Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Apache - APA - close: 68.91 chg: -1.89 stop: 67.95

Oil stocks took a beating like most of the market on Tuesday but shares of APA managed to recoup some of its losses and close with a 2.6% decline. The OIX oil index slipped 3.4% versus a 3.29% decline in the DJIA and a 3.47% decline in the S&P 500. Shares of APA dipped toward short-term support near $68.00 before bouncing. A rebound from here could be used as a new bullish entry point but we'd probably wait for a new rally past the $70.00 mark before considering new call positions. Overall the action in the markets today was very bearish and more conservative traders may just want to exit early! Our target is the $74.50-75.00 range.

Picked on February 22 at $ 70.40
Change since picked: - 1.49
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume = 3.3 million

---

Diageo - DEO - close: 79.71 change: -2.31 stop: 78.95 *new*

Weakness in equities was global on Tuesday and DEO was no exception. The stock lost 2.8% and broke down under what should have been support at the $80 level. Yet shares managed to hold on to support at its rising 50-dma. More conservative traders may want to just bail out right away. We are raising our stop loss to $78.95. 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: - 1.33
Earnings Date 02/15/07 (confirmed)
Average Daily Volume = 452 thousand
 

Put Updates

MarineMax - HZO - close: 22.54 change: -0.23 stop: 24.05

If HZO is not going to decline when the rest of the world is in sell-off mode then bears may be in trouble. The stock lost 1% but spent most of the day trading sideways. We are not suggesting new positions at this time until HZO breaks down under the $22.00 level. The P&F chart continues to point to a $2.00 target. Our target is the $20.25-20.00 range.

Picked on February 11 at $ 22.59
Change since picked: - 0.05
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 thousand

---

Meritage - MTH - close: 38.88 change: -1.47 stop: 42.55*new*

The homebuilders lost 3.5% and shares of MTH under performed its peers with a 3.6% decline and a breakdown under support at the $40.00 level. Shares are nearing our target in the $37.50-37.00 range. We are adjusting the stop loss to $42.55.

Picked on February 11 at $ 41.99
Change since picked: - 3.11
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 473 thousand
 

Strangle Updates

None
 

Dropped Calls

Boeing - BA - close: 87.20 change: -1.73 stop: 87.99

Shares of BA lost another 1.9% and continued a sell-off that actually began last week. We were on the sidelines waiting for a breakout above the $92 level with a suggested trigger to buy calls at $92.51, which has not yet been hit. Given today's breakdown we're dropping BA as a bullish candidate.

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

---

Celgene - CELG - close: 53.17 change: -4.05 stop: 53.85

The sell-off in the markets on Tuesday hit the BTK biotech index for a 3.6% loss. This breakdown from the BTK's consolidation pattern could be the beginning of a larger correction but the BTK managed a minor bounce from old support near 740. Meanwhile shares of CELG really under performed its peers and shares collapsed with a 7% sell-off on big volume. The stock plunged through multiple levels of support before finally coming to a rest near support in the $53 region. We would have been stopped out at $53.85.

Picked on February 25 at $ 56.28
Change since picked: - 3.11
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume = 3.5 million

---

Freeport McMoran - FCX - cls: 55.75 chg: -6.17 stop: 55.85

Shares of FCX were upgraded this morning but it had no affect on the stock price. The news that China was going to try and curb speculative buying was somehow interpreted as a potential slow down by the Chinese for commodities, including gold. This hit the gold stocks hard. The GOX gold index lost 7.1%. The XAU index lost 6.9%. Shares of FCX gapped open lower at $59.55 and then dropped to an intraday low of $55.25 before closing with a 9.9% decline. We would have been stopped out at $55.85.

Picked on February 22 at $ 59.25
Change since picked: - 3.50
Earnings Date 04/17/07 (unconfirmed)
Average Daily Volume = 6.5 million

---

Chinese iShares - FXI - close: 95.00 chg: -10.40 stop: 103.99

The global weakness began in the Chinese markets after the government announced plans to curb speculative buying. The Chinese market closed down 8.8% and this was reflected in the FXI traded in New York. The Chinese ishares ETF gapped open lower at $100.21 and then plunged to an intraday low of $92.55. Our stop loss was at $103.99 so we would have been stopped out at the open.

Picked on February 18 at $106.90
Change since picked: -11.90
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 1.9 million

---

Ryder Sys. - R - close: 52.20 chg: -1.31 stop: 53.45

Monday's bearish reversal in R looks a lot worse now with a 2.4% decline and a breakdown under the 200-dma on big volume. We were waiting for a breakout over $55.50 with a trigger at $55.75. However, given the new weakness we're just going to drop R as a bullish candidate.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/04/07 (unconfirmed)
Average Daily Volume = 580 thousand

---

Research In Motion - RIMM - cls: 138.70 chg: -8.07 stop: 136.75

We have been stopped out of RIMM at $136.75, which is our new stop loss from Monday's update. Big weakness in the NASDAQ weighed on RIMM, which lost 5.49% after breaking out to new highs on Monday. If the markets rebound a new rally past $142.50 might be a new entry point.

Picked on February 20 at $140.51
Change since picked: + 6.26
Earnings Date 03/22/07 (unconfirmed)
Average Daily Volume = 9.1 million

---

Rio Tinto - RTP - cls: 215.13 chg: -15.47 stop: 216.99

RTP is another gold stock that got creamed today. Concerns that the Chinese might cut back on their demand for commodities sparked a huge sell-off in gold stocks. Shares of RTP gapped open lower at $220.83 and plunged to an intraday low of $214.45. Our stop loss was at $216.99.

Picked on February 14 at $221.15
Change since picked: - 6.02
Earnings Date 02/01/07 (confirmed)
Average Daily Volume = 437 thousand

---

Sealed Air - SEE - close: 64.37 chg: -2.01 stop: 64.84

We have been stopped out of SEE at $64.84. The market-wide sell-off sparked a 3% pull back in SEE. Furthermore today's decline has produced a bearish sell signal with the breakdown under $65 and its 50-dma.

Picked on February 25 at $ 66.82
Change since picked: - 2.45
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 296 thousand

---

Sears Holding - SHLD - cls: 178.54 chg: -8.10 stop: 179.89

We have been stopped out of SHLD at $179.89. After hitting all-time highs just a few days ago SHLD was a big target for profit taking during today's carnage.

Picked on February 14 at $183.64
Change since picked: - 5.10
Earnings Date 03/15/07 (unconfirmed)
Average Daily Volume = 1.2 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives