Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Cigna - CI - close: 139.86 chg: -0.05 stop: 134.35

The trading in CI continues to look bearish with a short-term trend of lower highs confirmed by today's failed rally near its 10-dma. We're still trying to catch a pull back near support but the technical indicators are growing more bearish and it's becoming more important that readers wait for signs of a bounce first instead of just buying the first dip into our suggested entry 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

---

ESSEX Prop. - ESS - cls: 125.08 chg: -4.00 stop: 125.95

Wow! There was no continuation of yesterday's bounce in ESS today. The stock gapped open lower, tried to rebound and then crashed for a 3% loss on big volume! Shares closed right on support near $125 and its simple 200-dma. We are still waiting for a rally past resistance near $130.00 but yesterday's gains is starting to look like nothing but a dead-cat bounce. Aggressive traders may want to consider buying a bounce from current levels ($125) but we'd use a tight stop (near $124.75). Our current plan suggests a trigger to buy calls at $130.26. If triggered our target is the $$137.00-140.00 range, which is where ESS will encounter its 50-dma again. FYI: We didn't see any news about ESS' presentation at a conference today.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/07/07 (confirmed)
Average Daily Volume = 196 thousand

---

Noble Energy - NBL - close: 58.45 chg: +0.43 stop: 55.75

Oil stocks were stronger today thanks to a strong 1.9% rally in crude oil toward $62 a barrel. NBL rose 0.7% on slightly better than average volume. We would still consider new positions now or on a dip near $58.00-57.50. More aggressive traders may want to put their stops under $55.00. We do expect some resistance near $60.00 but our target is the $62.00-62.50 range.

Picked on March 06 at $ 58.02
Change since picked: + 0.43
Earnings Date 05/24/07 (unconfirmed)
Average Daily Volume = 1.6 million
 

Put Updates

Ashland Inc. - ASH - cls: 62.74 chg: -0.26 stop: 68.25

ASH's failure to bounce still looks bearish. Aggressive traders might want to consider new positions here. We're not suggesting readers open new plays 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: - 3.08
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 770 thousand

---

Bausch Lomb - BOL - cls: 51.40 change: -0.19 stop: 52.51

There was no follow through on BOL's bounce from support on Tuesday, which is probably bearish. The stock remains under technical resistance at its 10-dma and 100-dma. Aggressive traders might want to consider new positions now. We're going to wait for a breakdown. Our plan suggests using a trigger to buy puts at $49.49. 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

---

Harman Intl - HAR - close: 97.78 change: -0.02 stop: 102.01

It looks like the bounce in HAR is already beginning to fail. Readers might want to consider new positions now. Or you can still 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: + 0.29
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 614 thousand

----

MarineMax - HZO - close: 21.56 change: -0.36 stop: 23.06 *new*

HZO continues to decline and shares fell 1.6% on Wednesday. We remain bearish and readers can use the failed rally near $22.00 as a new entry point. Our target is the $20.25-20.00 range. Please note that we're adjusting the stop loss to $23.06. 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: - 1.03
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 thousand
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives