Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

The Andersons - ANDE - close: 42.69 chg: +1.10 stop: 38.90 *new*

Not one but two analyst firms started coverage on ANDE today. The stock received an "out perform" and a "buy" rating. The positive ratings helped lift the stock to a 2.6% gain. We would not suggest new positions right here. If ANDE does provide a dip then an entry near $40.00-40.75 would be preferred. We are raising our stop loss to $38.90. Our target is the $44.50-45.00 range.

Picked on August 28 at $ 40.26
Change since picked: + 2.43
Earnings Date 10/27/06 (unconfirmed)
Average Daily Volume = 900 thousand

---

AstraZeneca - AZN - close: 64.39 change: -1.04 stop: 59.95

The drug sector experienced some profit taking on Tuesday and shares of AZN slipped over 1.5%. The selling stalled just above AZN's rising 10-dma. We warned readers over the weekend that AZN was due for a dip. A bounce from the 10-dma would be buyable but if you're starting new positions we'd suggest tighter stops. We are thinking about inching our stop loss toward $62.00, which should be support. Our target is the $68.00-69.00 range.

Picked on August 20 at $ 62.99
Change since picked: + 1.40
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.1 million

---

Cameco - CCJ - close: 42.35 change: +0.62 stop: 38.75

Metal and mining-related stocks turned in a strong session on Tuesday. Shares of CCJ enjoyed a 1.48% gain on average volume. We don't see any changes from our weekend update and remain bullish. Our target is the $44.50-45.00 range.

Picked on August 22 at $ 40.33
Change since picked: + 2.02
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 1.9 million

---

Carpenter Tech. - CRS - cls: 103.52 chg: +3.74 stop: 97.45*new*

The rally in steel-related stocks picked up speed on Tuesday. Shares of CRS gapped open higher at $101.10 and surged to $103.74 intraday. The close today is a bullish breakout from its five-week consolidation and a breakout over potential resistance at its 50-dma. Our suggested trigger to buy calls was at $100.75 so today's gap higher would have opened the play. Our target is the $107.50-108.00 range. Please note we're raising ours top to $97.45. FYI: Several stocks in the steel sector look like potential bullish call candidates...X, OS, IPS, NUE.

Picked on September 05 at $101.10 *gap higher*
Change since picked: + 2.42
Earnings Date 10/23/06 (unconfirmed)
Average Daily Volume = 847 thousand

---

Cognizant Tech. - CTSH - close: 71.50 chg: +1.76 stop: 68.45

Good news! Investors came back from the weekend and decided to pick up shares of CTSH. It seems the market approved of CTSH's news this morning that the company purchased AimNet to strength CTSH's IT infrastructure services division. Today's rebound looks like a new entry point but traders may still want to wait for a breakout over resistance near $72.00 before initiating positions. Our target is the $76.50-77.00 range.

Picked on August 29 at $ 71.55
Change since picked: - 0.05
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 1.4 million

---

Cymer Inc. - CYMI - close: 42.21 chg: +1.30 stop: 39.95

Traders decided to buy the dip in semiconductor stocks and the SOX added 1.6%. Shares of CYMI out performed its peers with a 3.1% gain and a bullish breakout past $42.00 and its exponential 200-dma. More aggressive traders might want to use today's rally as a new entry point to buy calls on CYMI. We are sticking to our plan to use a trigger at $42.55. If triggered in CYMI at $42.55 our target is the $47.00-48.00 range. FYI: We are expecting some resistance at the 200 or 100-dma still overhead but if the semis continue to rally then we expect CYMI to push past these hurdles.

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

---

Emerson Elec. - EMR - close: 83.40 chg: +0.71 stop: 79.99

Our new play in EMR is now open. Shares traded to an intraday high of $83.78 and our suggested trigger to buy calls was at $83.55. We would have liked to have seen volume come in higher but the pattern remains bullish. Traders can choose to open plays here or look for a dip back towards the $82 region. Our target is the $89.00-90.00 range.

