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Call Updates

Apple Inc. - AAPL - cls: 103.92 chg: +3.11 stop: 99.85

We didn't have to wait very long for AAPL to breakout for us. Shares took off early this morning and quickly hit a new high above the April peak. Our suggested trigger to buy calls was at $102.55. AAPL eventually closed up 3% on above average volume, which is bullish. Fueling the move was some positive chatter about an iPod upgrade and the upcoming launch of the iPhone. Now that the play is open our target is the $108.00-110.00 range. FYI: The Point & Figure chart forecasts a $123 target.

Picked on May 07 at $102.55
Change since picked: + 1.37
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 23.9 million

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Abbott Labs - ABT - cls: 58.95 chg: +0.65 stop: 55.69

Shares of ABT were upgraded to an "over weight" this morning, which sparked the surge higher at the opening bell on Monday. Volume is still under the daily average but it's improving. The stock is nearing potential resistance at the April highs. If you don't feel like chasing it you could wait for a potential pull back. The $58.00 level should be short-term support so consider watching for a dip near $58.00-57.50. Our target is the $62.00-62.50 range. FYI: The P&F chart points to a $65 target.

Picked on May 06 at $ 58.30
Change since picked: + 0.65
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 7.1 million

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Bear Stearns - BSC - cls: 155.85 chg: -1.92 stop: 154.75

In spite of more merger news today the broker-dealers failed to rally. Shares of BSC couldn't make it past the simple 100-dma. We are waiting for a breakout over $160. We're suggesting a trigger to buy calls at $160.25. If triggered then our target is the $169.75-172.50 range. The P&F chart is hitting some resistance but shows a triple-top breakout buy signal with a $184 target. Chart readers will note that BSC appears to have an inverse (bullish) head-and-shoulders pattern that points to a $170 target.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 2.7 million

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Ctrip.com - CTRP - cls: 71.10 chg: -0.68 stop: 67.45

Internet-related stocks under performed on Monday. Shares of CTRP slipped almost 1% on very light volume. Watch for a dip or a bounce near $70.00 as a new entry point. More conservative traders may want to tighten their stops toward $69.50. Our short-term target is the stock's highs in the $74.50-75.00 range. The Point & Figure chart forecasts a $93 target. We do not want to hold over the May 16th earnings report. FYI: Readers should also note that EXPE is due to report earnings on May 8th and that news could impact shares of CTRP.

Picked on April 29 at $ 70.63
Change since picked: + 0.47
Earnings Date 05/16/07 (confirmed)
Average Daily Volume = 389 thousand

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General Dynamics - GD - cls: 81.41 chg: +1.72 stop: 77.75

Some M&A activity in the defense sector fueled another new high for the DFI index. Shares of GD showed relative strength with a 2.1% gain and a bullish breakout over resistance near $81.00. This looks like a new entry point to buy calls. However, if you're opening positions now considering aiming higher. We're adjusting our strategy so that we have two targets. Our conservative target will be the $84.75-85.00 range. Our aggressive target will be the $89.00-90.00 range. The P&F chart has produced a triple-top breakout buy signal with a $96 target.

Picked on April 29 at $ 80.27
Change since picked: + 1.14
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.4 million

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Lehman Brothers - LEH - cls: 76.85 chg: -0.45 stop: 74.85

LEH suffered a little bit of profit taking on Monday. Actually the move looks like a possible short-term top. We remain bullish here but it might pay off to wait for a dip near the $75.50-75.00 range. The P&F chart is bullish with a $100 target but it's worth noting that the P&F chart does have potential resistance near $79. We see potential resistance near $80 on the daily chart. Our target is the $84.00-85.00 range.

Picked on May 06 at $ 77.30
Change since picked: - 0.45
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 5.9 million

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Marathon Oil - MRO - cls: 104.40 chg: -0.01 stop: 99.75

We do not see any changes from our weekend comments. MRO is a tempting bullish candidate thanks to its relative strength. The stock looks like it wants to breakout higher after a six-week sideways consolidation pattern. We're suggesting a trigger to buy calls at $105.55, which is just above Friday's intraday peak. If triggered at $105.55 we'll have two targets. Our conservative target is the $109.85-110.00 range. Our aggressive target will be the $114.00-115.00 range. FYI: The P&F chart points to $110 and MRO has a 2-for-1 split coming up on June 19th.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/31/07 (unconfirmed)
Average Daily Volume = 3.8 million

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Research In Motion - RIMM - cls: 139.83 chg: +1.81 stop: 134.50

Our new call play in RIMM has been opened. The stock broke out over resistance at $140.00 on an intraday basis. The high was $140.70. Our suggested trigger to buy calls was at $140.25. Now that the play is open our target is the $149.00-150.00 range. Should the stock dip from here watch for a bounce in the $137-138 range as a new entry point otherwise wait for a new relative high (over $140.70) before initiating positions. Readers should note that RIMM will probably encounter some resistance near the top of its gap down around the $145 region. FYI: The P&F chart is bearish and points to a $110 target.

