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Call Updates

Mettler Toledo - MTD - close: 66.00 chg: -0.01 stop: 63.66 *new*

In spite of the market's generally bullish tone on Tuesday shares of MTD spent the session consolidating flat to down. Only a late afternoon bounce helped erase most of its minor losses today. We are adjusting our stop loss to breakeven at $63.66. Our target is the $68-69 range. We do not want to hold over the late October earnings report.

Picked on September 13 at $ 63.66
Change since picked: + 2.34
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 169 thousand

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Omnicom - OMC - close: 93.57 chg: +0.21 stop: 89.89

Trading in OMC was mostly sideways on Tuesday but the stock does appear to have broken its three-day trend of lower highs. We are not suggesting new positions at this time. Our target is the $96.00-97.00 range. We do not want to hold over the late October earnings.

Picked on September 10 at $ 90.97
Change since picked: + 2.60
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Caterpillar - CAT - close: 65.11 chg: -0.25 stop: 67.36

The DJIA may have hit a new high but it did so without the help of Dow-component CAT. The stock sank lower at the open, tried to bounce but the rebound eventually ran out of gas. Today's session looks bearish and traders can use it as a new entry point to buy puts. Our target is the $60.25-60.00 range but more aggressive traders may want to aim lower. We do not want to hold over the late October earnings report.

Picked on September 21 at $ 64.59
Change since picked: + 0.52
Earnings Date 10/20/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Chipotle - CMG - close: 49.50 change: +0.50 stop: 52.61

CMG was creeping higher most of the day and managed to close with a 1% gain but the rally stalled near the $50 level, which is round-number resistance. We remain bearish and continue to target the $45.50-45.00 range. We do not want to hold over the late October earnings report.

Picked on September 28 at $ 49.45
Change since picked: + 0.05
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 459 thousand

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Monster - MNST - close: 38.00 change: +0.84 stop: 37.55

MNST continues to rebound and shares added 2.2% on Tuesday. Fortunately, we're still sitting on the sidelines waiting for a breakdown. We're starting to wonder if MNST is going to cooperate and head lower or will it breakout higher over resistance near $38.00 and its 50-dma near 39.00. If MNST closes over $38.00 we'll drop it as a bearish candidate. Currently we are suggesting a trigger to buy puts at $34.65, which is under the June 2006 low. If triggered our target is the $30.50-30.00 range. If you study the weekly chart you'll notice a long-term trendline of support stretching out just above the $30 level. More conservative traders might want to exit earlier near $31.00. We do not want to hold over the late October earnings report.

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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Maxim Integrated - MXIM - close: 28.04 chg: +0.27 stop: 30.05

It was a mixed day for the semiconductors. MRVL's negative earnings news weighed on the sector. The SOX index broke down from its bullish rising channel. Yet shares of MXIM failed to follow. MXIM bounced for a 0.9% gain. Given the breakdown in the SOX we're going to remain bearish but more conservative traders may want to adjust their stops on MXIM toward the $29 level. Our target for MXIM is the $24.00 level.

Picked on September 25 at $ 27.90
Change since picked: + 0.14
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume = 5.4 million

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FreightCar Amer. - RAIL - close: 53.02 chg: +0.52 stop: 56.32

Railroad stocks were a pocket of strength on Tuesday. That raises the risk factor on RAIL. Shares of RAIL did produce a bounce and closed with a 0.99% gain but it looks like the stock produced a failed rally under the $54.00 level this afternoon. More conservative traders may want to tighten their stops on RAIL due to strength in the sector. We're not suggesting new positions. Right now we're suggesting two targets because RAIL appears to have some support near $50.00. We suggest selling half or more of your position at our first target in the $50.25-50.00 range. Sell the rest at our second target in the $46.00-45.00 range. The P&F chart points to a $42 target.

Picked on September 21 at $ 54.50
Change since picked: - 1.48
Earnings Date 10/26/06 (confirmed)
Average Daily Volume = 353 thousand

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Sears Holding - SHLD - close: 159.62 chg: +2.23 stop: 162.05

Warning! Yesterday's failed rally in SHLD has reversed. The retail stocks were one of the best performing sectors on Tuesday. The RLX index added 1.8%. Driving the move in retailers was the drop in oil. Lower oil means lower gas prices and that means more discretionary income for consumers. More conservative traders might want to tighten their stops toward today's high or the $161 level. We would not suggest new positions at this time.

Picked on October 01 at $158.09
Change since picked: + 1.53
Earnings Date 11/16/06 (unconfirmed)
Average Daily Volume = 1.8 million

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U.S.Steel - X - close: 55.06 chg: -2.25 stop: 60.05

Steel-related stocks were trading lower today in addition to metals, mining, and materials. Shares of X lost 3.9% on above average volume. We've bee suggesting that a move under $56 could be used as a new entry point to buy puts. Our target is the $50.25-50.00 range.

Picked on September 22 at $ 55.95
Change since picked: - 0.89
Earnings Date 10/31/06 (confirmed)
Average Daily Volume = 4.4 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.)

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Boston Properties - BXP - close: 103.84 chg: +0.61 stop: n/a

BXP is bouncing and it looks like the next move is going to be up. The stock is now outside our suggested entry range to open a strangle position but it hasn't moved so far that we wouldn't consider a new position. Our suggested options are the October $105 call (BXP-JA) and the October $100 put (BXP-VT). Our estimated cost is about $1.90. We're suggesting an exit if either option rises to $3.80 or higher. Remember, this is an aggressive play due to our three-week time frame. October options expire in three weeks. FYI: We do not want to confuse readers but more aggressive traders might want consider turning this into a directional call play and buy calls with a stop loss under $102.

Picked on October 01 at $103.34
Change since picked: + 0.50
Earnings Date 10/24/06 (confirmed)
Average Daily Volume = 694 thousand

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Google - GOOG - close: 404.04 chg: +2.60 stop: n/a

If you were looking for a preferred strangle entry point at the $400.00 level then you got it. GOOG flitted back and forth across the $400 mark several times. At the end of the day it was more of the same with shares trading sideways. GOOG is still trading inside our suggested entry range of $395.00-405.00 but the closer to $400 the better. The company is now expected to report earnings on Oct. 31st. We do plan to hold over that report. We're suggesting the November $440 call (GOP-KH) and the November $360 put (GGD-WL). Our estimated cost for this position is about $13.00. Our suggested exit is at $24.00 or higher.

Picked on October 01 at $401.90
Change since picked: + 2.14
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 5.6 million
 

Dropped Calls

General Dynamics - GD - close: 74.14 change: +0.69 stop: 69.94

Target achieved. The market strength today helped fuel another surge in GD. The stock traded to an intraday high and new all-time high of $74.87 before paring its gains. Our target was the $74.50-75.00 range. Volume came in above average on today's strength which is a bullish sign. We would not suggest chasing GD. Keep an eye on it for a pull back toward $72 or its 10-dma before considering new positions.

Picked on September 24 at $ 70.61
Change since picked: + 3.53
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 1.3 million
 

Dropped Puts

SanDisk - SNDK - close: 53.31 chg: +0.11 stop: 56.06

Target achieved. SNDK was weak at the open this morning and shares dipped to $52.00 before bouncing. Our target was the $52.00-51.00 range. The play is closed for us but more aggressive traders may want to aim lower. The P&F chart points to a $45 target. Be advised that the $50 level has proven to be support in the past.

Picked on September 22 at $ 56.69
Change since picked: - 3.38
Earnings Date 10/19/06 (confirmed)
Average Daily Volume = 9.9 million
 

Dropped Strangles

None
 

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