Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Advance Auto Parts - AAP - cls: 42.26 chg: +1.20 stop: 39.90*new*

Shares of AAP were upgraded this morning. The stock gapped open higher at $43.00 and spiked to $43.62 before paring its gains and trading sideways for the rest of the session. AAP closed up 2.9% at the end of the day. We are not suggesting new positions at this time. Please note that we're raising the stop loss to $39.90. 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 11 at $ 40.05
Change since picked: + 2.21
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume = 854 thousand

---

Abercrombie - ANF - cls: 82.90 chg: +0.37 stop: 79.85

The gains in ANF were conservative compared to the major averages and the RLX retail index. Shares rose 0.4% as they continued to bounce from its rising 10-dma. We remain bullish but we're a little surprised the stock didn't show more relative strength tonight. If ANF can trade over $84.00 it should reverse the Point & Figure chart into a new buy signal. Our target is the $89.00-90.00 range. We do not want to hold over the late May earnings.

Picked on April 22 at $ 83.51
Change since picked: - 0.61
Earnings Date 05/23/07 (unconfirmed)
Average Daily Volume = 1.9 million

---

Cigna - CI - close: 153.42 chg: +0.66 stop: 147.75

Investors were unhappy with earnings results from Wellpoint and the news weighed on the health insurance stocks this morning. Shares of CI gapped down but bulls bought the dip at $149.70 this morning. Later this afternoon the stock spiked higher after CI announced a 3-for-1 stock split. Shareholders on record as of May 21st will receive two additional shares payable on June 4th. CI also announced a 20% increase in its cash dividend. We are not suggesting new positions with our target in the $154.50-155.00 range. However, it looks like CI is poised to breakout from its current trading range. Nimble traders could buy today's bounce with a stop loss under today's low or wait for a move over $153.75 as a new entry point. If you do open new positions we'd probably aim for the $159-160 range. FYI: More conservative traders may want to lock in a profit right now!

Picked on April 05 at $147.75
Change since picked: + 5.67
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 910 thousand

---

FedEx - FDX - cls: 108.12 change: +0.97 stop: 106.85

Rival UPS reported earnings today. The results were inline and guidance wasn't very newsworthy. Yet traders bought UPS and pushed shares to a 1.48% gain. UPS now looks poised to breakout over its 200-dma. Meanwhile FDX managed a bounce (+0.9%) but continues to look bearish under resistance at $110 and its own 200-dma. We're waiting for a breakout. Our suggested trigger to buy calls is at $110.55. Our target is the $116.00-117.50 range. More conservative traders may want to exit early near $115. FYI: The P&F chart is still bearish from the March sell-off.

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/20/07 (unconfirmed)
Average Daily Volume = 1.8 million

---

Holly Corp. - HOC - cls: 64.30 chg: +2.02 stop: 59.49

Crude oil bounced back from yesterday's losses after the latest inventory numbers showed another decline in gasoline supplies. This fueled a rally in energy stocks and HOC rose 3.2% to a new all-time high. Our target is the $67.50-70.00 range. The P&F chart is bullish with a $74 target. We do not want to hold over the May 8th earnings report.

Picked on April 22 at $ 62.30
Change since picked: + 2.00
Earnings Date 05/08/07 (confirmed)
Average Daily Volume = 669 thousand

---

Joy Global - JOYG - cls: 51.28 chg: +1.34 stop: 46.48*new*

JOYG continues to rise. The market's widespread rally helped JOYG post a 2.6% gain. The stock hit our conservative target in the $49.85-50.00 range earlier this week. We are not suggesting new positions. Our aggressive target is the $52.25-55.00 range. Please note that we're raising the stop loss to $46.48.

Picked on April 12 at $ 46.48
Change since picked: + 4.74
Earnings Date 05/30/07 (unconfirmed)
Average Daily Volume = 2.5 million

---

McKesson Corp. - MCK - cls: 60.63 chg: -0.14 stop: 57.99

Uh-oh! We're starting to worry about MCK. The market's produce a very widespread rally and MCK fails to participate. This sort of relative weakness makes us nervous. More conservative traders may want to use a tighter stop loss. Our target is the $64.00-65.00 range. FYI: The Point & Figure chart points to a $73 target.

