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Call Updates

Apple Inc. - AAPL - cls: 91.13 chg: +1.54 stop: 87.49

Breakout! The bullish technical breakout in AAPL on Monday is a new entry point to buy calls. We were suggesting a trigger to open positions at $91.01 so the play is now open. Our target is the $97.50-100.00 range. The stock got a boost from positive comments about AAPL's AppleTV product and there were rumors of a possible stock split coming soon. The last stock split was a 2-for-1 on February 28, 2005 when shares were trading just under $90.

Picked on March 19 at $ 91.01
Change since picked: + 0.12
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 35 million

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Allegheny Tech. - ATI - cls: 104.73 chg: +2.43 stop: 97.95

Shares of ATI continued to show relative strength. The stock added 2.3% but stalled just under short-term resistance at the $105 level. Volume behind today's move was below average, which should make the bulls a little cautious. If ATI can breakout past $105 the next stop should be its all-time highs near resistance around $110. Our target is the $109.00-110.00 range. We do not want to hold over the late April earnings report. FYI: The P&F chart points to a $123 target.

Picked on March 14 at $101.50
Change since picked: + 3.23
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Celgene - CELG - close: 53.29 chg: +1.27 stop: 49.45

Biotech stocks turned in a strong session with the BTK index rising 1.3% and apparently breaking out higher from its recent sideways consolidation. Shares of CELG responded with a 2.4% rally and a new two-week high. We were suggesting that readers buy calls at $52.65 so the play is now open. Our target is the $57.50-60.00 range. Watch the 50-dma and 100-dma for potential resistance between $53 and $55. We do not want to hold over the late April earnings report.

Picked on March 19 at $ 52.65
Change since picked: + 0.64
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 3.5 million

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Cigna - CI - close: 143.94 chg: +1.61 stop: 136.99 *new*

Shares of CI are quickly nearing our target in the $145.00-146.00 range. More conservative traders may want to do some profit taking now since shares rose another 1.1% and the stock is up almost six and a half points from our trigger price. We're adjusting the stop loss to $136.99.

Picked on March 13 at $137.49
Change since picked: + 6.45
Earnings Date 05/09/07 (unconfirmed)
Average Daily Volume = 759 thousand

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ConocoPhillips - COP - cls: 65.65 chg: +0.31 stop: 65.74

We do not see any changes from our weekend comments on COP. Oil stocks turned higher on Monday in spite of a pull back in crude oil. Shares of COP lagged the group but appear to be bouncing from the $65 level. Aggressive traders might want to consider buying the bounce. We are going to stick to our plan for now. We are suggesting a trigger to buy calls at $69.01 since a move over $69.00 would produce a new triple-top breakout buy signal on the P&F chart. If we are triggered at $69.01 our target is the $74.00-75.00 range. We do not want to hold over the late April earnings report.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 12.1 million

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ESSEX Prop. - ESS - cls: 130.64 chg: +2.18 stop: 125.95

This looks like a new entry point in ESS. The stock displayed strength on Monday with a 1.6% gain and a bullish breakout over the $130 level. We'd keep a cautious eye on the 100-dma and the 50-dma as potential resistance but our target is the $137-140 zone.

Picked on March 12 at $130.26
Change since picked: + 0.38
Earnings Date 02/07/07 (confirmed)
Average Daily Volume = 196 thousand

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Holly Corp. - HOC - cls: 58.69 chg: +1.71 stop: 54.95

HOC helped lead the rally higher in oil stocks. Shares gapped open higher and broke out past very short-term resistance at the $58.00 level. Monday's 3% gain put the stock at a new all-time high. This looks like another entry point to buy calls. Our target is the $62.00-62.50 range. The P&F chart is bullish with a $74.00 target.

Picked on March 14 at $ 57.87
Change since picked: + 0.82
Earnings Date 05/14/07 (unconfirmed)
Average Daily Volume = 651 thousand

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Accredited Home Lenders - LEND - cls: 8.95 chg: -1.95 stop: n/a

Monday turned out to be a rough session for LEND. The stock sank almost 18% after news surfaced that the company was facing a class action lawsuit and that the NASDAQ had sent the company a delisting notice. Remember this is a high-risk play and we're speculating on a buyout occurring. If a buyout doesn't occur then we'd consider an exit in the $14-15 range.

Picked on March 14 at $ 6.04
Change since picked: + 2.91
Earnings Date 05/16/07 (unconfirmed)
Average Daily Volume = 3.0 million

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New Century - NEWC - close: 2.17 chg: -0.17 stop: n/a

NEWC also turned lower on Monday. We're not suggesting new positions at this time since odds seem greater that NEWC will file bankruptcy before announcing it's being acquired.

