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Call Updates

Entergy - ETR - close: 80.45 change: +0.12 stop: 77.99

ETR continues to creep higher but it looks like the stock was forgotten as investors put their money into flashier sectors. We do not see any changes from yesterday's new play description. We are suggesting calls with ETR above $80.00 although another dip and bounce near $79.00 would also work. Our short-term target is the $84.00 level. We do not want to hold over the late October earnings report.

Picked on October 03 at $ 80.33
Change since picked: + 0.12
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Mettler Toledo - MTD - close: 66.30 chg: +0.30 stop: 63.66

MTD also looks like it was forgotten by traders during today's widespread market rally. Overall the pattern remains bullish. 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: + 2.64
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 169 thousand

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Omnicom - OMC - close: 93.76 chg: +0.19 stop: 89.89

OMC is another stock on our list that was relatively forgotten by investors during today's widespread market rally. We do not see any changes from our previous updates. 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: + 2.79
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Caterpillar - CAT - close: 65.54 chg: +0.43 stop: 67.36

The strength in the DJIA and the markets today appears to have inspired some bargain shopping in CAT. Traders bought the dip near $63.50 this morning. The move looks like a short-term bullish reversal. We're not suggesting new positions at this time and would expect the bounce to carry CAT toward the $67 level. More conservative traders may want to cut their losses early. 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: + 0.95
Earnings Date 10/20/06 (unconfirmed)
Average Daily Volume = 5.2 million

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Chipotle - CMG - close: 50.99 change: +1.49 stop: 52.61

A widespread rally combined with some high-profile better than expected same-store sales numbers in the restaurant sector helped lift shares of CMG. Investors may have decided that the pull back in oil prices will see more discretionary income move toward restaurants. Today's 3% rally in CMG is trouble for the bears since the stock has broken back above the $50 mark and its 50-dma. We are not suggesting new positions and considering the strong volume behind today's rally (which is bullish) more conservative traders may want to cut their losses early right here. We're not suggesting new positions at this time. We do not want to hold over the late October earnings report.

Picked on September 28 at $ 49.45
Change since picked: + 1.54
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 459 thousand

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Maxim Integrated - MXIM - cls: 28.83 chg: +0.79 stop: 29.21 *new*

Semiconductors rallied with the rest of the market and the SOX added 1.9%. Shares of MXIM out performed its peers with a 2.8% rebound. The trading in MXIM over the last several days has turned into a sideways trading range and if MXIM breaks out over $29.00 it will look like a short-term base. We are lowering our stop loss to $29.21 to reduce our risk. We're not suggesting new positions at this time.

Picked on September 25 at $ 27.90
Change since picked: + 0.93
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume = 5.4 million

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Phelps Dodge - PD - cls: 78.65 chg: -1.40 stop: 82.15

Copper mining stocks under performed the markets today as copper futures sank again. Shares of PD plunged to an intraday low of $76.31 before bouncing back this afternoon. Our suggested trigger to buy puts was at $78.45 so the play is now open. A failed rally under $80.00 would be another potential entry point to open positions. However, we suggest caution when opening any sort of bearish position given the market's bullishness on Wednesday. Our target for PD is the $72.50-70.00 range. We do not want to hold over the company's October earnings report. PD can be volatile so we consider this a higher-risk play.

Picked on October 04 at $ 78.45
Change since picked: + 0.20
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 5.1 million

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FreightCar Amer. - RAIL - close: 52.69 chg: -0.36 stop: 56.32

Shares of RAIL continue to show relative weakness. The transport stocks broke out higher today in a big way and railroad stocks followed. Yet RAIL failed to participate in the rally. This weakness is a good sign but we'd suggest against new plays at this time. 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: - 1.84
Earnings Date 10/26/06 (confirmed)
Average Daily Volume = 353 thousand

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U.S.Steel - X - close: 55.95 chg: +0.89 stop: 60.05

It's been about two weeks and we're right back where we started at $55.95. That may be a wash if you're trading stocks but that's a bad thing if you're trading options. Shares of X look like they want to trade lower but today's market rally was so broad based that X rebounded for a 1.6% gain. We're not suggesting new positions at this time and more conservative traders may want to tighten their stops.

Picked on September 22 at $ 55.95
Change since picked: - 0.00
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: 104.35 chg: +0.51 stop: n/a

BXP is still inching higher. We do not see any changes from our previous update. We're not suggesting new strangle positions at this time. 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 less than three weeks.

Picked on October 01 at $103.34
Change since picked: + 1.01
Earnings Date 10/24/06 (confirmed)
Average Daily Volume = 694 thousand

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Google - GOOG - close: 415.70 chg: +11.66 stop: n/a

Widespread strength on Wednesday, especially in tech stocks, helped GOOG breakout from its recent consolidation pattern. The stock is now outside of our suggested entry range to open strangle positions so we're not suggesting new plays. The options in our strangle strategy are 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: +13.80
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 5.6 million

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Legg Mason - LM - close: 102.00 change: +2.28 stop: n/a

LM bounced from the $99.00 level this morning and by the day's end had rallied toward short-term resistance near $102. The stock is now outside of our suggested entry range to open strangle plays so we're not suggesting new positions. The options in our strangle strategy are the November $105 calls (LM-KA) and the November $95.00 put (LM-WS). Our estimated cost is $5.15. We're suggesting an exit if either options rises to $7.25.

Picked on October 03 at $ 99.72
Change since picked: + 2.28
Earnings Date 10/24/06 (unconfirmed)
Average Daily Volume = 1.4 million
 

Dropped Calls

None
 

Dropped Puts

Monster - MNST - close: 39.12 change: +1.14 stop: 37.55

MNST continues to show relative strength and a breakdown under support near $35.00 looks like a may not happen. It was our plan to catch a breakdown under $35.00 but MNST never hit our trigger to open plays at $34.65. Thus we're dropping the stock as a bearish candidate.

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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Sears Holding - SHLD - close: 163.66 chg: +4.00 stop: 162.05

We have been stopped out of SHLD at $162.05. The widespread market rally combined with some better than expected same-store sales announcements in the retail sector helped push the RLX retail index to a 2.1% gain. Shares of SHLD out performed the group with a 2.5% rally. We had warned readers yesterday about a potential follow through higher.

Picked on October 01 at $158.09
Change since picked: + 5.53
Earnings Date 11/16/06 (unconfirmed)
Average Daily Volume = 1.8 million
 

Dropped Strangles

None
 

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