Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Cigna - CI - close: 140.09 chg: +0.23 stop: 134.35

An overseas rally cast a positive glow across the U.S. markets. Yet shares of CI posted a marginal gain and oscillated on both sides of the $140 level. We don't see any changes from our previous comments although more aggressive traders might want to consider new positions on a breakout over $142.50. 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: 127.31 chg: +2.23 stop: 125.95

ESS was upgraded to an "out perform" rating this morning and the stock reacted with a 1.7% gain. Unfortunately, the rally struggled and ESS closed off its highs. Aggressive traders may want to consider buying a bounce above $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: 58.19 chg: -0.26 stop: 55.75

Crude oil futures didn't move much today and traders decided to do a little bit of profit taking in NBL. We are repeating our comments from last night that readers may want to start new positions on a dip in the $58.00-57.50 range. 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: + 0.17
Earnings Date 05/24/07 (unconfirmed)
Average Daily Volume = 1.6 million
 

Put Updates

Ashland Inc. - ASH - cls: 63.62 chg: +0.88 stop: 67.55 *new*

Market-wide strength helped ASH produce another oversold bounce. Shares rose 1.4% but struggled short-term resistance near $64.00. Volume came in pretty light, suggesting a lack of conviction behind today's gains. We are adjusting our stop loss to $67.55 and more conservative traders may want a tighter stop loss. We're not suggesting readers open new plays at this time. Our target is the $60.50-60.00 range.

Picked on March 04 at $ 65.82
Change since picked: - 2.20
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 770 thousand

---

Bausch Lomb - BOL - cls: 51.66 change: +0.26 stop: 52.51

This is the third day in a row that BOL has struggled to rise past the $52.00-52.20 zone. 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: 98.32 change: +0.54 stop: 102.01

HAR is still rebounding but shares are nearing the first level of overhead resistance at its 10-dma (currently near $99.13). We would use a failed rally under the 10-dma or the $100 level as a new entry point for 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: + 0.83
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 614 thousand

----

MarineMax - HZO - close: 21.90 change: +0.34 stop: 23.06

The market-wide strength also powered a 1.5% rebound in HZO. Shares might see a bounce attempt toward the $22.50 level, which is where HZO should encounter resistance with its trendline of lower highs. We're not suggesting new positions at this time. 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: - 0.69
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