Option Investor
Play Updates

In Play Updates and Reviews

Printer friendly version

Call Updates

Intl. Bus. Mach.- IBM - cls: 114.57 chg: +2.57 stop: 109.85*new*

This looks like another bullish entry point in IBM. The stock broke through its early August highs and the technical indicators are definitely improving. We are adjusting our stop loss to $109.85. Both the $110.00 level and $111.50 region looks like short-term support. We have two targets. Our first target is the $118.00-120.00 range. Our second target is the $124.00-125.00 zone.

Picked on August 26 at $113.24
Change since picked: + 1.33
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 9.5 million


Transocean - RIG - cls: 103.85 change: +4.00 stop: 99.50

Crude oil futures rose sharply and the oil stocks followed this time. Shares of RIG, an oil services stock, rose 4%. We are still waiting for a breakout over resistance near $105.00 and its 50-dma near $105.50. We're suggesting a trigger to buy calls at $105.75. Our target is the $114.00-115.00 range.

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

Put Updates

Acuity Brands - AYI - cls: 53.30 change: +1.44 stop: 57.11

The market's rebound was extremely widespread so it's not surprising to see AYI bouncing. The trend is still bearish but we're not suggesting new positions at this time. More conservative traders may want to tighten their stops and reduce their exposure. 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: + 0.50
Earnings Date 10/04/07 (unconfirmed)
Average Daily Volume = 536 thousand

Strangle Updates


Dropped Calls

Goldman Sachs - GS - cls: 173.72 chg: +2.77 stop: 169.45

GS rebounded from its lows today in what looks like a short-term bullish reversal. Unfortunately, the stock hit our stop loss at $169.45 on the 10:00 a.m. spike lower. We would keep an eye on GS for another entry point. Keep watch on the $180 resistance level for another breakout higher.

Picked on August 19 at $175.00
Change since picked: - 1.28
Earnings Date 09/12/07 (unconfirmed)
Average Daily Volume = 11.6 million


MicroStrategy - MSTR - cls: 68.34 chg: -1.59 stop: 68.99

MSTR failed to rally with the rest of the market on Wednesday. The stock kept dropping and closed with a 2.2% decline. Shares hit our stop loss at $68.99. Failure to participate in today's market-wide rebound is very bearish! Last week's bullish breakout now looks like a bull trap.

Picked on August 26 at $ 76.05
Change since picked: - 7.71
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 358 thousand


Sears - SHLD - cls: 145.61 chg: +5.38 stop: 137.45

Retail stocks were some of the best performers today. The RLX retail index rose 3.8%. Shares of SHLD paced the move with its own 3.8% gain. This looks like another entry point. Unfortunately, we're out of time. SHLD is due to report earnings tomorrow. The company never confirmed its report date and we don't know whether they report tomorrow morning or after the closing bell. Aggressive traders may want to hold over the announcement. We're dropping the stock to avoid holding over earnings.

Picked on August 21 at $141.50
Change since picked: + 4.11
Earnings Date 08/30/07 (unconfirmed)
Average Daily Volume = 2.1 million

Dropped Puts


Dropped Strangles


Play Update Archives