Picked on April 19 at $ 60.15
Change since picked: + 0.48
Earnings Date 05/07/07 (unconfirmed)
Average Daily Volume = 1.7 million

---

Nucor - NUE - cls: 66.86 change: +0.15 stop: 63.99

NUE continues to show relative weakness. More conservative traders may want to cut their losses right now and run. We are tempted to raise the stop loss toward $66 but we'll keep it at $63.99 for now. Today's move looks like a bearish failed rally under $68.00. We would not consider new bullish positions until we see a new rally past $68.50. The P&F chart is bullish with an $83 target. FYI: We would expect a little bit of resistance near $70.

Picked on April 23 at $ 68.51
Change since picked: - 1.65
Earnings Date 04/19/07 (confirmed)
Average Daily Volume = 3.6 million

---

Wynn Resorts - WYNN - cls: 105.47 chg: +2.66 stop: 99.95*new*

Bulls bought the dip at the 10-dma again and WYNN broke out past short-term resistance near $104. The stock climbed 2.5% by the closing bell. Please note that we are adjusting the stop loss to $99.95. We plan to exit ahead of the early May earnings report. Our target is the $108.00-110.00 range. More conservative traders may want to exit early near the late February highs around $106.60. FYI: WYNN's P&F chart points to a $120 target.

Picked on April 15 at $102.44
Change since picked: + 3.03
Earnings Date 05/05/07 (unconfirmed)
Average Daily Volume = 1.4 million
 

Put Updates

Lockheed Martin - LMT - cls: 95.50 chg: +0.68 stop: 98.35

Bears had a really hard time building on LMT's reversal yesterday with the market in rally mode today. LMT bounced from the $94.00 level but struggled to rise past $96.00, which is a good sign. We remain bearish on LMT but we would urge extra caution about opening bearish positions with the market looking so strong. Our short-term target is the $90.50-90.00 range where we expect LMT to find support near $90 and its rising 200-dma. We have a wide stop due to LMT's volatility. More conservative traders may want to put their stop near $96.65-96.50.

Picked on April 24 at $ 94.82
Change since picked: + 0.68
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.7 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

---

Chicago Merc.Exc. - CME - cls: 530.70 chg: - 0.60 stop: n/a

CME is still showing relative weakness but the stock managed a bounce from its lows thanks to the market's broad-based rally. We are not suggesting new strangle positions at this time. The next level of support looks like $525 and then the 200-dma near $515. The suggested options we had listed were the May $580 call (CNM-EV) and the May $530 put (CNM-QF). Our estimated cost was $13.00. We want to see if either option rises to $18.50 or more.

Picked on April 22 at $555.89
Change since picked: -25.19
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 693 thousand

---

Lockheed Martin - LMT - cls: 95.50 change: +0.68 stop: n/a

LMT bounced back toward the $95 level but it looks like a temporary reprieve. We're not suggesting new strangle plays at this time. The suggested options we had listed were the May $100 calls (LMT-ET) and the May $90 puts (LMT-QR). Our estimated cost was $1.50. We want to sell if either option rises to $2.25 or more.

Picked on April 22 at $ 95.40
Change since picked: + 0.10
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Calls

Apple Inc. - AAPL - cls: 95.34 chg: +2.10 stop: 91.01

AAPL rose 2.2% ahead of its earnings report today. It was our plan to exit at the closing bell to avoid holding over the uncertainty of earnings. We suggested that more aggressive traders wanting to hold AAPL up to its launch of the iPhone may want to hold their positions. It looks like those willing to take the risk were rewarded (this time). AAPL beat estimates by 23 cents. The stock was trading over $103 in after hours tonight.

Picked on March 19 at $ 91.01
Change since picked: + 4.33
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 35 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives