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Call Updates

Baker Hughes - BHI - cls: 83.02 change: +0.19 stop: 79.95

Oil stocks participated in the market-wide bounce on Friday even though crude oil futures plunged over 3%. Traders bought the dip in BHI at $81.81. We were expecting a steeper decline into the $81-80 range. While we are encouraged by the bounce we're concerned that's all it is - a bounce. The bullish breakout over resistance near $84.00 last week has reversed. The P&F chart probably says it best by calling it a "bull trap". We remain fundamentally bullish on the oil stocks but we're wary of new bullish positions in BHI under $84.00. More aggressive traders may want to consider buying a bounce from here. We are suggesting readers wait for a new rise past $84.00. Furthermore we are suggesting that readers consider a tighter stop loss. Currently our target for BHI is the $89.00-90.00 range.

Suggested Options:
If BHI provides a new entry point we would suggest the July calls.

Picked on June 04 at $ 84.26
Change since picked: - 1.24
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 4.3 million

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Global SantaFe - GSF - cls: 67.93 chg: -0.61 stop: 65.90

While most of the market bounced on Friday shares of GSF continued to sink. The stock lost 0.88% but did manage to rebound from its lows around $66.65. At this point we would wait for signs of strength in GSF before considering new positions. A rally past $69.00 or maybe a new high over $70.80 might be used as new entry points for bullish positions. More conservative traders could place their stops under Friday's low.

Suggested Options:
We're not suggesting new positions in GSF at this time.

Picked on June 03 at $ 68.86
Change since picked: - 0.93
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 4.8 million

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Vangard Emergy Mkts ETF -VWO- cls: 87.54 chg: +2.01 stop: 84.99

Friday's bounce in the VWO was impressive. The ETF rose 2.3% and closed near its highs for the session, which should be bullish for next week. If you think the VWO can breakout past the $90 level then this looks like a new entry point for bullish positions. We're not suggesting new plays at this time. Our target is the $89.85-90.00 range.

Suggested Options:
We're not suggesting new positions in VWO at this time.

Picked on May 16 at $ 86.15
Change since picked: + 1.39
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 416 thousand

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XTO Energy - XTO - cls: 60.52 chg: +1.02 stop: 56.74

XTO continues to show relative strength. The stock rose 1.7% and did so on big volume. After the closing bell on Friday Jim Cramer, host of Mad Money on CNBC, gave a long and enthusiastic endorsement of XTO as one of his favorite oil stocks to own, especially after the recent asset acquisition from Dominion. We wouldn't be surprised to see XTO shoot higher on Monday. Please note that we are adjusting our target from $62.50-65.00 to $64.75-67.50. More conservative traders may want to tighten their stops toward $58.00.

Suggested Options:
If you're interested in buying the bounce here we would suggest using the July or August calls.

Picked on May 27 at $ 57.63
Change since picked: + 2.89
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Anixter Intl. - AXE - cls: 69.06 chg: +0.36 stop: 71.55

The last few weeks has seen AXE create a bearish double-top pattern under resistance near $75.00. The recent sell-off broke support at the $70.00 mark and its rising 50-dma. AXE produced an oversold bounce on Friday but the rebound struggled under the $70 level. This looks like another entry point to buy puts. We are aiming for the $65.25-65.00 range. The P&F chart is bearish with a $63.00 target.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 70.00 AXE-SN open interest= 44 current ask $2.95
BUY PUT JUL 65.00 AXE-SM open interest= 18 current ask $1.10

Picked on June 07 at $ 68.99
Change since picked: + 0.07
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 520 thousand

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Gilead Sciences - GILD - cls: 79.00 chg: +0.42 stop: 82.55

GILD also participated in the market's widespread bounce on Friday. Yet the rebound couldn't make it past round-number resistance at $80.00. We would use this bounce as a new entry point to buy puts. If the stock continues to bounce then look for resistance at $80 and again at $81.00. A failed rally under either level could be used as a new entry point. Our target is the $75.25-72.50 range. FYI: The stock is set to split 2-for-1 on June 25th. The P&F chart shows a new quadruple bottom breakdown sell signal with a $71 target.

Suggested Options:
We are suggesting the July puts although August puts would also work.

BUY PUT AUG 80.00 GDQ-SP open interest=4904 current ask $3.50
BUY PUT AUG 75.00 GDQ-SO open interest=5850 current ask $1.55

Picked on June 07 at $ 79.90
Change since picked: - 0.90
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Vital Images - VTAL - cls: 26.20 chg: +0.18 stop: 29.05

VTAL hit another new relative low on Friday (25.73) before bouncing back. The rebound was pretty anemic and we remain bearish although we're not suggesting new positions. If the markets continue to bounce then we could see VTAL make a rally attempt toward the $28 level. More conservative traders may want to tighten their stops a bit. Our target is the $25.15-25.00 range.

Suggested Options:
We're not suggesting new positions at this time.

Picked on May 16 at $ 27.99
Change since picked: - 1.79
Earnings Date 04/26/07 (confirmed)
Average Daily Volume = 191 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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