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Call Updates

Allegheny Tech - ATI - cls: 102.99 change: +0.40 stop: 97.45

Steel stocks turned in a mixed performance on Tuesday and ATI's 0.38% gain actually looks like relative strength compared to the sector. The stock dipped this morning but traders stepped in and bought the dip near $100.80. We remain bullish and don't see any changes from our weekend comments on ATI. The Point & Figure chart is forecasting a $108 target. We are suggesting bullish call positions with the stock above $100 although more conservative traders may want to wait for a breakout to a new high over $105. Our target is the $109.00-110.00 range.

Picked on February 18 at $102.59
Change since picked: + 0.40
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.8 million

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Boeing - BA - close: 91.03 change: +0.09 stop: 87.99

BA experienced some volatility this morning. Shares spiked toward $91.70 and then plunged to under the $90.00 level before bouncing back by noon. BA spent the rest of the session trading sideways in a relatively narrow range. We couldn't find any specific news to account for the weakness this morning. We remain bullish and we're sticking to our plan to use a trigger to buy calls at $92.51. If triggered our target is the $99.50-100.00 range. More aggressive traders may want to jump in early on a bounce near $90 or a move over $92.00. FYI: The P&F chart shows a fresh triple-top breakout buy signal with a $107 target.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 3.9 million

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Diageo - DEO - close: 81.99 change: +0.61 stop: 78.45

DEO continued to rebound and shares posted a 0.7% gain on Tuesday. Volume came in a little bit above the daily average, which is positive. Our only concern was how shares struggled with resistance at the top of its gap higher from last week. DEO looks like it's coiling for a breakout higher if you look at the intraday chart. Our short-term target is the $84.75-85.00 range although more aggressive traders may want to aim higher. FYI: The P&F chart points to an $89 target.

Picked on February 14 at $ 81.04
Change since picked: + 0.95
Earnings Date 02/15/07 (confirmed)
Average Daily Volume = 452 thousand

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Chinese iShares - FXI - close: 107.21 chg: +0.31 stop: 103.99

This looks like another bullish entry point. After some initial indecision this morning shares of FXI began to rise, which helps confirm last week's breakout over its short-term trendline of resistance. Today's gain also contributed to a new MACD buy signal on the daily chart. We are suggesting calls with the FXI above $106.50. Our target is the $114.00-115.00 range. We do expect some resistance near $110 so expect a short-term pull back after testing the $110 region.

Picked on February 18 at $106.90
Change since picked: + 0.31
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 1.9 million

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OM Group - OMG - close: 51.89 change: +0.53 stop: 48.05

We do not see any changes from our weekend comments on OMG. The stock continues to trade sideways and looks like it's coiling for a bullish breakout over resistance at the $52 level. We are not suggesting new bullish call positions at this time although a breakout over $52 could be used as a new entry point. If you choose to buy a new breakout consider raising your target. We're only aiming for the $54.00-55.00 range. FYI: More conservative traders may want to exit early now and lock in a gain.

Picked on January 25 at $ 48.05
Change since picked: + 3.84
Earnings Date 03/02/07 (unconfirmed)
Average Daily Volume = 770 thousand

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Research In Motion - RIMM - cls: 141.62 chg: +2.80 stop: 132.39

Our call play in RIMM is now open. The stock broke out from a two-week trading range and broke through resistance near $140.00. Our trigger to open call plays was at $140.51. There is potential resistance near $142.50 and $145.00 at the November and January highs but we suspect that given the current bullishness for stocks that RIMM can trade higher. Our target is the $149.00-150.00 range. We do have a wide stop loss placing it under last week's low. The P&F chart has reversed into a buy signal that points to a $176 target.

