Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Avery Dennison - AVY - cls: 66.67 chg: 0.08 stop: 64.90

As expected AVY dipped toward the $66.00 level but bulls bought the dip twice - once at $66.15 and again near $66.28. It would be tempting to buy the afternoon bounce but we'd probably wait for a move over $67.00 before considering new positions. Our target is the $69.75-70.00 range. We do not want to hold over the late July earnings report.

Picked on June 11 at $ 66.05
Change since picked: 0.62
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 728 thousand

---

BP Plc. - BP - close: 74.00 change: 0.38 stop: 68.75

BP is still holding up and resisting any profit taking attempts. We don't see any changes from our previous comments. We've been warning readers to look for a dip toward the 10-dma or the $72 region. We're not suggesting new positions at this time. Readers may want to consider an early exit right now to lock in a gain. 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.

Picked on June 22 at $ 70.25
Change since picked: 3.75
Earnings Date 07/24/07 (unconfirmed)
Average Daily Volume = 3.5 million

---

Deere Co - DE - close: 125.21 change: 1.33 stop: 116.90

Positive analyst comments today helped the farm-equipment stocks. Shares of DE rose another 1% and back above the $125 mark. We remain bullish but this is a tough decision. You could buy calls now or wait for a potential dip back toward the $122-120 zone and try to enter there. 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.

Picked on June 20 at $123.55
Change since picked: 1.66
Earnings Date 08/15/07 (unconfirmed)
Average Daily Volume = 2.6 million

---

GulfMark - GMRK - cls: 54.97 change: 0.93 stop: 52.45

Good news! There was no follow through on yesterday's bearish reversal in GMRK. Traders bought the dip near $53.75 and the stock rebounded to post a 1.7% gain. This bounce can be used as a new bullish entry point to buy calls. Our target is the $59.50-60.00 range. This is somewhat aggressive because time is growing short. We don't want to hold over the late July earnings report.

Picked on July 09 at $ 55.05
Change since picked: - 0.08
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 284 thousand

---

Russell 2000 iShares - IWM - cls: 83.85 chg: 0.64 stop: 81.35

Bulls defeated the Russell 2000 near its rising 50-dma. This meant that the IWM bounced near $83.00. We're not suggesting new positions but this certainly looks like one. Our biggest concern is resistance in the $85 region. Our target is the $86.50-87.50 range.

Picked on June 24 at $ 82.85
Change since picked: 1.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 71.6 million

---

Joy Global - JOYG - cls: 62.77 chg: 1.52 stop: 57.99

JOYG has produced a bullish breakout and a new entry point. We were suggesting a trigger to buy calls at $62.05. The stock pushed through resistance at $62.00 and closed up 2.48% at a new high. Now that the play is open our target is the $68.00-70.00 range. Our time frame is six to eight weeks. The Point & Figure chart is forecasting an $81 target.

Picked on July 11 at $ 62.05
Change since picked: 0.72
Earnings Date 08/30/07 (unconfirmed)
Average Daily Volume = 1.9 million

---

Manpower - MAN - cls: 93.52 change: 1.22 stop: 89.90

MAN managed to bounce back from its lows near $91.55 today but we remain cautious. The stock is stuck in a sideways trading range, albeit one with a bullish pattern of higher lows and higher highs. Depending on your level of risk you could use a rise past $94.00, 94.50 or $95.00 as a new entry point for calls.

Picked on June 20 at $ 94.15
Change since picked: - 0.63
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 829 thousand

---

Pacific Ethanol - PEIX - cls: 14.56 chg: -0.04 stop: 11.90

PEIX under performed the markets today with a 0.27% loss. Volume came in pretty light so it's hard to put a lot of weight behind today's relative weakness. We're not suggesting new positions. More conservative traders may want to exit early to lock in a gain. Our target is the $15.40-15.60 range. FYI: We cannot find a future earnings date for PEIX but suspect it will be in August or September.

Picked on June 24 at $ 12.83
Change since picked: 1.73
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 892 thousand

---

Penn National Gaming - PENN - cls: 60.34 chg: -0.33 stop: n/a

There is no change from our previous comments on PENN. We are suggesting high-risk, speculative call positions on the gamble that a new suitor does show up and offer more than the current buy-out price. 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.

