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Call Updates

Vangard Emergy Mkts ETF -VWO- cls: 86.42 chg: +1.67 stop: 83.95*new*

The VWO rebounded sharply on Friday with a gap open higher at $85.77. Shares eventually closed up almost 2% and back above its simple 10-dma. The rebound was fueled by above average volume, which is usually a bullish sign. We were surprised by the influx of volume given the long, holiday weekend. The move on Friday could be used as a new entry point to buy calls. However, we are still very wary of the market in general and hesitate to suggest new bullish plays. We're adjusting our stop loss to $83.95. Our target is the $89.85-90.00 range.

Suggested Options:
We are not suggesting new call plays on VWO at this time.

Picked on May 16 at $ 86.15
Change since picked: + 0.27
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand
 

Put Updates

Essex Property - ESS - cls: 122.40 chg: +3.63 stop: 124.26

ESS has been showing a lot of volatility recently. We were not surprised by the recent oversold bounce earlier last week but Friday's bounce in ESS was a surprise. The REIT sector was rising on Friday thanks to rumors that Archstone (ASN) was the next takeover candidate in the group. Shares of ASN soared and even after paring its gains the stock closed up 8%. ESS followed the surge higher and shares of ESS rose 3% and on big volume, which is typically a warning signs for traders. We are not suggesting new put positions at this time. Our target is the $115.50-115.00 range. FYI: The P&F chart points to a $100 target.

Suggested Options:
We are not suggesting new put positions in ESS at this time.

Picked on May 16 at $124.65
Change since picked: - 2.25
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 281 million

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Las Vegas - LVS - cls: 76.58 change: -1.21 stop: 81.15 *new*

LVS continued to under perform on Friday. Shares hit a new relative low early Friday morning before traders started buying the dip. The dip on Friday was enough to "fill the gap" so the afternoon buying might just be speculation. Volume certainly came in strong for a pre-holiday weekend. Fueling some investor concern on Friday was news that the Chinese government might tighten their travel restrictions to the new gambling hotspot that has sprung up in Macau. We remain bearish on LVS but would probably expect another bounce on Tuesday given Friday's rebound near $75.00. We will adjust our stop loss to $81.15. Our target is the $71.50-70.00 range.

Suggested Options:
We are not suggesting new positions in LVS at this time.

Picked on May 07 at $ 79.85
Change since picked: - 3.27
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 2.1 million

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Vital Images - VTAL - cls: 27.95 chg: +0.47 stop: 30.05

Software stocks rebounded strongly on Friday and the GSO index rose 1.5%. This helped fuel a 1.7% bounce in VTAL although volume came in below average thanks to the upcoming holiday weekend. The intraday trading on Friday produced another failed rally at the 10-dma but the bounce doesn't look over yet. We remain bearish and would watch for another failed rally under $29.00 as a new entry point. More conservative traders may want to adjust their stop closer to the $29.00 level. Our target is the $25.15-25.00 range. The Point & Figure chart displays a descending triple-bottom breakdown pattern with a $23 target.

Suggested Options:
If VTAL provides another entry point for puts we would suggest the July puts.

Picked on May 16 at $ 27.99
Change since picked: - 0.04
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 thousand
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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