Picked on February 20 at $140.51
Change since picked: + 1.11
Earnings Date 03/22/07 (unconfirmed)
Average Daily Volume = 9.1 million

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RTI Int. - RTI - close: 86.98 change: +3.14 stop: 79.75

RTI displayed plenty of relative strength today with a bullish breakout from its two-week trading range and a breakout over resistance near $85.00. Many of the metal-related stocks turned in a lackluster session but RTI rose 3.7% to post a new all-time high. We are not suggesting new positions and more conservative traders may want to exit early right now to lock in a gain. Our target is the $88.00-90.00 range.

Picked on January 31 at $ 81.75
Change since picked: + 5.23
Earnings Date 03/12/07 (unconfirmed)
Average Daily Volume = 737 thousand

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Rio Tinto - RTP - cls: 221.97 chg: +1.17 stop: 212.45

We do not see any changes from our weekend update on RTP. The pattern continues to look bullish. Readers need to choose between opening call positions here or waiting on a potential dip toward the 10-dma (near $216.5). Technical indicators on both the weekly and daily charts are turning positive. RTP will probably have some resistance at its November 2006 highs near $230 but our target is the $237.50-240.00 range. FYI: RTP is a high-dollar stock and is bound to see some bigger swings (volatility) and this makes the options somewhat "expensive". Consider this a more aggressive play.

Picked on February 14 at $221.15
Change since picked: + 0.82
Earnings Date 02/01/07 (confirmed)
Average Daily Volume = 437 thousand

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Sears Holding - SHLD - cls: 189.08 chg: +1.82 stop: 179.89 *new*

Positive comments and a strong performance from retail titan Wal-Mart (WMT) helped push the RLX retail index to a new all-time high. Shares of SHLD followed with a 0.9% gain and its own new all-time high. This morning's dip and bounce near the $185 level in SHLD looked like a great entry point for new positions. The $190 level might be short-term resistance so don't be surprised to see a pull back from here. More conservative traders might want to consider taking some money off the table. We are going to tighten the stop loss to $179.89. The Point & Figure chart points to a $228 target. We are aiming for the $195.00-200.00 range. We do not want to hold over the mid March earnings.

Picked on February 14 at $183.64
Change since picked: + 5.44
Earnings Date 03/15/07 (unconfirmed)
Average Daily Volume = 1.2 million
 

Put Updates

Harley Davidson - HOG - cls: 69.81 chg: +1.77 stop: 70.11

Warning! We warned readers over the weekend that a late day announcement on Friday about a potential settlement between HOG and its striking workers would send the stock higher. Shares gapped open at $68.70 and traded to $70.10 before pulling back. You can't get any closer to being stopped out. Today's gain is a bullish breakout over HOG's trendline of resistance so traders may want to exit early now. Odds are good that HOG will see some follow through tomorrow and stop us out! We're not suggesting new positions unless we see a very clear failed rally under $70.00.

Picked on February 11 at $ 67.80
Change since picked: + 2.01
Earnings Date 04/19/07 (unconfirmed)
Average Daily Volume = 2.3 million

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MarineMax - HZO - close: 23.50 change: +0.98 stop: 24.25

We cannot explain the reason behind the rally in HZO today. Shares bounced from the $22.00 level on Friday and the rebound continued today. The sharp move higher this morning and the dip buying late this afternoon looks a bit like a short squeeze. HZO does have a high amount of short interest. More conservative traders may want to exit immediately following today's breakout over short-term resistance near $23.00. Our target is the $20.25-20.00 range.

Picked on February 11 at $ 22.59
Change since picked: + 0.91
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 thousand

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Meritage - MTH - close: 43.33 change: -0.23 stop: 45.26

There was no follow through buying in MTH today after last week's big bounce. The stock continues to struggle under short-term resistance near $44.00. We would wait for a new decline under $42.00 before considering new positions. More conservative traders might want to tighten their stops. The P&F chart has produced a triple-breakdown sell signal with a $37.00 target. We are aiming for the $37.50-37.00 range.

Picked on February 11 at $ 41.99
Change since picked: + 1.34
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 473 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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