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Call Updates

Avery Dennison - AVY - cls: 67.32 chg: +0.02 stop: 64.90

The two-month trend in AVY is still bullish. Most of the daily and weekly technical indicators are still bullish. However, momentum is slowing and that's weighing on the technicals. Last week's breakout over the $67.00 level is a positive for the bulls and looks like another entry point for calls. Yet traders may want to take a cautious approach to new positions. If you read the market wrap for this weekend then you know we are not expecting much from the markets in the next couple of weeks. Readers may want to tighten their stops. AVY's Point & Figure chart recently produced a new buy signal with an $80 target. Our target is the $69.75-70.00 range. We do not want to hold over the late July earnings report.

Suggested Options:
We are suggesting caution when it comes to new plays on AVY. August calls would work but remember our plan to exit before the late July earnings.

Picked on June 11 at $ 66.05
Change since picked: + 1.27
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

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BP Plc. - BP - close: 73.50 change: +0.58 stop: 68.75

Shares of BP were upgraded to a "buy" on Friday. This accounted for the stock gapping up at the open. Unfortunately, BP was unable to build on the opening move and shares traded sideways for the rest of the session. Overall the trend is still very bullish but BP looks short-term overbought and due for a correction. A dip back toward $72 and its rising 10-dma would be normal. We're not suggesting new positions at this time. The P&F chart points to a $90 target. Our target is the $74.85-75.00 range. More aggressive traders may want to aim higher.

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

Picked on June 22 at $ 70.25
Change since picked: + 3.25
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 3.5 million

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Chevron Corp. - CVX - close: 87.68 chg: +1.11 stop: 81.59*new*

A strong week for crude oil futures lifted shares of CVX to new all-time highs. Shares posted a 1.2% gain on above average volume Friday. More conservative traders may want to lock in a gain now. We're inching up our stop loss again to $81.59, just under the 50-dma. We're not suggesting new positions at this time but a dip or a bounce near $85 or the 10-dma might be a new entry point for bullish positions. CVX's Point & Figure chart is positive with a bullish catapult breakout buy signal and a $120 price target. Our target is the $89.00-90.00 range.

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

Picked on June 18 at $ 83.75
Change since picked: + 3.93
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 9.1 million

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Deere Co - DE - close: 123.71 change: +0.65 stop: 116.90

Unfortunately, we have little new to report on for DE. Shares are still well situated in their long-term rising trend. The stock did post gains this past week but they were not very inspiring and DE appears to still have resistance in the $125 region. Odds are good that the markets might see some profit taking so look for DE to dip back into the $122.00-120.00 range, which is where we'd look for a new entry point. More conservative traders may want to raise their stop loss toward the June 27th low or the rising 50-dma near $118.30. A move over $125.00 or a new relative high over $125.65 could also be used as a new entry point. We have two targets. Our first target is the $129.50-130.00 range. Our second, more aggressive target is the $134.00-135.00 range.

Suggested Options:
We're suggesting the August calls.

BUY CALL AUG 120 DE-HD open interest=327 current ask $7.80
BUY CALL AUG 125 DE-HE open interest=470 current ask $5.00
BUY CALL AUG 130 DE-HF open interest=562 current ask $2.90

Picked on June 20 at $123.55
Change since picked: + 0.16
Earnings Date 08/15/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Russell 2000 iShares - IWM - cls: 84.80 chg: +0.33 stop: 81.35

The IWM has rallied back toward resistance near $85.00. The short-term trend looks bullish but we would not be buying new positions right under resistance. Our target is the $86.50-87.50 range.

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

Picked on June 24 at $ 82.85
Change since picked: + 1.95
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 71.6 million

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Manpower - MAN - cls: 94.26 change: +0.38 stop: 89.90

MAN is still trying to breakout higher. The stock pierced overhead resistance at the $95.00 level on Friday but the move reversed and shares failed to close over this level. The path of least resistance appears to be up for MAN but we remain wary. Shares have been trading sideways for over a month now, which would kill any option values. We are repeating our previous comments. More conservative traders may want to tighten their stops toward $91.00. Meanwhile readers may want to wait for a breakout over $95 before considering new positions. The P&F chart has a triple-top breakout buy signal with a $110 target. Currently our target is the $99.50-100.00 range.

Suggested Options:
We would suggest the August calls but plan to exit ahead of the late July earnings report.

Picked on June 20 at $ 94.15
Change since picked: + 0.11
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 829 thousand

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Pacific Ethanol - PEIX - cls: 14.43 chg: -0.12 stop: 11.90

We are repeating our previous comments. More conservative traders may want to lock in a gain now following PEIX's big rally last week. Shares hit technical resistance at the 100-dma and look poised for some profit taking back toward $14.00 and maybe back down to the 50-dma. We're still bullish on PEIX given what appears to be a new bottom and a bullish reversal but we're not suggesting new positions at this time. We are adjusting our target to the $15.40-15.60 range to account for potential resistance at the descending 200-dma. FYI: We cannot find a future earnings date for PEIX but suspect it will be in August or September.