Picked on May 07 at $140.25
Change since picked: - 0.42
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = million

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WATSCO - WSO - cls: 55.75 change: +0.02 stop: 53.95

We don't see any changes from our weekend comments. WSO continues to look bullish and traders bought the dip midday. The P&F chart looks very positive with a bullish triangle breakout pattern and a $68 target. We're suggesting calls with WSO above $55. Our target is the $59.50-60.00 range.

Picked on May 06 at $ 55.73
Change since picked: + 0.02
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 382 thousand
 

Put Updates

Equinix - EQIX - cls: 81.61 chg: -1.22 stop: 86.05

EQIX continues to under perform. The stock lost 1.4% on Monday. We do not see any changes from our weekend comments. More conservative traders may want to wait for a breakdown under $80.00 before initiating positions. Our target is the $75.25-75.00 range. Aggressive traders may want to aim closer to $70 but be aware that the 200-dma might offer new technical support. FYI: The P&F chart points to a $70 target.

Picked on May 06 at $ 82.83
Change since picked: - 1.22
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 515 thousand

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Essex Property - ESS - cls: 127.14 chg: -0.16 stop: 130.05

ESS is still drifting lower but we remain on the sidelines. We want to catch any further breakdown under support at the $125.00 level. The March 2007 low was $124.78. We are suggesting a trigger to buy puts at $124.65. There is potential support near $120 but if triggered our target is the $115.50-115.00 range. FYI: The P&F chart points to a $100 target.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Itron - ITRI - cls: 66.33 change: -0.12 stop: 70.01

ITRI under performed the market again but shares are clutching on to technical support at the 50-dma. The trend continues to look bearish and the stock looks poised to break down under technical support at the 50-dma. We are suggesting a trigger to buy puts at $65.85, under the 50-dma and under short-term support near $66.00. If triggered at $65.85 our target is the $60.50-60.00 range. More conservative traders may want to aim for the rising 100-dma (currently near 60.73) since the 100-dma could be support.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 547 thousand

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AvalonBay - AVB - cls: 120.02 chg: +0.99 stop: 125.26

AVB experienced a minor oversold bounce on Monday. Shares rose 0.8% and managed to close over the $120 level. We're not suggesting new positions at this time. Our target is the $112.50-110.00 range. The P&F chart points to a $110 target. More conservative traders might want to think about taking some money off the table here.

Picked on April 30 at $124.45
Change since picked: - 4.43
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 770 thousand

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Las Vegas - LVS - cls: 80.24 change: -1.57 stop: 85.01

Warning! LVS continued to sink on Monday and slipped to $79.35 intraday. We had a trigger to buy puts on a breakdown under $80.00 support at $79.85. The play is now open. We have to issue a warning because fellow casino operator WYNN just reported earnings after the closing bell and beat the estimates. Shares of WYNN will likely gap open higher tomorrow and this will be a bullish influence on shares of LVS. We would watch for a failed rally under $84.00 or a new low in LVS before considering new positions. Our target is the $71.50-70.00 range. Currently the P&F chart sports a triple-bottom breakdown sell signal with a $75 target.

Picked on May 07 at $ 79.85
Change since picked: + 0.39
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 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.)

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Lockheed Martin - LMT - cls: 98.07 change: +1.43 stop: n/a

Today's bullish breakout in LMT, above resistance near $97 and its 50-dma, is good news for this strangle play. We needed LMT to move and do it quick before May options expire. 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: + 2.67
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Calls

Holly Corp. - HOC - cls: 63.90 chg: +0.78 stop: 61.95

Crude oil slipped again but HOC displayed relative strength with a 1.2% gain on improving volume. The stock is still struggling under the $65.00 level but looks poised to breakout. Unfortunately, we're out of time. It was our plan to exit today at the closing bell to avoid holding over HOC's earnings report due out tomorrow morning.

Picked on April 22 at $ 62.30
Change since picked: + 1.60
Earnings Date 05/08/07 (confirmed)
Average Daily Volume = 669 thousand

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Wynn Resorts - WYNN - cls: 101.85 chg: -0.67 stop: 100.89

We have been stopped out of WYNN at $100.89. It can be pretty tough to swallow a loss like this when shares came within two cents of our target on May 2nd (the high was $107.98). We were planning to exit anyway to avoid holding over tonight's earnings report. This loss is especially sour now that we see that WYNN beat estimates by 13 cents and is trading between $104.00 and $108.70 in after hours markets.

Picked on April 15 at $102.44
Change since picked: - 0.59
Earnings Date 05/07/07 (confirmed)
Average Daily Volume = 1.4 million
 

Dropped Puts

Lockheed Martin - LMT - cls: 98.07 chg: +1.43 stop: 97.51

Some merger news in the defense sector fueled another all-time high for the DFI defense index. Shares of LMT finally gave in and joined the crowd by moving higher. We would have been stopped out at $97.51. It's worth noting that this bullish breakout looks like a new entry point to buy calls but watch for resistance near $100.

Picked on April 24 at $ 94.82
Change since picked: + 3.25
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 1.7 million
 

Dropped Strangles

None
 

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