Picked on March 11 at $ 3.21
Change since picked: - 0.87
Earnings Date 11/02/06 (confirmed)
Average Daily Volume = 6.7 million

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Sunoco - SUN - close: 67.13 chg: +1.23 stop: 63.95

We do not see any changes from our weekend comments on SUN. The stock rose 1.8% and is nearing resistance at the $68 level. Aggressive traders may want to buy this bounce. We're going to stick to our plan, which suggests using a trigger to buy calls at $68.15. If triggered our target is the $74.00-75.00 range. We do expect some resistance near $70.00. The P&F chart is very bullish with an $82 target. As a refiner, SUN, should do very well over the summer driving season and investors should eventually begin buying ahead of the summer quarter.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 2.8 million

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Molson Coors - TAP - cls: 90.03 chg: +1.20 stop: 84.49

The rally continues in TAP. The stock surged toward potential round-number resistance at the $90 level and didn't see a lot of selling, which is good news. We're not suggesting new positions at this time. Our target is the $92.50-95.00 range. The P&F chart is very bullish with a bullish triangle breakout buy signal that forecasts a $134 price target.

Picked on March 14 at $ 87.15
Change since picked: + 2.88
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume = 782 thousand
 

Put Updates

Ashland Inc. - ASH - cls: 63.52 chg: +0.52 stop: 66.05

ASH bounced back toward the $64 level again but failed to maintain its early gains. It does look like the stock is trying to rebound so we're not suggesting new positions at this time. More conservative traders may want to use a tighter stop.

Picked on March 04 at $ 65.82
Change since picked: - 2.30
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 770 thousand

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Bausch Lomb - BOL - cls: 48.79 change: -0.72 stop: 52.51

Friday's bearish technical breakdown under support at the $50.00 level experienced some high-volume follow through today. Shares lost another 1.45% on volume that was about twice the daily average. We would still consider new positions if you missed the recent breakdown. Our target is the $44.00-42.50 range but we want to warn readers that BOL may find some support near $47.50 and its December 2006 low.

Picked on March 18 at $ 49.51
Change since picked: - 0.72
Earnings Date 00/00/07 (unconfirmed)
Average Daily Volume = 678 thousand

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Beazer Homes - BZH - close: 32.55 chg: +0.55 stop: 36.25

Many of the homebuilders were bouncing on Monday. This week brings a lot of data for the homebuilding industry so we need to expect some volatility. Shares of BZH rose 0.5% but remains in a bearish pattern and near 52-week lows. We hesitate to suggest new positions right here. Our target is the $30.50-30.00 range. FYI: Traders should note that BZH does have a relatively high amount of short interest (17% of the float) and that does raise the risk of a short squeeze.

Picked on March 12 at $ 34.20
Change since picked: - 1.65
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 1.2 million

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Electronic Arts - ERTS - cls: 48.98 chg: +0.06 stop: 51.55

We consider ERTS' six-cent bounce today as a lack of participation in the market's widespread rally. With this sort of relative weakness we feel comfortable with new put positions in ERTS under $50.00. If you prefer than look for another failed rally under the $50 level or its 200-dma. Of you could look for a new low under $48.40 before initiating positions. Our target is the $45.00-44.00 range near the July 2007 gap. The P&F chart looks pretty bearish with a failed rally under resistance and a $40 target.

Picked on March 18 at $ 48.92
Change since picked: + 0.06
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume = 4.0 million

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Harman Intl - HAR - close: 98.29 change: +0.98 stop: 102.01

Shares of HAR posted a 1% gain but the move today looks more like a bearish failed rally. The stock rose to $99.61 before quickly reversing and on the daily chart is looks like a short-term bearish reversal under round-number resistance at $100 and its 50-dma. More aggressive traders may want to open new put positions now. We would wait for more follow through lower before initiating new positions. More conservative traders may want to use tighter stops. 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: + 0.80
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 614 thousand

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MarineMax - HZO - close: 21.13 change: +0.52 stop: 22.59

The market's widespread bounce helped HZO produce an oversold bounce of its own. Shares rose 2.5% but failed to breakout over the simple 10-dma. We're not suggesting new positions at this time. Our target is the $20.25-20.00 range. More conservative traders may want to exit early right. 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: - 1.46
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 300 thousand

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Ryland Group - RYL - close: 44.54 chg: -0.22 stop: 48.27

RYL continues to show relative weakness. Many of the homebuilders were bouncing today but RYL lost another 0.49%. Today's action looks like another entry point to buy puts. If you prefer you may want to wait for a new decline under $44.50 before initiating positions. More conservative traders may want to use a tighter stop loss. Our target is the $40.50-40.00 range. FYI: The P&F chart for RYL points to a $29 target. The stock does have a high amount of short interest at 24% of the float and that raises the risk of a short squeeze.

Picked on March 13 at $ 44.75
Change since picked: - 0.21
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 1.1 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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