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Call Updates

Apple Inc. - AAPL - cls: 94.50 chg: +0.85 stop: 88.85

News that the EU Commission has begun an anti-trust inquiry in AAPL's iTunes service failed to keep the stock from rising 0.9% on Tuesday. Overall the trend remains positive but the end of day dip in shares of AAPL saps our enthusiasm to chase it here. There is still a chance that shares will dip toward $92.50, which is where we'd look for a new entry point. Our target is the $97.50-100.00 range.

Picked on March 19 at $ 91.01
Change since picked: + 2.75
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 35 million

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Allegheny Tech. - ATI - cls: 109.91 chg: -1.04 stop: 105.75

Warning! ATI produced an intraday breakout over resistance at the $110 level. Shares hit an intraday high of $110.83 before pulling back. The stock did close up 0.95% but the failure to close over resistance at $110 makes us cautious. Our suggested entry point to buy calls was at $110.26 so the play is now open but we would not suggest new positions with shares under $110. Our target is the $117.00-120.00 range. FYI: The P&F chart points to a $123 target. We do not want to hold over the late April earnings report.

Picked on April 03 at $110.26
Change since picked: - 0.35
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Celgene - CELG - close: 55.63 chg: +1.83 stop: 51.49 *new*

Tuesday turned out to be a strong day for biotechs and especially for CELG. The BTK biotech index rose 1.19%. Shares of CELG surged 3.4% on above average volume to breakout over the $55 level and its 100-dma. We are adjusting our stop loss to $51.49. Our target is the $57.50-60.00 range. We do not want to hold over the late April earnings report.

Picked on March 19 at $ 52.65
Change since picked: + 2.98
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 3.5 million

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ConocoPhillips - COP - cls: 67.84 chg: -0.35 stop: 64.85

Encouraging comments from Iran suggested that there might be a peaceful resolution of the British soldier hostage crisis. This send crude oil sliding 2% to under $65 a barrel. Oil stocks, for the most part, managed to rally with the markets anyway. Shares of COP continued to under perform and lost 0.5%. We are not suggesting new positions in COP at this time but nimble traders may want to watch for a bounce near its 50-dma around $66.75. We're aiming for the $74.00-75.00 range. We do not want to hold over the late April earnings report.

Picked on March 20 at $ 66.31
Change since picked: + 1.53
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 12.1 million

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Holly Corp. - HOC - cls: 58.99 chg: -0.01 stop: 56.45

HOC continues to under perform its peers in the oil sector. The stock has been sliding for more than a week after hitting new all-time highs in late March. Shares bounced from the initial test of short-term support near $58.00 today. This might be a new entry point but we'd want to watch for some confirmation with a move over $59.50 or even the $60.00 mark before initiating positions. More aggressive traders may want to aim for the $65 zone. We're aiming for the $62.00-62.50 range.

Picked on March 14 at $ 57.87
Change since picked: + 1.12
Earnings Date 05/14/07 (unconfirmed)
Average Daily Volume = 651 thousand

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Lockheed Martin - LMT - cls: 97.28 chg: +0.35 stop: 97.49

There is still no change from our previous comments on LMT. Currently, we are still on the sidelines waiting for a breakout over resistance near $100. Our suggested trigger to buy calls is at $100.25. However, we're going to keep a close eye on the $95 level and if LMT produces a convincing bounce near $95 we might suggest aggressive positions there (obviously with an adjusted stop loss). Our target is the $104.85-105.00 range. More aggressive traders may want to aim higher since the P&F chart aims at a $128 target. 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 04/26/07 (unconfirmed)
Average Daily Volume = 1.8 million

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Sunoco - SUN - close: 71.06 chg: -0.45 stop: 65.65

Oil refiner SUN held up relatively well considering the 2% pull back in crude oil today. The stock bounced around the $70-72 trading range that has afflicted the stock for the past several days. Our target is the $74.00-75.00 range.

Picked on March 20 at $ 68.15
Change since picked: + 2.91
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 2.8 million
 

Put Updates

F5 Networks - FFIV - cls: 67.22 chg: +2.33 stop: 71.01

A widespread market rally, including strength in tech, helped fuel an oversold bounce (maybe some short covering) in FFIV. The stock surged toward $68 at the open but struggled to breakout past the level all day long. Boosting the stock this morning was an analyst upgrade with a $76 price target. The larger trend remains bearish so we would wait and watch for a failed rally under the $70 level as a new entry point to buy puts. Our target is the $60.50-60.00 range. We do not want to hold over the late April earnings report. FYI: FFIV can be volatile so expect a lot of up and downs in the option prices.

Picked on April 01 at $ 66.68
Change since picked: + 0.54
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 1.0 million

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MDC Holdings - MDC - cls: 48.98 chg: +0.95 stop: 50.05

A better than expecting pending home sales report from the National Association of Realtors fueled a bounce in the homebuilders and temporarily eased investor concerns over the housing market. The DJUSHB home construction index rose 1.48%. Shares of MDC rallied to an intraday high of $49.74 before closing with a 1.9% gain. Aggressive traders may want to buy puts on a failed rally from here. We are sticking to our plan with a suggested trigger to buy puts at $46.95. If triggered our target is the $41.00-40.00 range. Prepare for some support near $45.00. The P&F chart looks very bearish with a $35 target. We do not want to hold over the mid-April earnings report so our target might be a little optimistic. Then again, stocks tend to drop faster than they rise.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/19/07 (unconfirmed)
Average Daily Volume = 870 thousand
 

Strangle Updates

None
 

Dropped Calls

Bunge Ltd. - BG - cls: 81.40 chg: -2.29 stop: 77.95

We have been stopped out of BG at $77.95. The stock had displayed a lot of relative strength over the past couple of weeks. Shares were up almost $3 from our picked price as of yesterday. Unfortunately, this is earnings warning season and BG warned for the first quarter before the opening bell. The stock gapped open lower at $78.00 and dipped to $73.39 before bouncing back.

Picked on March 26 at $ 80.75
Change since picked: + 0.65
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 990 thousand

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Chaparral Steel - CHAP - cls: 59.57 chg: +0.70 stop: 54.95

Target achieved. As expected the rally in CHAP continued. Shares hit an intraday high of $60.11. Our target was the $59.50-60.00 range. If you chose not to exit with us we suggest caution. CHAP does look short-term overbought.

Picked on March 25 at $ 55.73
Change since picked: + 3.84
Earnings Date 03/20/07 (confirmed)
Average Daily Volume = 627 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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