Picked on September 05 at $ 83.55
Change since picked: - 0.15
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 1.5 million

---

Freeport McMoran - FCX - close: 61.59 chg: +2.23 stop: 55.95*new*

FCX turned in a strong day with a 3.75% gain on improving volume. The move was sparked by an upgrade from "hold" to a "buy". The rally probably got some help by the sector strength in metals and mining stocks today. FCX's rally over $60.00 is definitely bullish but FCX might pull back to "fill the gap" before moving higher. The high today was $62.29 and our target is the $62.50-63.00 range. We're not suggesting new positions at this time and we are raising the stop loss to $55.95. More conservative traders might want to lock in some profits right here.

Picked on August 23 at $ 57.51
Change since picked: + 4.08
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume = 5.1 million

---

MicroStrategy - MSTR - close: 92.65 chg: +1.04 stop: 89.45 *new*

MSTR definitely showed some improvement on Tuesday. The rally had been looking tired and the technicals had turned increasingly more bearish. Yet today's session saw MSTR bounce higher with a 1.1% gain. The move might be used as a new entry point. Our only concern is that MSTR failed to hold its gains above technical resistance at its 100 and 200-dma(s). More conservative types may want to wait for another rally past $93.00 or today's high (93.41) before initiating positions. Currently our target is the $98.75-99.00 range. Please note we're raising the stop loss to $89.45.

Picked on August 16 at $ 92.05
Change since picked: + 0.60
Earnings Date 10/27/06 (unconfirmed)
Average Daily Volume = 431 thousand

---

Southern Peru Copper - PCU - cls: 96.67 chg: +3.57 stop: 89.99 *new*

PCU almost hit our target today. Metal and mining stocks showed a lot of strength and the XAU gold & silver index broke out over resistance near 150. Shares of PCU gapped higher and hit an intraday high of $97.94. Our target is the $98.00-100.00 range. We're not suggesting new plays at this time and more conservative traders might want to lock in profits right now. We're raising the stop loss to $89.99.

Picked on August 31 at $ 92.32
Change since picked: + 4.35
Earnings Date 07/26/06 (confirmed)
Average Daily Volume = 1.5 million

---

Phelps Dodge - PD - close: 93.48 change: +2.73 stop: 87.75 *new*

PD is another beneficiary of the rally in metal and mining stocks on Tuesday. However, PD also had another factor pushing the stock higher. This morning before the opening it was announced that PD and Inco (N) had terminated their planned merger. This break up, lead by Inco, means that PD will receive a $125 million termination fee. Inco, one of the world's largest nickel miners, has been pursued by multiple suitors and today's news only leaves one left with $17 billion bid by Brazil's Companhia Valo de Rio Dolce SA. Bringing the focus back to shares of PD we note that the rally stalled at the $95 level this morning and shares might try to "fill the gap" before moving higher. We're going to raise our stop loss to $87.75. Our target is still the $97.50-100.00 range.

Picked on September 01 at $ 90.55
Change since picked: + 2.93
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 6.7 million

---

FreightCar Amer. - RAIL - cls: 59.59 chg: -0.46 stop: 54.95

The transports were one of the few sectors to actually trade lower today in spite of another pull back in crude oil prices. Shares of RAIL failed to see any follow through on last Friday's rally. However, we remain bullish. Traders can use this dip as another entry point or wait for a new relative high above $60.45 before initiating plays. Our target is the $64.50-65.00 range.

Picked on August 20 at $ 59.13
Change since picked: + 0.46
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 475 thousand

---

Ryland Group - RYL - close: 41.81 change: -0.57 stop: 39.95

Homebuilders are still consolidating sideways. We don't see any changes from our weekend update on RYL. We're trying to catch a breakout over resistance at $45.00 and we're suggesting a trigger to buy calls 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

---

United Ind. - UIC - close: 55.26 change: +0.98 stop: 49.99*new*

UIC is still showing relative strength. The DFI defense index managed a breakout over resistance and this helped UIC, which was already looking overbought and due for a dip, to keep climbing. Today's 1.8% gain in UIC is also a breakout over round-number resistance at the $55.00 level. We're not suggesting new positions at this time. The stock has already hit our initial target in the $54.75-55.00 range. Currently we're aiming for a rally to the $57.50 level. We're inching the stop loss up to $49.99.

