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Call Updates

Apple Inc. - AAPL - cls: 140.31 change: -0.46 stop: 133.69

AAPL held up pretty well considering the news today. Making headlines was news that AAPL CEO Steve Jobs had been subpoenaed by the SEC over AAPL's option backdating issues. The lack of movement on the news suggests the market doesn't expect any serious problems arising from the SEC's inquiry. AAPL also held its ground near $140 even though the wider market was experiencing some profit taking after this week's gains. Look for a bounce from here as a potential entry point for long positions. More conservative readers may still want to consider a tighter stop loss. We have two targets. Our first, more conservative target is the $144.75-145.00 range. Our second, more aggressive target is the $149.00-150.00 range. We do have a very wide (aggressive) stop loss because the markets and AAPL have been so volatile. Conservative traders are strongly suggested to reconsider a tighter stop loss. The P&F chart is still bullish with a $180 target. We do not want to hold over the mid October earnings report.

Picked on September 17 at $140.25
Change since picked: + 0.06
Earnings Date 10/18/07 (unconfirmed)
Average Daily Volume = 39.9 million

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Broadcom - BRCM - cls: 36.40 change: +0.31 stop: 33.95

Most of the market was stepping backward on Thursday but BRCM displayed relative strength and posted a 0.8% gain. The biggest complaint would be the very light volume on the move. We warned readers that the $37 level would probably be resistance and more conservative traders may want to wait for BRCM to trade over $37.00 before considering new bullish positions. A bounce from here near $36.00 or a rebound on a test of the $35.00 level could be used as alternative entry points. Our target is the $39.85-40.00 range. The Point & Figure chart is bullish with a $49 target.

Picked on September 12 at $ 35.85
Change since picked: + 0.55
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 11.0 million

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Citigroup - C - clos: 47.20 change: -1.07 stop: 44.49

Whoa! C experienced some profit taking today. The brokerage earnings news was mixed with GS beating estimates and BSC missing estimates. Looks like investors chose to be cautious and try to lock in gains. A rebound from the $46.50-47.00 zone could be used as a new entry point. We would definitely wait for a bounce before considering new positions. Our initial target is the $49.85-50.00 range but we might decide later to add a more aggressive target at the 200-dma.

Picked on September 16 at $ 46.64
Change since picked: + 0.56
Earnings Date 10/19/07 (confirmed)
Average Daily Volume = 40.7 million

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Intl. Bus. Mach.- IBM - cls: 116.86 chg: +0.19 stop: 113.90

IBM out performed the broader market but shares closed off their best levels of the session. The stock looks poised to dip again near $116 and probably back to $115 if the major indices continue lower tomorrow. The stock has already hit our $118-120 target range. Our second, more-aggressive target is the $124.00-125.00 zone. FYI: The Point & Figure is very bullish with a $177 target.

Picked on August 26 at $113.24
Change since picked: + 3.62
Earnings Date 10/17/07 (unconfirmed)
Average Daily Volume = 9.5 million

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Stryker - SYK - cls: 68.24 change: -0.44 stop: 65.90

We are still sitting on the sidelines as spectators with SYK. The stock rolled over and is testing the $68 level again. We are going to stick to our plan and wait for a new relative high. We're suggesting readers use a trigger to buy calls at $70.65. If triggered at $70.65 our target is the $74.90-75.00 range. Given the length of SYK's consolidation we would actually aim higher, maybe the $77.50-80.00 range, but we don't have much time and plan to exit ahead of the mid October earnings report. The P&F chart is bullish with an $83 target.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/17/07 (confirmed)
Average Daily Volume = 1.4 million

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Thornburg Mtg - TMA - cls: 13.33 chg: -0.17 stop: 10.90

The mortgage lenders are still under performing. The group was led lower by a 4.7% decline in CFC today. The negative earnings miss by BSC may have also indirectly impacted sentiment for the lenders today. TMA lost 1.25% but on very low volume. We would hesitate to open new positions here without some sort of show of strength. Readers will want to consider a tighter stop loss. We have two targets for TMA. Our first target is the $16.25-16.50 zone. Our second target is the $17.50-19.00 range. The P&F chart has reversed into a new buy signal with a $19.50 target. We do not want to hold over the mid October earnings report.

Picked on September 16 at $ 13.63
Change since picked: - 0.30
Earnings Date 10/15/07 (unconfirmed)
Average Daily Volume = 5.4 million
 

Put Updates

None
 

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.)