Picked on June 17 at $ 62.12
Change since picked: - 1.75
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 1.0 million

---

Toro Co. - TTC - cls: 60.84 change: 2.46 stop: 57.95

Shares of TTC produced a big bullish reversal today. The stock was upgraded to a "buy" this morning and that fueled a 4.2% rally on big volume. Shares broke out past resistance to hit new highs. We were suggesting a trigger to buy calls at $60.75 so the play is now open. Our target is the $64.95-65.00 range. More aggressive traders may want to aim higher. The P&F chart points to a $77 target.

Picked on July 11 at $ 60.75
Change since picked: 0.09
Earnings Date 08/23/07 (unconfirmed)
Average Daily Volume = 354 thousand
 

Put Updates

Gilead Sciences - GILD - cls: 39.72 chg: -0.14 stop: 40.15

We don't see any change from our previous comments. GILD is still trading sideways under the $40.00 level. Unfortunately, it seems like GILD is poised to move higher. At this point we would strongly consider an early exit to cut your losses now.

Picked on June 07 at $ 39.95 *split adjusted
Change since picked: - 0.23
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 4.1 million

---

Goldman Sachs - GS - cls: 216.72 chg: -0.36 stop: 225.81

All the talk today trying to soothe the markets' subprime fears fueled a rebound in the financials. Yet shares of GS failed to participate. The stock was somewhat volatile with a $4.00 range but shares eventually closed in the red. This is somewhat aggressive given GS's volatility. If the stock bounces look for a failed rally in the $220-225 zone as a new entry point for puts. Our target is the 200-dma but we'll use an exit in the $208.00-206.00 zone for now, which is near the bottom of its channel (see chart).

Picked on July 10 at $217.08
Change since picked: - 0.36
Earnings Date 09/12/07 (unconfirmed)
Average Daily Volume = 5.9 million

---

Mettler Toledo - MTD - cls: 97.90 chg: 0.95 stop: 99.11

Wednesday's market bounce powered another rebound in MTD and shares challenged resistance near $98.50 again. We would wait for a new drop under $96.50 (near the 10-dma) or under $96.00 before considering new positions. The 100-dma is still a hazard for the bears.

Picked on June 19 at $ 96.75
Change since picked: 1.15
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume = 215 thousand
 

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.)

---

Genentech - DNA - cls: 75.93 change: 1.08 stop: n/a

Our window to open strangle positions ahead of DNA's earnings report has closed. The company beat estimates by 7 cents and revenues came in above expectations. Unfortunately, DNA's guidance for the next quarter was only in-line with previous estimates so the stock may not see a big move tomorrow. If shares don't pop one way or the other then we might want to abandon the play on Friday. We were suggesting the July $80 calls (DWN-GP) and the July $70 puts (DWN-SN). Our estimated cost is $0.45. We will plan to sell if either option hits $0.90 or higher.

Picked on July 08 at $ 75.10
Change since picked: 0.83
Earnings Date 07/11/07 (confirmed)
Average Daily Volume = 3.5 million
 

Dropped Calls

None
 

Dropped Puts

QUALCOMM - QCOM - cls: 43.84 change: 0.63 stop: 44.05

QCOM hit our stop loss at $44.05. After days of being defensive on QCOM the stock finally stopped us out. Shares suddenly spiked higher in the last hour of trading today to pierce the $44.00 level. We couldn't find any concrete answers as to why QCOM surged higher so keep an eye on the news.

Picked on June 10 at $ 41.87
Change since picked: 1.97
Earnings Date 07/18/07 (unconfirmed)
Average Daily Volume = 18.0 million
 

Dropped Strangles

Chaparral Steel - CHAP - cls: 83.67 chg: 7.98 stop: n/a

Target achieved! We were expecting a big move on CHAP's earnings report due out tonight but the move came early. This morning before the opening bell it was announced that Gerdau Ameristeel (GNA) would pay $4.2 billion to buy CHAP. Shares of CHAP gapped open higher at $83.64 and hit $84.00 before closing with a 10.5% gain. The July $80 calls (ZHQ-GP) in our strangle gapped open at $3.90. Our suggested target was $3.20 so we would have exited at the open.

Picked on July 08 at $ 75.72
Change since picked: 7.95
Earnings Date 07/11/07 (confirmed)
Average Daily Volume = 1.0 million
 

Play Update Archives