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Call Updates

Akamai Technologies - AKAM - cls: 51.01 chg: +0.36 stop: 47.95

Markets were little changed on Wednesday ahead of the Thanksgiving holiday in the U.S. tomorrow. Technology stocks still managed to out perform and AKAM rose 0.7% after traders bought the dip near $50.00 this morning. We don't see any changes from our new play description from Tuesday night. The P&F chart is bullish with a $56 target. We would label this as an aggressive, higher risk entry point since AKAM does have short-term resistance at $52.00 and again near $53.00. More conservative traders may want to decide and wait for further strength before considering new positions. Our short-term target is the $57.00-60.00 range.

Picked on November 21 at $ 50.65
Change since picked: + 0.36
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume = 5.3 million

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Bear Stearns - BSC - close: 158.42 chg: +2.26 stop: 151.89*new*

The string of new highs in the broker-dealer stocks continued on Wednesday. Shares of BSC rose 1.44% to a new all-time high and the stock came within 50 cents of our target in the $159.00-160.00. Odds are good that BSC will hit our target on Friday but more conservative traders may want to jump the gun and exit early to lock in a gain now. We are raising our stop loss to $151.89.

Picked on November 14 at $151.89
Change since picked: + 6.53
Earnings Date 12/14/06 (unconfirmed)
Average Daily Volume = 1.5 million

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CNOOC - CEO - close: 86.62 change: +0.68 stop: 84.45

Shares of CEO experienced something of a volatile session in spite of sleepy U.S. markets. The Hong Kong Hang Seng index turned in a strong session on Wednesday and that would account for CEO's gap open higher in the U.S. markets this morning. Unfortunately, a drop in crude oil futures deflated CEO's rally attempt. We would watch for a dip back toward the $86.00-85.50 region as a new entry point to buy calls. Our target is the $89.50-90.00 range.

Picked on November 21 at $ 85.94
Change since picked: + 0.68
Earnings Date 03/23/07 (unconfirmed)
Average Daily Volume = 261 thousand

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FedEx - FDX - close: 118.63 chg: +1.05 stop: 113.90

FDX is finally starting to show some strength after four days of consolidating sideways. We remain optimistic but we are expecting some resistance at the $120 level. Don't be surprised to see FDX hit $120 and then dip back toward the $117-118 region, which we would use as a new entry point to buy calls. More conservative traders might want to consider a tighter stop loss. Our target is the $124.00-125.00 range. The P&F chart is more optimistic with a $153 target. FYI: We do not want to hold over the December earnings report.

Picked on November 15 at $117.15
Change since picked: + 1.38
Earnings Date 12/21/06 (unconfirmed)
Average Daily Volume = 1.9 million

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Fomento Econo. - FMX - close: 105.60 chg: +0.14 stop: 99.49

We don't see any changes from our previous updates on FMX. The stock continues to look bullish with a relatively steady trend of higher highs and higher lows. One thing we have noted is how volume has risen over the last couple of days while the stock hasn't. If this continues (high volume, no movement) we could be seeing distribution and a potential top. We would only consider new plays on a bounce from the rising 10-dma. Our target is the $107-110 range.

Picked on November 08 at $102.09
Change since picked: + 3.51
Earnings Date 10/27/06 (confirmed)
Average Daily Volume = 314 thousand

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KLA-Tencor - KLAC - close: 52.43 chg: +0.52 stop: 48.49*new*

Semiconductors reversed their weakness from Tuesday and the SOX index rose 1.2%. Shares of KLAC rose 1% and managed to close at a new eight-month high. Please note that we're raising the stop loss to $48.49. Our target is the $54.50-55.00 range. The stock appears to have solid resistance at $55.00.

Picked on November 14 at $ 50.81
Change since picked: + 1.62
Earnings Date 01/00/07 (unconfirmed)
Average Daily Volume = 3.9 million

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Sepracor - SEPR - close: 55.30 chg: +0.02 stop: 50.75

SEPR followed the markets and traded sideways on Wednesday. We don't see any changes from our previous updates. SEPR has significant resistance near $60 so we're aiming for the $59.50-60.00 range as our target.

Picked on November 19 at $ 54.69
Change since picked: + 0.59
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume = 2.3 million

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Thomas & Betts - TNB - close: 52.83 chg: -0.10 stop: 49.90

TNB also churned sideways on Wednesday and the stock continued to hug its rising 10-dma. If you're feeling optimistic shares were bouncing higher into the closing bell. Readers may want to use this rebound from the 10-dma as a new bullish entry point. Our target is the $56.00-57.00 range. Currently the P&F chart points to a $77 target.

Picked on November 12 at $ 51.36
Change since picked: + 1.47
Earnings Date 01/23/07 (unconfirmed)
Average Daily Volume = 471 thousand
 

Put Updates

Cardinal Health - CAH - cls: 62.16 chg: +0.28 stop: 64.05

There are no changes from our previous updates on CAH. The trend is still down but we remain wary and we're not suggesting new put positions at this time. Our target is the $58.00-57.50 range.

Picked on November 10 at $ 61.99
Change since picked: + 0.17
Earnings Date 10/27/06 (confirmed)
Average Daily Volume = 1.3 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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Caterpillar - CAT - close: 62.79 chg: +0.60 stop: n/a

Dow-component CAT managed to show some strength. The stock rose 0.96% and actually closed over its late October high by a penny. CAT has begun the process of "filling the gap" but now the stock has to contend with potential technical resistance at its 50-dma just overhead. We're not suggesting new strangle positions in CAT. The options in our strangle are the December $65 call (CAT-LM) and the December $55 put (CAT-XK). Our estimated cost was about $0.75. We want to exit if either options rises to $1.50. Don't forget that December options expire in about three weeks.

Picked on November 08 at $ 60.10
Change since picked: + 2.69
Earnings Date 01/19/06 (unconfirmed)
Average Daily Volume = 7.7 million

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Blue Nile - NILE - cls: 36.27 chg: +0.15 stop: n/a

We don't see any changes from our previous updates. We're not suggesting new strangle positions at this time. Our estimated cost was $2.40 and we're planning to sell if either side of our strangle rises to $3.90. The options in our suggested strangle are the January $45 call (JWU-AI) and the January $35 put (JWU-MG).

Picked on October 29 at $ 38.92
Change since picked: - 2.65
Earnings Date 10/30/06 (confirmed)
Average Daily Volume = 226 thousand
 

Dropped Calls

Gilead Sciences - GILD - close: 66.55 chg: -0.96 stop: 66.75

GILD has continued to show relative weakness following its failed rally at resistance near $70.00 on Monday. Today's session witnessed GILD breaking down under technical support at its rising 50-dma. We're going to drop GILD as a bullish candidate. It has been our plan to buy calls on a breakout over $70.00 with a trigger at $70.25 but the stock has failed to hit our trigger.

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/17/07 (unconfirmed)
Average Daily Volume = 3.7 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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