Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Goldman Sachs - GS - cls: 177.95 chg: -1.78 stop: 169.45

Two different analyst firms issued downgrades in the brokerage sector and the XBD broker-dealer index crumbled with a 3.4% sell-off. Shares of GS lost 3.9% but the selling stalled near support at the $170 level. We use the term "support" very loosely here since it could just be the sellers ran out of time before the closing bell ran. There is always the chance for a bounce after a sharp down day like this and with GS sitting on the support we're not going to close the play. However, considering the widespread market weakness and after reading tonight's wrap traders might want to bail out of any bullish positions immediately. We're not suggesting new positions.

Picked on August 19 at $175.00
Change since picked: + 2.95
Earnings Date 09/12/07 (unconfirmed)
Average Daily Volume = 11.6 million

---

Intl. Bus. Mach.- IBM - cls: 112.00 chg: -1.44 stop: 107.49

IBM actually held up pretty well considering the tech sector's slide and the 280-point drop in the DJIA. We are not suggesting new positions and more conservative traders may want to raise their stop toward $110 or bail out early right here.

Picked on August 26 at $113.24
Change since picked: - 1.24
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 9.5 million

---

MicroStrategy - MSTR - cls: 69.93 chg: -3.32 stop: 68.99

We warned readers that MSTR could be volatile. The stock pulled back sharply and closed near support at the $70.00 level. Closing at $69.93, under the $70.00 mark, is a bearish signal but after two big down days the stock could be ready to bounce again. It depends on the market action tomorrow. We're not suggesting new positions until we see what happens tomorrow.

Picked on August 26 at $ 76.05
Change since picked: - 6.12
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 358 thousand

---

Transocean - RIG - cls: 99.85 change: -2.53 stop: 99.50

Oil stocks were unable to escape the widespread market mayhem on Tuesday. RIG lost 2.4% and closed under what should have been support at the 10-dma and the $100.00 mark. This looks pretty bearish. It has been our plan to buy calls on a breakout over $105 with a trigger to open positions at $105.75 so technically we're still just spectators at this point. Nimble traders who can jump in and out might want to consider the following. A move over this afternoon's high around $101.55 might be an aggressive, bullish entry point (don't forget resistance near $105). Secondly, a drop under $97.50 would look like a bearish entry point to buy puts.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/07 (unconfirmed)
Average Daily Volume = 7.3 million

---

Sears - SHLD - cls: 140.23 chg: -3.31 stop: 137.45

Tuesday's ugly session pulled the RLX retail index to a 2.2% decline. SHLD pretty much paced the move with a 2.3% loss. The stock's sell-off began to pick up speed late this afternoon as plunged in the last hour toward support near $140. Will SHLD bounce from here? It really depends on the market tomorrow. The situation doesn't look good and more conservative traders may just want to abandon this play now and cut your losses. Or you could raise your stop loss toward the $140 level. We're not suggesting new positions at this time.

Picked on August 21 at $141.50
Change since picked: - 1.27
Earnings Date 08/30/07 (unconfirmed)
Average Daily Volume = 2.1 million
 

Put Updates

Acuity Brands - AYI - cls: 51.86 change: -2.13 stop: 57.11

The oversold bounce from Monday has failed and AYI lost 3.9% and closed at a new relative low. This looks like another entry point to buy puts. We have two targets. Our first target is the $47.75-47.50 range. Our second target is the $45.25-45.00 zone.

Picked on August 26 at $ 52.80
Change since picked: - 0.94
Earnings Date 10/04/07 (unconfirmed)
Average Daily Volume = 536 thousand
 

Strangle Updates

None
 

Dropped Calls

Apple Inc. - AAPL - cls: 126.82 change: -5.43 stop: 127.75

The profit taking only got worse on Tuesday. Shares of AAPL broke down under support near $130 and its 50-dma. The midday rebound failed under the $130 level, now short-term resistance. AAPL looks poised to dip back toward the $120 region. Our stop loss was at $127.75, which was hit this morning.

Picked on August 26 at $135.30
Change since picked: - 8.48
Earnings Date 10/18/07 (unconfirmed)
Average Daily Volume = 37.9 million

---

Amazon.com - AMZN - cls: 76.22 chg: -2.43 stop: 74.90

We are suggesting readers exit early in AMZN. The stock hit our initial target yesterday but the market weakness and AMZN's 3% plunge today is suggesting more lows or at least a test of the $75 level before moving higher. We'd rather exit early now than see AMZN break support near $75 soon. Readers could always jump back in if AMZN bounces at $75 or its 50-dma.

Picked on August 19 at $ 75.02
Change since picked: + 3.63
Earnings Date 10/23/07 (unconfirmed)
Average Daily Volume = 10.1 million

---

Chevron - CVX - cls: 84.30 change: -2.70 stop: 82.45

We are abandoning the bullish play on CVX. Oil stocks are not gaining any strength from the rally in crude oil. Today's 3% sell-off in CVX was pretty bearish with a breakdown under its 50-dma, 10-dma and the $85.00 level. There is a chance that CVX could bounce near short-term support around $84.00 but we would not count on it. We're suggesting an early exit now to cut our losses.

Picked on August 26 at $ 87.22
Change since picked: - 2.72
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 12.3 million

---

Russell 2000 ishares - IWM - cls: 76.55 chg: -2.06 stop: 77.49

The rally in the IWM is reversing and falling fast. The Russell 2000 index looks like it's headed for the recent lows. We were suggesting calls on the IWM if it could breakout over resistance at the 800 level. That isn't happening so we're dropping it as a candidate.

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = million

---

DJ Transports iShares - IYT - cls: 84.98 chg: -2.17 stop: 83.99

The Transportation sector is getting hammered. The Dow Jones Transportation index just dropped 2.75%. The IYT ishares followed with a 2.4% sell-off. Volume was low but the move looks ugly no matter how you slice it. The breakdown under its 10-dma and the $86 level was definitely negative. We're suggesting an early exit now to cut our losses.

Picked on August 19 at $ 85.43
Change since picked: - 0.45
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 600 thousand

---

L.B.Foster Co. - FSTR - cls: 36.91 chg: -2.43 stop: 34.95

Ouch! FSTR had been showing relative strength but the stock gave it all back today with a 6.1% sell-off. The stock appears to have produced a bearish double-top pattern under the $40.00 level of resistance. We're suggesting an early exit now to limit our losses.

Picked on August 14 at $ 37.33
Change since picked: - 0.42
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 148 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives