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Call Updates

BP Prudhoe Bay - BPT - close: 73.10 chg: +0.39 stop: 72.45

BPT gapped down this morning but traders bought the dip as oil stocks rebounded thanks to new strength in the crude oil futures. We are still on the sidelines waiting for a breakout over $75.00. If we are triggered at $75.05 than our target is the $79.00-80.00 range. FYI: A move over $75 would produce a new Point & Figure chart buy signal.

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 421 thousand

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Cerner Corp. - CERN - close: 46.76 chg: +0.17 stop: 46.45

CERN bounced from its early morning dip near $46 and its 50-dma. Aggressive traders might want to consider new positions but we are waiting for a breakout past resistance at $48.00. We're suggesting a trigger to buy calls at $48.05. If we don't see CERN move higher in the next couple of days we'll probably drop it as a bullish candidate. If triggered then our target is the $52.00-52.50 range. The $50.00 mark might offer some round-number resistance so expect a pull back on the initial test of $50. FYI: The Point & Figure chart projects a $76 target.

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume = 662 thousand

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Carpenter Tech. - CRS - cls: 115.19 chg: +4.57 stop: 109.99*new*

Steel stocks turned in a strong session. Shares of CRS rallied over the $115 level midday before experiencing a mild pull back this afternoon. Traders were quick to buy the dip and CRS now looks poised to run higher tomorrow. More conservative traders may want to exit now (Wednesday morning). We are already planning to exit tomorrow at the closing bell to avoid holding over the company's earnings report on Thursday. We're going to raise our stop loss to $109.99. Our target is the $118.00-120.00 range.

Picked on October 11 at $110.51
Change since picked: + 4.68
Earnings Date 10/26/06 (confirmed)
Average Daily Volume = 754 thousand

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Devon Energy - DVN - close: 69.00 chg: +2.48 stop: 64.72

Oil stocks produced a strong session thanks to new strength in the crude oil futures. DVN really turned in a big gain, running +3.7%, after Goldman Sachs raised their price target on the stock. More conservative traders may want to exit early right here. Our target is the $69.50-70.00 range. We do not want to hold over the November 1st earnings report.

Picked on October 15 at $ 64.72
Change since picked: + 4.28
Earnings Date 11/01/06 (confirmed)
Average Daily Volume = 5.6 million

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EOG Resources - EOG - close: 68.93 chg: +2.82 stop: 66.05*new*

EOG is another oil stock that enjoyed a strong session. The stock rose 4.2% on above average volume to breakout through the top of its recent trading range. The rally stalled right at its simple 200-dma near $69.00. More conservative traders may want to exit early due to potential technical resistance at the 200-dma. Our short-term target is the $69.50-70.00 range. More aggressive traders may want to aim higher. Please note that we're raising the stop loss to $66.05. We do not want to hold over the October 31st earnings report.

Picked on October 16 at $ 66.05
Change since picked: + 2.88
Earnings Date 10/31/06 (confirmed)
Average Daily Volume = 3.6 million

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Frontier Oil - FTO - close: 29.88 change: +0.96 stop: 27.75*new*

Shares of FTO dipped to its rising 200-dma near $28.25 and bulls were ready and waiting to buy the dip. The stock rebounded strongly posting a 3.3% gain. The stock managed to close over technical resistance at the 50-dma but is still struggling to trade over the $30.00 mark. However, FTO does look poised to move higher especially with today's bullish engulfing candlestick pattern. We are raising the stop loss to $27.75. If you failed to catch the dip this morning then a breakout over $30.00 could be used as a new entry point. Our target is the $32.50-33.00 range. We do not want to hold over the early November earnings report, which gives us less than two full weeks. FYI: The P&F chart is still bearish for FTO.

Picked on October 15 at $ 28.90
Change since picked: + 0.98
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 3.2 million

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Vimpel Comm. - VIP - close: 65.25 chg: +1.65 stop: 61.45*new*

VIP soared to new highs on Tuesday. The stock broke out over potential resistance at the $64.00 level and posted a 2.59% gain on rising volume (although volume is still below average). The MACD on the daily chart has produced a new buy signal. We are raising our stop loss to $61.45. Our target is the $67.50-70.00 range. We do not want to hold over the mid-November earnings.

Picked on October 12 at $ 62.17
Change since picked: + 3.08
Earnings Date 11/17/06 (unconfirmed)
Average Daily Volume = 1.0 million
 

Put Updates

None
 

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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Bear Stearns - BSC - cls: 153.80 chg: +2.21 stop: n/a

Bulls are at it again in BSC and the stock is hitting new highs. Shares added 1.45% on below average volume in spite of the stock's overbought condition and bearish MACD indicator. We're not suggesting new strangle plays at this time. The options in our strangle are the November 155 call (BSC-KK) and the November 145 put (BSC-WI). Our estimated cost was $4.00. We're planning to exit if either option rises to $6.00 or more.

Picked on October 22 at $150.19
Change since picked: + 3.61
Earnings Date 12/14/06 (unconfirmed)
Average Daily Volume = 1.6 million

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ConocoPhillips - COP - close: 61.40 chg: +0.69 stop: n/a

Strength in the oil sector on Tuesday helped lift COP toward the top of its current trading range and above its simple 50-dma. Tomorrow the company is expected to report earnings so we are no longer suggesting strangle positions. Wall Street is looking for COP to report $2.37 a share. Our estimated cost was about $1.15. We are suggesting an exit if either option rise to $2.00 or more. Our suggested options were the November $65 call (COP-KM) and the November $55 put (COP-WK).

Picked on October 15 at $ 60.03
Change since picked: + 1.37
Earnings Date 10/25/06 (confirmed)
Average Daily Volume = 9.8 million
 

Dropped Calls

Ambac Fincl. - ABK - close: 84.66 chg: -0.66 stop: 84.49

We have been stopped out of ABK at $84.49. The stock dipped to $84.41 this afternoon before producing a meager bounce into the closing bell. It was our plan to exit this afternoon anyway to avoid holding over the company's earnings report but we raised our stop loss last night to reduce our risk.

Picked on October 04 at $ 84.40
Change since picked: + 0.92
Earnings Date 10/25/06 (confirmed)
Average Daily Volume = 819 thousand

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CIGNA - CI - close: 117.67 change: -2.20 stop: 117.75

We have been stopped out of CI at $117.75. We warned readers last night that Monday's failed rally looked like a false start (bull trap). Shares of CI were weak right from the start this morning and plunged to $116.75 before bouncing.

Picked on October 23 at $120.25
Change since picked: - 2.58
Earnings Date 11/01/06 (confirmed)
Average Daily Volume = 1.3 million

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Fortune Brands - FO - close: 75.49 chg: +0.24 stop: 74.84

We have been stopped out of FO at $74.84. Shares of FO experienced some weakness this morning but traders bought the dip at $74.45 and pushed shares back into the green. We didn't see any specific news to account for the weakness and the breakdown under support near $75.00.

Picked on October 13 at $ 76.26
Change since picked: - 0.77
Earnings Date 10/27/06 (confirmed)
Average Daily Volume = 745 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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