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Call Updates

Advance Auto Parts - AAP - cls: 39.79 chg: +0.31 stop: 37.95

AAP continued to show relative strength on Tuesday. The stock rose another 0.78% albeit on below average volume. We're still waiting for a breakout over resistance at the $40.00 mark. We are suggesting a trigger to buy calls on AAP at $40.05 to capture any breakout higher. If triggered our target is the $44.50-45.00 range. We do not want to hold over the mid-May earnings report. FYI: The P&F chart points to a $48 target.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume = 854 thousand

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Apple Inc. - AAPL - cls: 94.25 chg: +0.60 stop: 89.49

Bulls in AAPL might get a reprieve. After yesterday's short-term bearish reversal it looked like AAPL was headed lower toward $92 and probably the $90 level. Yet traders stepped in to buy the dip at $93.40 and AAPL was rebounding higher into the closing bell. Lack of follow through on yesterday's reversal is definitely good news. If you choose to open new bullish plays now we would use a much tighter stop loss. Our target is the $97.50-100.00 range. We do not want to hold positions over the April 25th earnings report and plan to exit ahead of the announcement. More aggressive traders wanting to ride any pre-launch excitement for Apple's iPhone may want to break this rule and hold positions for several more weeks.

Picked on March 19 at $ 91.01
Change since picked: + 3.24
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 35 million

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Allegheny Tech. - ATI - cls: 112.21 chg: -1.13 stop: 105.75

ATI suffered some mild profit taking after hitting new highs yesterday. Bulls jumped in to buy the dip near $111. We remain bullish and don't see any changes from our weekend comments. More conservative traders may want to use a tighter stop loss. 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: + 1.95
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Boston Properties - BXP - cls: 118.07 chg: -0.67 stop: 114.49

Negative comments from the homebuilders today sapped anything related to real estate. Shares of BXP slipped 0.5% and looks poised to breakdown under its 100-dma. Our plan is to wait for a breakout over resistance near $120.50. Our suggested trigger to open positions is $120.75. More conservative traders may want to put their trigger above the 50-dma near $121.26. If triggered at $120.75 our target is the $127.00-130.00 range. Technical traders will note that most of the indicators are turning positive and BXP appears to have produced a potential double-bottom, which is bullish, with the two March lows. We do not want to hold over the April 24th earnings report.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.3 million

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Caterpillar - CAT - cls: 66.95 chg: -0.39 stop: 65.45

We are still in a wait-and-see mode. CAT is fluttering around the $66-68 level. We're waiting for a breakout past $68.50. Our suggested trigger to buy calls is at $68.55. If triggered at $68.55 our target is the $73.00-74.00 range under the August 2006 highs. Traders should keep in mind that we do not want to hold over CAT's earnings report, which has recently been confirmed as April 20th. That gives us less than two full weeks to see the play triggered and run toward our target. It is possible but each passing day makes it less likely.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/20/07 (confirmed)
Average Daily Volume = 6.3 million

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Cigna - CI - close: 148.54 chg: +0.88 stop: 141.39

CI is still inching higher. Shares have displayed an interesting pattern the last few days with traders stepping in to buy early morning weakness. The stock is nearing potential round-number, psychological resistance at the $150 mark. Our target is the $154.50-155.00 range. We do expect some resistance near $150 but given the stock's momentum CI should be able to plow through it. We do not want to hold over the May 2nd earnings report.

Picked on April 05 at $147.75
Change since picked: + 0.79
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 910 thousand

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Core Labs - CLB - cls: 88.43 chg: +1.13 stop: 81.95

Oil stocks bounced on Tuesday thanks to a rebound in crude oil following yesterday's sell-off. CLB displayed relative strength with a 1.29% gain on strong volume today. We noticed that the recent rally has produced a new buy signal on the weekly chart's MACD indicator. The P&F chart is bullish with a $115 target. Currently we have two targets. Our conservative target is $92.00. Our aggressive target is the $97.50-100.00 range, which might be a too optimistic given our time frame. We do not want to hold over the late April earnings report.

Picked on April 08 at $ 87.25
Change since picked: + 1.18
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 275 thousand

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ConocoPhillips - COP - cls: 69.45 chg: +1.03 stop: 64.85

Positive analyst's comments, and raised price targets helped lift many of the oil stocks that were already rising thanks to a bounce in crude oil. COP was one such stock that received some positive analyst comments. Shares of COP rallied 1.5% but are now facing resistance at the $70.00 level. We're aiming for the $74.00-75.00 range in COP. We do not want to hold over the late April earnings report.

Picked on March 20 at $ 66.31
Change since picked: + 3.14
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 12.1 million

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Holly Corp. - HOC - cls: 62.40 chg: +1.20 stop: 57.87*new*

HOC hit our conservative target again. The stock rallied 1.9% and broke out past the $62.00 level, which was our conservative target. Currently our aggressive target is the $64.75-65.00 range. The Point & Figure chart is bullish with a $74 target. FYI: Please note that we're adjusting the stop loss to $57.87.

Picked on March 14 at $ 57.87
Change since picked: + 4.53
Earnings Date 05/07/07 (unconfirmed)
Average Daily Volume = 651 thousand

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Infosys - INFY - cls: 52.08 chg: -0.48 stop: 49.79

We have two days left for our aggressive call play on INFY. The company is due to report earnings on Friday, April 13th. We are planning to exit at the closing bell on Thursday, April 12th. We're not suggesting new positions at this time. Our target is the $54.75-55.00 range.

Picked on April 03 at $ 51.69
Change since picked: + 0.39
Earnings Date 04/13/07 (confirmed)
Average Daily Volume = 1.6 million

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Lockheed Martin - LMT - cls: 98.05 chg: +0.02 stop: 97.49

LMT continues to announce new defense deals but it's not moving the stock price. We're starting to run low on time as we wait for an entry. Currently we're waiting for a breakout over resistance near $100.00 with a suggested trigger to buy calls at $100.25. 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. FYI: Volume has been sliding the last few days and we would not be surprised to see some action in LMT soon. The question is which direction will it go?

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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Nucor - NUE - cls: 67.05 chg: -0.45 stop: 63.89

NUE did not see any follow through on its breakout to a new high yesterday. That's a warning sign for the bulls. The overall pattern is still bullish but shares might dip back toward $66.00-65.50 first. Wait and watch for a bounce as a new entry point. Our target is the $72.50-75.00 range. We would aim higher but we don't have much time. Traders will need to exit ahead of the April 19th earnings report. FYI: We do expect some resistance at $70. Don't be surprised to see NUE bounce around the $67.50-70.00 range for a couple of days.

Picked on April 09 at $ 67.55
Change since picked: - 0.50
Earnings Date 04/19/07 (confirmed)
Average Daily Volume = 3.8 million
 

Put Updates

F5 Networks - FFIV - cls: 67.63 chg: -0.01 stop: 71.01

Networking stocks were a mixed bunch today but the NWX index slipped 0.16%. Shares of FFIV didn't know which way to go and closed virtually unchanged. The larger pattern is bearish but short-term FFIV could still see a bounce. A failed rally under $69 or $70 could be used as a new bearish 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: + 0.95
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.0 million

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MDC Holdings - MDC - cls: 49.40 chg: -0.25 stop: 50.05

Rival homebuilder DHI doesn't announce earnings until later this month but the company did offer an announcement on sales. DHI said sales were down and that the normally strong spring selling season has failed to appear. This left the homebuilding sector flat to down. Shares of MDC produced a failed rally at the $50.00 level. Aggressive traders might want to use this as a new entry point for shorts. We are going to stick 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

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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