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

Picked on June 24 at $ 12.83
Change since picked: + 1.60
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 892 thousand

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Penn National Gaming - PENN - cls: 60.82 chg: +0.46 stop: n/a

A quick history on the PENN play - On June 15th it is announced that FIG and Centerbridge partners will pay $8.9 billion in cash to take PENN private. The deal values PENN at $67 a share. PENN gets 45 days to solicit a better offer and more than one analyst believes additional suitors will show up and push the buyout price closer to $80 a share. We are suggesting high-risk, speculative call positions on the gamble that a new suitor does show up and offer more. Thus far there hasn't been any news and PENN has less than 30 days to find another bidder. Shares of PENN hit some profit taking but found support near $60.00.

Suggested Options:
The July calls, which have two weeks left until expiration, show a lot of open interest. The July 65 calls (UQN-GM) are going for about 20 cents each. Meanwhile the better play is probably the August $65 calls (UQN-HM) which are going for 25 cents a piece.

Picked on June 17 at $ 62.12
Change since picked: - 1.30
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 1.0 million

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SanDisk - SNDK - cls: 49.20 change: +1.11 stop: 44.85

Positive analyst comments about the pricing environment for the memory market lifted SNDK to a 2.3% rally. The stock looks poised to challenge round-number resistance near $50.00 soon. SNDK has already hit our conservative target in the $49.50-50.00 range. We're currently aiming for our aggressive target in the $52.50-55.00 range. We don't want to hold over the mid July earnings report, which doesn't give us a lot of time so you may want to avoid launching new positions.

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

Picked on June 17 at $ 46.40
Change since picked: + 2.80
Earnings Date 07/19/07 (unconfirmed)
Average Daily Volume = 7.6 million
 

Put Updates

Allegheny Tech - ATI - cls: 107.72 chg: -1.02 stop: 110.15

ATI is slowly fading lower from its recent failed rally under the $110 level. Friday's relative weakness looks like another entry point to buy puts. However, readers may want to wait for a new decline under the 10-dma near $106.25 before initiating new positions. The stock has already hit our conservative target in the $100.50-100.00 range. We are adjusting our aggressive target to $97.00-96.00 to account for the rising 200-dma, which is likely to be support.

Suggested Options:
If you're looking for new positions we'd suggest the August puts. FYI: Double check your option symbols. The CBOE is listing the Aug. 110 put as -TX but it should be -TB.

BUY PUT AUG 110 ATI-TX open interest=271 current ask $6.70
BUY PUT AUG 105 ATI-TA open interest=487 current ask $4.20
BUY PUT AUG 100 ATI-TT open interest=320 current ask $2.45

Picked on June 12 at $106.70
Change since picked: - 2.04
Earnings Date 07/25/07 (unconfirmed)
Average Daily Volume = 2.1 million

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Gilead Sciences - GILD - cls: 39.12 chg: +0.14 stop: 40.15 *new*

GILD is still trading under its bearish trend of lower highs. However, downward momentum has slowed significantly. We're not suggesting new positions. More conservative traders may want to exit early. Studying the intraday chart we noticed a lot of volume on the late Friday afternoon rebound and shares of GILD continued to climb in after hours (up toward $39.70). We are adjusting our stop loss down to $40.15. More aggressive traders may want to leave their stop above the 50-dma near $40.60. Our post-split target is $37.62-36.25.

Suggested Options:
We're not suggesting new positions.

Picked on June 07 at $ 39.95 *split adjusted
Change since picked: - 0.83
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

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Mettler Toledo - MTD - cls: 97.71 chg: +1.77 stop: 99.11

Uh-oh! The bears may be in trouble with MTD. The stock spiked higher on Friday, rising 1.8% and challenging resistance near its 50-dma. The MACD indicator on the daily chart has produced a new buy signal on Friday. The move over short-term resistance near $97.00 is also bad news for the bears. Resistance at the 50-dma is holding for now but more conservative traders may want to cut their losses. We're going to stick it out and re-evaluate after Monday's session.

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

Picked on June 19 at $ 96.75
Change since picked: + 0.96
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 215 thousand

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QUALCOMM - QCOM - cls: 43.58 change: +0.04 stop: 44.05

Thus far resistance at the $44.00 level is holding for QCOM but the stock has also developed a bullish trend of higher lows. We are not suggesting new put positions at this time and we repeat our previous suggestion that more conservative traders may want to exit early. Investors are ignoring the negative news regarding QCOM, its losing battle in the patent infringement case with BRCM, and the ITC two-year ban on importing new phones with QCOM's latest chips.

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

Picked on June 10 at $ 41.87
Change since picked: + 1.71
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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