Picked on August 27 at $ 51.77
Change since picked: + 3.49
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand

---

VF Corp. - VFC - close: 70.37 change: -0.05 stop: 68.45

VFC is struggling to build on Friday's breakout and shares actually under performed the market and its peers today. Fortunately, traders bought the dip near $69.50 this morning. Readers might want to use today's afternoon bounce as a new entry point. Our target is the $74.00-75.00 range. The P&F chart, with its triple-top breakout buy signal, points to a $90.00 target.

Picked on August 30 at $ 70.25
Change since picked: + 0.12
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 567 thousand
 

Put Updates

Boeing - BA - close: 75.36 change: -0.07 stop: 78.05

It was not much but today's decline in BA was a minor victory for the bears. BA not only under performed the market but shares appeared to produce a failed rally under its 21-dma and its exponential 200-dma. We are not suggesting new positions at this time. More aggressive traders, if you're looking for an entry, might want to buy puts on another decline under $75.00 or $74.50. Our target is the $70.50-70.00 range. Remember, we're not suggesting new plays especially after today's bullish breakout in the defense sector.

Picked on August 10 at $ 75.75
Change since picked: - 0.39
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

---

Chipotle Mex Grill - CMG - close: 50.51 chg: -0.18 stop: 52.55

CMG is still under performing the markets. Today's session showed another minor failed rally and a close near its lows for the day. The three-month pattern is still bearish with the trend of lower highs but we are not suggesting new plays with CMG above $50. Our target is the $45.50-45.00 range. The P&F chart is still bearish and points to a $39 target.

Picked on August 09 at $ 50.28
Change since picked: + 0.23
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

---

EOG Resources - EOG - close: 66.61 chg: +0.67 stop: 66.55

Oil stocks were moving higher as investors cheered what is being called a major find in the deep waters of the Gulf of Mexico. We remain bearish on EOG but we're waiting for a breakdown under support and confirmation of its bearish H&S pattern. We're suggesting a trigger to buy puts at $63.85. If triggered our target is the $57.50-55.00 range. The biggest risk we see with this play is the situation with Iran. If there is any military action against Iran or coming out of Iran then oil should significantly spike higher, which would put this play in danger!

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 3.4 million

---

Johnson Controls - JCI - close: 71.34 chg: -1.31 stop: 75.51

Hmm... the trading in JCI was very interesting on Tuesday. Late last week the stock produced a bullish reversal and bounce from support near $70.00. We expected the rebound to make it toward the next level of resistance near $75.00. Yet in spite of a generally bullish market on Tuesday shares of JCI turned lower losing 1.8%. We are not suggesting new positions at this time and more conservative traders might want to tighten their stop loss. Our target is the $68.50-67.50 range.

Picked on August 22 at $ 72.96
Change since picked: - 1.62
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

---

Radian Group - RDN - close: 60.79 chg: +0.26 stop: 61.51

There is no change from our weekend update on RDN. We are still waiting on the sidelines with RDN. Over the last few weeks the stock produced a bearish head-and-shoulders pattern. In late August the stock broke down under support at the neckline to the H&S pattern but failed to breakdown below technical support at its rising 200-dma. That's why we are suggesting that readers wait for more confirmation of the breakdown below buying puts. Our preferred entry point is with a trigger at $58.99. If we are triggered our target is the $55.15-55.00 range.

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

Strangle Updates

None
 

Dropped Calls

Piper Jaffray - PJC - close: 59.16 change: +0.14 stop: 53.99

Target achieved. PJC's rally continued into Tuesday and the stock traded to an intraday high of $60.06 before paring its gains. Our target was the $59.90-60.00 range. PJC is trading under resistance at $60 and its 100-dma so the next move could be a pull back towards $56.

Picked on August 20 at $ 55.70
Change since picked: + 3.46
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 300 thousand
 

Dropped Puts

Intuitive Surgical - ISRG - cls: 96.12 chg: +1.07 stop: 96.05

We have been stopped out of ISRG at $96.05. Another bullish day for the markets was enough to push ISRG above the $95 level and hit our stop loss. The next move for ISRG is probably a bounce toward round-number resistance near $100.

Picked on August 10 at $ 94.90
Change since picked: + 1.22
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Dropped Strangles

None
 

Play Update Archives