent trading range and resistance at $58.00, which can be used as a new entry point to buy calls. Our target is the $62.50-63.00 range. Traders should also note that we do expect some short-term resistance near $60.00 and a retest of the 100-dma, once broken as resistance, should act as support.

Picked on August 23 at $ 57.51
Change since picked: + 0.70
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume = 5.1 million

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MicroStrategy - MSTR - close: 91.20 chg: -0.61 stop: 88.99*new*

We are still seeing a lot of mixed signals with MSTR. The stock's six-week trend is up and shares have broken out from its three-month bearish channel a couple of weeks ago. Yet MSTR is struggling to build on the technical breakout and momentum indicators are growing weaker. The MACD on the daily chart is nearing a new sell signal. We suggest that traders be careful here. We're not suggesting new positions with MSTR under its 200-dma (currently 92.28) or its 100-dma (currently 93.20). We will try and reduce our risk by adjusting the stop loss to $88.99. Short-term we're expecting a dip back toward $90.00. Currently our target is the $98.75-99.00 range.

Picked on August 16 at $ 92.05
Change since picked: - 0.85
Earnings Date 10/27/06 (unconfirmed)
Average Daily Volume = 431 thousand

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Piper Jaffray - PJC - close: 58.58 change: +1.06 stop: 53.99*new*

PJC continues to rally following the bullish breakout yesterday. We remain bullish but we're not suggesting new positions at this time. The next level of overhead resistance appears to be the 100-dma near round-number resistance at $60.00. Our target is the $59.90-60.00 range. We're going to raise our stop loss to $53.99.

Picked on August 20 at $ 55.70
Change since picked: + 2.88
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 300 thousand

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FreightCar Amer. - RAIL - cls: 58.20 chg: +0.82 stop: 54.95

Entry point alert! The Dow Jones transportation index is still consolidating sideways but the railroad index managed a bit of an oversold bounce today. Strength in the railroads probably helped shares of RAIL to add 1.4% and breakout over technical resistance at its 100-dma and 200-dma. We see the move as a new entry point to buy calls. More conservative traders may want to wait for a move over $60.00 before initiating plays. Our target is the $64.50-65.00 range.

Picked on August 20 at $ 59.13
Change since picked: - 0.93
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 475 thousand

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Ryland Group - RYL - close: 42.67 change: +0.36 stop: 39.95

We do not see any changes from our previous updates on RYL. Shares continue to consolidate sideways and we're waiting for a bullish breakout above resistance at the $45.00 level. Currently our trigger to buy calls is at $45.15. If triggered then our target is the $49.90-50.00 range.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 1.7 million

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United Ind. - UIC - close: 53.87 change: +0.07 stop: 49.45

Hmm... the rally in shares of UIC might be running out of breath. The stock is up significantly from its August lows and nearing resistance at the $55.00 level. The next move might just be a dip back toward the 10-dma (currently near 51.75). If you're looking for a new entry point wait and watch for a pull back. The $50.00 level, bolstered by the simple 200-dma, should also offer support. We have two targets on UIC. Consider selling half or more of your position at our first target in the $54.75-55.00 range. Our secondary target is the $57.50 level. The P&F chart points to a $64 target.

Picked on August 27 at $ 51.77
Change since picked: + 2.10
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand

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VF Corp. - VFC - close: 69.89 change: +0.30 stop: 68.45

We are a little bit surprised by VFC's performance on Thursday. As of Wednesday's close the stock look poised to move lower. Fortunately, there was no follow through on what looked like a bearish reversal. That doesn't mean we're not out of the woods yet. We suspect that the relatively good same-store sales numbers that came out today may have propped up shares of VFC. Aggressive traders might want to adjust their stop wider so the stop is under the 50-dma. We are not suggesting new plays at this time and would wait for a move past $70.35 before considering new positions.