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AutoZone - AZO - cls: 114.03 change: -0.51 stop: n/a

AZO could not escape the profit taking in the markets today. Shares lost 0.44% but it looks like traders were buying the dip near the closing bell. We're quickly running out of time with the September strikes and readers will want to exit early to try and salvage some capital. We are adjusting our targets to breakeven. We listed two strangles. The first strangle was with the September $115 calls (AZO-IC) and the September $105 puts (AZO-UA) with an estimated cost of $2.50. We want to sell if either option hits $2.50 or higher. Our second combo suggested the September $120 calls (AZO-ID) and the September $100 puts (AZO-UT) with an estimated cost of $0.95. We would sell if either option hits $0.95.

Picked on September 16 at $109.90
Change since picked: + 4.13
Earnings Date 09/18/07 (confirmed)
Average Daily Volume = 812 thousand

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Bear Stearns - BSC - cls: 115.46 chg: -0.18 stop: n/a

BSC reported earnings this morning and missed estimates. Shares reacted with another bearish failed rally under the $120 level but overall shares closed almost unchanged. The lack of a reaction is very bad news for our strangle play but we do have some time left on the October options. We're not suggesting new positions at this time. Currently our strangle involves the October $115 call (BSC-JC) and the October $95 put (BVD-VS). Our estimated cost was $9.50 and we want to sell if either option hits $14.00 or more. The company is expected to report earnings on September 20th. This should be considered a more aggressive play.

Picked on September 09 at $105.37
Change since picked: +10.09
Earnings Date 09/20/07 (confirmed)
Average Daily Volume = 8.7 million

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Diamonds - DIA - cls: 137.70 chg: -0.46 stop: n/a

After a huge Tuesday-Wednesday move the DJIA experienced some profit taking. The DIA lost 0.33% on low volume. Readers will want to try and salvage any capital left with Friday as our last day for September options. We're not suggesting new plays at this time. Our DIA strangle play suggested using the September $137 call (DAZ-IG) and the September $127 put (DAW-UW) with an estimated cost of $2.05. We are adjusting our exit to $1.50.

Picked on August 30 at $132.57
Change since picked: + 5.13
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 20.8 million

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Dow Jones Industrial Avg. - DJX - cls: 137.67 chg: -0.49 stop: n/a

The DJX lost 0.3% as it slowly drifted lower on Thursday. Tomorrow is our last day for September options so readers will want to try and salvage any capital left. We're adjusting our exit to $1.25 for the September strikes. We're not suggesting new positions after the Fed meeting tomorrow. We listed two separate strategies. Our September strangle suggested the September $137 calls (DJY-IG) and the September $132 puts (DJW-UB) with an estimated cost of $1.25. Our October strangle suggested the October $137 calls (DJY-JG) and the October $132 puts (DJW-VB) with an estimated cost of $4.75. We want to sell if either option hits $6.75.

Picked on September 16 at $134.43
Change since picked: + 3.24
Earnings Date 00/00/00
Average Daily Volume = million

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Lehman Brothers - LEH - cls: 62.31 chg: -1.80 stop: n/a

LEH suffered some additional profit taking today with a 2.8% sell-off. Tomorrow is our last day for September options. We're adjusting our exit to $0.75 to try and salvage some capital. This was an aggressive play since the September options expire soon. We suggested the September $65 calls (LES-IM) and the September $55 puts (LES-UK). Our estimated cost was $1.55.

Picked on September 16 at $ 59.50
Change since picked: + 2.81
Earnings Date 09/18/07 (confirmed)
Average Daily Volume = 15.4 million

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S&P 100 Index - OEX - cls: 709.81 chg: - 3.72 stop: n/a

Tomorrow is our last day for September options. We're dropping our exit to breakeven at $14.30. Readers might want to use a lower exit to try and salvage some capital. The September $700 calls were trading around $10.50 near the close today. We're not suggesting new positions at this time. Our strangle strategy suggested using the September 700 call (OEZ-IT) and the September 660 put (OEY-UL) with an estimated cost of $14.30. *NOTE - if the September $700 calls don't hit our new exit at $14.30 tomorrow we need to exit at market prices at the closing bell before they expire.

Picked on August 30 at $680.46
Change since picked: +29.35
Earnings Date 00/00/00
Average Daily Volume = 1306 thousand

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Financial SPDR - XLF - cls: 34.72 chg: -0.43 stop: n/a

Tomorrow is our last day for September options on the XLF. We're adjusting our exit to breakeven at $0.65. We're not suggesting new positions at this time. We were aggressive and suggested the September options, which expire in two days. Our suggested strangle used the September $35 calls (XLF-II) and the September $33 puts (XLF-UG) with an estimated cost of $0.65.

Picked on September 16 at $ 33.98
Change since picked: + 0.74
Earnings Date 00/00/00
Average Daily Volume = 69.1 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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