Advance Auto Parts - AAP - cls: 41.67 chg: -0.10 stop: 39.90
The markets were relatively flat on Friday and shares of AAP spent the session trading sideways. There was an intraday dip that was almost low enough to "fill the gap" from Wednesday morning. It looks close enough to us and we would expect AAP to bounce higher from here as long as the major averages don't see any serious losses on Monday. We are concerned that the market is short-term overbought so we're not suggesting new call positions on AAP at this time. We are adjusting our target to the $43.90-45.00 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
Abercrombie - ANF - cls: 83.39 chg: -0.97 stop: 79.85
The trend in ANF is still bullish and shares are trading near all-time highs. However, we have to comment on the short-term technical indicators, which suggest that momentum is stalling. ANF may be due for a correction. Thus far traders have been buying dips at the rising 10-dma, which is bullish. Technically we should be able to buy a bounce from here or on a dip (or bounce) near the 10-dma around $82.50. Yet our enthusiasm to buy new call positions is cooling with the major market indices looking overbought. Our target is the $89.00-90.00 range. We do not want to hold over the late May earnings. FYI: The Point & Figure chart suggests a $109 price target.
BUY CALL JUN 80.00 ANF-FP open interest=111 current ask $6.10
Picked on April 22 at $ 83.51
Holly Corp. - HOC - cls: 64.15 chg: -0.15 stop: 59.49
Supply concerns, raised by the capture of terrorists planning to hit Saudi oil fields, sent crude oil higher on Friday. Yet the OIX Oil index and shares of HOC failed to post any gains on the strength in crude. The trend in HOC remains bullish and bulls did buy the dip intraday on Friday. This looks like another entry point to buy calls but if you are opening new positions now consider using a much tighter stop loss. 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.
BUY CALL JUN 60.00 HOC-FL open interest=2335 current ask $5.80
Picked on April 22 at $ 62.30
Wynn Resorts - WYNN - cls: 104.52 chg: -1.41 stop: 99.95
WYNN suffered some profit taking on Friday. The trend remains bullish and shares have pulled back toward short-term support at its rising 10-dma. A bounce from here could be used as a new entry point but if you did launch new plays we'd use a tighter stop loss and target near $110 or higher. Unfortunately we're running out of time so we are not suggesting new positions. WYNN is due to report earnings on or near May 5th. 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
Lockheed Martin - LMT - cls: 96.19 chg: +3.19 stop: 97.51
Warning - reversal alert on LMT. The company received some positive comments and a credit upgrade from Standard & Poor's on Friday. S&P raised their credit rating from BBB+ to A-. Shares of LMT reacted sharply and rose 3.4% on big volume to breakout back above $95.00 and its 10-dma. This looks like a big bullish reversal and more conservative traders may want to exit early immediately. We still see potential resistance near $97.50 and its 50-dma near $97.84. More aggressive traders may want to place there stop above the 50-dma. We are not suggesting new positions at this time.
Picked on April 24 at $ 94.82
(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.)
Lockheed Martin - LMT - cls: 96.69 change: +3.19 stop: n/a
This is a strangle play so we don't care what direction LMT as long as it moves enough to make one side of the strangle profitable. Friday's big reversal in LMT was a surprise and shares are now facing resistance in the $97.50-98.00 range. 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
FedEx - FDX - cls: 107.22 change: -1.05 stop: 106.85
We are giving up on FDX as a potential call play for now. The Dow Jones Transportation average is looking vulnerable after hitting new highs on Wednesday. Rising crude oil definitely impacts the sector. Shares of FDX are languishing under resistance and look poised to dip toward $105. It was our plan to buy calls on a breakout over $110 with a trigger at $110.55.
Picked on April xx at $ xx.xx <-- see TRIGGER