Picked on August 30 at $ 70.25
Change since picked: - 0.36
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 567 thousand
 

Put Updates

Boeing - BA - close: 74.90 change: -0.12 stop: 78.05

There was some excitement today about which companies might win the lucrative deals to build NASA's next manned space exploration vehicles. Yet even with all the headlines shares of BA are still under performing the market. The stock produced a failed rally pattern under its simple 10-dma. This looks like a new entry point to buy puts although if you're entering plays here you may want to use a tighter stop loss. We continue to target the $70.50-70.00 range.

Picked on August 10 at $ 75.75
Change since picked: - 0.85
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Chipotle Mex Grill - CMG - close: 49.34 chg: -0.92 stop: 52.55

CMG displayed relative weakness on Thursday with a 1.8% decline. The move follows yesterday's failed rally and the move under $50 could be used as a new entry point to buy puts. More conservative traders may want to still wait for a drop under $49 before opening new plays. We are targeting a decline into the $45.50-45.00 range.

Picked on August 09 at $ 50.28
Change since picked: - 0.94
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

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Intuitive Surgical - ISRG - cls: 94.40 chg: +1.99 stop: 96.05*new*

It might be time to start thinking about an early exit in ISRG. The stock's rally today was just a little too optimistic for us even though ISRG failed to breakout over the $95.00 level. More conservative traders may want to exit early right now to prevent or limit losses. We're going to tighten our stop loss to $96.05 and considering ISRG's normal volatility we could be stopped out pretty easily. We're not suggesting new positions at this time.

Picked on August 10 at $ 94.90
Change since picked: - 0.50
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Johnson Controls - JCI - close: 71.93 chg: +1.63 stop: 75.51

Uh-oh! Bears and put holders might be in trouble here. The overall pattern in JCI remains bearish but the stock has been holding above support at the $70.00 level. What concerns us today is Thursday's bullish engulfing candlestick pattern (bullish reversal). Volume came in a little bit higher than what JCI has seen lately and the short-term technical indicators, all near oversold levels, are hinting at a move higher. We're going to keep the play open but readers need to know that JCI could easily rally back toward the $75.00 level, which we anticipate will be new resistance. If you don't want to endure that kind of volatility then consider an early exit, especially if JCI trades over $72.00 or $72.50 tomorrow. Our target is the $68.50-67.50 range. The P&F chart, with its triple-bottom breakdown sell signal, points to a $61 target.

Picked on August 22 at $ 72.96
Change since picked: - 1.03
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Radian Group - RDN - close: 59.88 chg: -0.07 stop: 61.51

The path of least resistance appears to still be down for RDN. However, the stock is still clinging to support near $60 and its 200-dma (near 59.50). We remain on the sidelines and we are still suggesting a trigger to buy puts at $58.99. If triggered our target is the $55.15-55.00 range. We do not want to hold over the mid October earnings report.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 722 thousand

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Transocean Inc. - RIG - cls: 66.75 chg: +0.98 stop: 70.25

Crude oil futures are trying to bounce from their lows of the week. Iran's refusal to comply with the U.N.'s August 31st deadline to stop enriching uranium has kept something of a floor underneath the price of oil. Yet this has failed to stop the profit taking in the oil sector this week. Shares of RIG managed a 1.49% bounce from its test of support near $65.00. We are not suggesting new plays at this time. The stock has already hit our conservative target at $65.25 multiple times. Our secondary, aggressive target is the $61 level. Currently the P&F chart points to a $49 target.

Picked on August 07 at $ 69.49
Change since picked: - 2.74
Earnings Date 08/03/06 (confirmed)
Average Daily Volume = 6.4 million
 

Strangle Updates

None
 

Dropped Calls

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Dropped Puts

Burlington Nor.SantaFe - BNI - cls: 66.95 chg: +1.94 stop: 70.25

Abandon ship! Or in this case the railroad! Yesterday we warned readers that BNI was poised for a breakout either direction. Well today was it. The stock rose 2.9% and broke out over resistance at the top of its bearish channel. We are suggesting that traders exit immediately. Truly nimble traders may want to consider buying calls and putting a stop loss under $64.00.

Picked on August 08 at $ 68.06
Change since picked: - 1.11
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 2.7 million
 

Dropped Strangles

None
 

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