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Call Updates

Cymer Inc. - CYMI - close: 44.38 chg: +2.63 stop: 39.95

It was a big day for tech stocks. The NASDAQ composite soared 1.95% led by big moves in semis and networking stocks. The SOX semiconductor index rallied 3.7% to breakout over resistance at its 100-dma and its exponential 200-dma. The rally in the SOX also reversed a recent MACD sell signal. Shares of CYMI enjoyed a big move higher with the stock adding 6.29% to breakout past the $42.50 level and its simple 200-dma near $43.90. Our target is the $47.00-48.00 range but the next hurdle for CYMI is the 100-dma (near 44.65) and the $45.00 mark.

Picked on September 06 at $ 42.55
Change since picked: + 1.83
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.0 million

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Omnicom - OMC - close: 92.24 chg: +1.01 stop: 87.84

The rally in OMC has now made it five days in a row. The stock added 1.1% and closed at a new multi-week high. We remain optimistic but shares are looking a little overbought here. We'd wait for a dip before considering new bullish positions. Our target is the $96.00-96.50 range. The Point & Figure chart for OMC is very optimistic with a $131 target.

Picked on September 10 at $ 90.97
Change since picked: + 1.27
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million

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United Ind. - UIC - close: 52.79 change: +0.86 stop: 49.99

UIC bounced for a 1.65% gain after four straight days of profit taking. This rebound might be used as a new bullish entry point but traders entering now may want to use a tighter stop loss. The stock has already hit our primary target in the $54.75-55.00 range. Our secondary target is the $57.50 level.

Picked on August 27 at $ 51.77
Change since picked: + 1.02
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand
 

Put Updates

Boeing - BA - close: 74.26 change: +0.44 stop: 76.26

BA continues to trade as expected. We've been warning readers to expect a bounce back toward the $75 range and so far BA has complied. We're actually a little surprised that the bounce was not stronger today. Banc of America reiterated their "buy" rating on BA today and said the dip in shares of BA was a buying opportunity. We are not suggesting new positions at this time. Our target is the $70.50-70.00 range.

Picked on August 10 at $ 75.75
Change since picked: - 1.49
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Burlington NorSantaFe - BNI - cls: 65.87 chg: -0.06 stop: 66.75

The Dow Jones Transportation index turned in a very impressive 3.3% gain on Tuesday. The move might be seen as a bullish follow through on what could be interpreted as a bullish double-bottom pattern. Aggressive traders might want to look for bullish plays in the sector but we'd be cautious with resistance near 4400 and its 50-dma and 200-dma still overhead for the TRAN index. Meanwhile shares of BNI bounced with a 2.99% gain. We're still on the sidelines so it doesn't hurt to wait and watch. We're watching to see if BNI breaks out over $68.00 and/or its 50-dma (near $69). Currently our suggested entry point to buy puts is at $63.74, under support near $64.00.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 2.8 million

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EOG Resources - EOG - close: 59.82 chg: +0.05 stop: 65.31

Oil stocks, as a group, continued to sink following another decline for crude oil on Tuesday. Shares of EOG merely consolidated sideways. We warned readers that the stock was looking a little oversold and due for a bounce. We're not suggesting new positions at this time and more conservative traders might want to do some profit taking right now. The next move could be an oversold bounce toward the simple 10-dma (currently near 63.50). Our target is the $57.50-55.00 range.

Picked on September 06 at $ 63.85
Change since picked: - 4.03
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 3.3 million

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Express Scripts - ESRX - close: 84.31 chg: +1.89 stop: 82.51

On Sunday we added ESRX as a put candidate because the stock looked poised to breakdown from its five-week trading range and slide under support near $80.00. Now, with a positive market, the stock has rallied toward the top of its trading range near $85.00. Nimble traders may want to consider switching directions and buying calls if ESRX can breakout over the $85 level. If a breakout higher occurs we'd aim for the $90 region. Currently our suggested trigger to buy puts is at $79.85.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Fluor - FLR - close: 79.96 change: -1.27 stop: 86.01

It is hard to make any progress with our put plays when the market is in rally mode. Yet shares of FLR failed to participate and lost another 1.5%. The close under $80.00 is definitely a sign of weakness. Our target is the $75.50-75.00 range.

Picked on September 10 at $ 81.74
Change since picked: - 1.78
Earnings Date 11/06/06 (unconfirmed)
Average Daily Volume = 863 thousand

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Johnson Controls - JCI - close: 71.93 chg: +3.09 stop: 74.16*new*

Ouch! The market rally on Tuesday fueled a big rebound in JCI and the stock erased a large chunk of our potential gains. The breakout back above $70.00 and its 10-dma is bad news for the bears. We're not suggesting new positions and we're adjusting the stop loss to $74.16. More conservative traders may want to tighten their stop even further (maybe around $73).

Picked on August 22 at $ 72.96
Change since picked: - 0.75
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million

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Radian Group - RDN - close: 60.41 chg: +1.51 stop: 61.16 *new*

The market strength today also sparked a big bounce in RDN. What makes this significant is the stock broke back above the $60.00 mark, the 10-dma and its 200-dma. We're going to tighten our stop loss to $61.16, which is just above the September 5th high. We're not suggesting new plays.

Picked on September 06 at $ 58.99
Change since picked: + 1.42
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 722 thousand
 

Strangle Updates

None
 

Dropped Calls

VF Corp. - VFC - close: 74.30 change: +1.53 stop: 68.95

Target achieved. VFC extended its gains on Tuesday with a 2.1% surge. Volume on the rally continues to improve, which is bullish. Our target was the $74.00-75.00 range, which has been hit. We're exiting the play but traders may want to keep an eye on VFC for a pull back as a potential entry point for new bullish positions.

Picked on August 30 at $ 70.25
Change since picked: + 4.05
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 567 thousand
 

Dropped Puts

Chipotle Mex Grill - CMG - close: 51.47 chg: +2.37 stop: 51.55

We have been stopped out of CMG at $51.55. Shares turned in a very strong performance today with a 4.8% gain on better than average volume. Some of the chatter today involved more investor confidence for the consumer sensitive stocks since oil was falling so quickly. We wouldn't call CMG that consumer sensitive since their burritos are about $5 each but lower fuel prices certainly doesn't hurt their customers. Traders might want to consider switching directions and buying calls if CMG can breakout over $52.00 and its 50-dma near also near $52 - such a move would look like a breakout through the top of CMG's bearish channel.

Picked on August 09 at $ 50.28
Change since picked: + 1.19
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand
 

Dropped Strangles

None
 

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