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Call Updates

Cigna - CI - close: 139.91 chg: +0.80 stop: 134.35

The market internals during today's market-wide bounce were pretty bullish but many investors and traders were skeptical of the strength in today's rebound. It looks like traders in CI were not buying the bounce. The HMO healthcare index climbed 1.3% but shares of CI failed to keep pace with its peers. The stock did post a gain but a rather minor one at that. We still see a potential dip into the $137.00-135.00 range. Currently the plan is to buy calls on a pull back into the $135.00-137.50 range. Our official trigger to open plays will be $137.49 but we strongly suggest that readers wait for the dip to end and signs of a bounce to begin before opening positions. If triggered our target is the $145.00-146.00 range. We are suggesting a stop loss under the 50-dma.

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/09/07 (unconfirmed)
Average Daily Volume = 759 thousand
 

Put Updates

Ashland Inc. - ASH - cls: 63.00 chg: +0.54 stop: 68.25

ASH produced a 0.8% bounce following yesterday's sharp sell-off. The rebound struggled this afternoon and the worst may not be over yet. We would not suggest new positions at this time. Our target is the $60.50-60.00 range. FYI: More conservative traders may want to consider a tighter stop in the $67.00 or $67.50 region.

Picked on March 04 at $ 65.82
Change since picked: - 2.82
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 770 thousand

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Bausch Lomb - BOL - cls: 51.72 change: +1.30 stop: 52.51

It looks like market makers may have tried to trigger some stop losses with BOL's early morning dip to $49.90 just before the stock soared higher. The company issued some news this morning that fueled the rally. The company finally issued some earnings guidance. BOL now sees fiscal year 2006 under analysts' estimates due to the product recall last May. In separate news the company issued another recall. This one was a voluntary recall for some of its ReNue MultiPlus lens care solution due to higher than normal levels of iron. It looks like investors were happy that the earnings news was not worse than expected or today's bounce might just be a short covering rally for the same reason. We are still expecting more weakness and will stick to our plan with a trigger to buy puts at $49.49. More aggressive traders may want to jump in early with a drop under $49.89 while more conservative traders may want to wait for a decline under $49.00 to lessen the risk that we'll be triggered on an intraday spike lower. If we are triggered at $49.49 our target will be the $44.00-42.50 range.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/07 (unconfirmed)
Average Daily Volume = 678 thousand

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Harman Intl - HAR - close: 97.80 change: +1.41 stop: 102.01

After several days of declines an oversold bounce is expected. Today's gain in HAR looks minor. Watch for a failed rally near $100 or its 10-dma as a new bearish entry point to buy puts. Our target is the $92.50-90.00 range near its simple 200-dma. FYI: The P&F chart points to a very bearish $80 target.

Picked on March 04 at $ 97.49
Change since picked: + 0.31
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 614 thousand

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MarineMax - HZO - close: 21.92 change: +0.48 stop: 23.26

HZO bounced back toward broken support and what should be new resistance near $22.00. A failed rally in the $22.00-22.25 region can be used as a new entry point for shorts. Our target is the $20.25-20.00 range. FYI: It may be worth noting that HZO has a high amount of short interest. The latest data (February) puts short interest at almost 24% of the stock's 16.8 million-share float. That definitely increases the risk of a short squeeze should the stock unexpectedly rally and breakout higher.

Picked on February 11 at $ 22.59
Change since picked: - 0.67
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 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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