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Call Updates

Boeing - BA - close: 97.33 change: +0.34 stop: 94.85

BA continued to rally this morning but the stock ran into resistance at its 50-dma near $98.73. We warned readers to expect some resistance near the 50-dma. BA eventually gave back most of its intraday gains but the stock out performed the major averages. The daily chart's MACD indicator has produced a new buy signal. Given the late afternoon pull back in BA there may be a dip back toward $96.50-96.00. Wait for the dip as a new bullish entry point. Our target is the $104-105 zone. FYI: The P&F chart is still bearish from the October sell-off.

Picked on October 29 at $ 97.25
Change since picked: + 0.08
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 6.3 million

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Haynes Intl. - HAYN - cls: 86.16 change: -1.21 stop: 82.45

U.S. Steel (X) reported earnings this morning. The company missed estimates and issued negative comments about the fourth quarter. Shares of X lost 7% on the session. This weakness influenced HAYN, which gapped down and hit $85.02 before bouncing back. We see the intraday bounce from support as a new bullish entry point. Our conservative target is the $89.90-90.00 range. Our more aggressive target is the $94.50-95.00 range. The Point & Figure chart has broken through resistance and points to a $100 target.

Picked on October 28 at $ 86.49
Change since picked: - 0.33
Earnings Date 12/10/07 (unconfirmed)
Average Daily Volume = 166 thousand

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L-3 Comm. - LLL - cls: 108.26 chg: +0.29 stop: 103.90

LLL hit a new high this morning at $109.45. Today's early strength helped the daily chart's MACD indicator produce a new buy signal. Readers can choose to use this pull back toward the $108 level or wait for a dip near $106 as a potential entry point. It would be a lot more bullish to see LLL rebound from $108, which as broken resistance should be new support. Our target is the $114.00-115.00 range. The P&F chart is bullish with a $133 target. FYI: If the stock sees any profit taking watch for a bounce near $106 as an alternative entry point for calls.

Picked on October 29 at $108.10
Change since picked: + 0.16
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 627 thousand

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Siemens - SI - close: 135.05 change: -0.90 stop: 127.40

The German DAX stock market index gapped down and then traded sideways all day. Shares of SI followed suit. If today's trading was any clue then odds are growing that SI might pull back toward the $133-132.50 zone soon. We would wait and watch for a dip there as a new bullish entry point. Our primary target is the $139.85-140.00 range. More aggressive traders can aim higher. FYI: SI trades as an ADR here in the U.S. and will most likely gap open one way or the other every session as the ADR adjusts to trading in Europe.

Picked on October 29 at $135.54 *gap higher entry
Change since picked: - 0.49
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 582 thousand

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Sina Corp. - SINA - cls: 57.11 change: +0.16 stop: 52.49*new*

A strong earnings report from Chinese Internet company SOHU helped propel shares of SINA to a new high at $59.27 this morning. Our target is the $59.50-60.00 range. We are not suggesting new positions at this time and some readers may want to exit early to lock in a gain. Please note that we're adjusting the stop loss to $52.49. SINA is due to report earnings somewhere in the October 29th-November 8th range. Hopefully the closer we get to the end of October we'll find a confirmed date since we do not want to hold over SINA's earnings report.

Picked on October 23 at $ 53.40
Change since picked: + 3.71
Earnings Date 11/08/07 (unconfirmed)
Average Daily Volume = 1.0 million
 

Put Updates

BEA Systems - BEAS - cls: 16.79 change: +0.29 stop: 18.05

BEAS has surprisingly managed a 1.7% bounce on Tuesday, albeit on relatively low volume. It could be that some investors are still hoping for buyers to step up and make a bid for the company now that the world knows what the price tag is ($21/share according to BEAS' board). We're not suggesting new positions at this time. Our target is the $15.25-14.75 range.

Picked on October 23 at $ 17.87
Change since picked: - 1.08
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 19.6 million
 

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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Borg Warner - BWA - cls: 101.83 change: -0.92 stop: n/a

BWA encountered a little bit of profit taking after two days of gains. Broken resistance near $100 and the $98.50 zone should be new support. The company's earnings report is behind it and we're not suggesting new strangles. We have less than three weeks left for our November options. The options we suggested for a strangle were the November $100 calls (BWA-KT) and the November $90 puts (BWA-WR). Our estimated cost was $4.50. We want to sell if either option hits $7.25 or more.

Picked on October 23 at $ 95.67
Change since picked: + 6.33
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 392 thousand

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Express Scripts - ESRX - cls: 61.95 chg: +0.08 stop: n/a

ESRX spent Tuesday's session trading sideways. We do not see any changes from our previous comments. We are no longer suggesting new strangle positions on ESRX. The options we suggested for a strangle were the November $65 calls (XTQ-KM) and the November $55 puts (XTQ-WK). Our estimated cost was $1.95. We want to sell if either option hits $3.50 or higher.

Picked on October 21 at $ 59.65
Change since picked: + 2.30
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.1 million

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Intl. Bus. Mach. - IBM - cls: 114.12 chg: -0.68 stop: n/a

IBM is still consolidating under resistance near $115 and its 50-dma. We've mentioned it before but the lack of directional movement in IBM is bad news for our strangle and readers may want to abandon ship. We have three weeks left on our November options. We are not suggesting new strangle positions at this time. Our November strangle suggested the November $125 call (IBM-KE) and the November $110 put (IBM-WB). Our estimated cost was $3.00. We wanted to sell if either option hits $6.00.

Picked on October 15 at $118.03
Change since picked: - 3.91
Earnings Date 10/16/07 (confirmed)
Average Daily Volume = 7.5 million

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Monster Worldwide - MNST - cls: 39.89 chg: +0.57 stop: n/a

MNST displayed some relative strength with a 1.44% gain on Tuesday. Readers may want to abandon ship since the post-earnings volatility was not enough to push our strangle into a profit. There are less than three weeks left for the November strikes. We are no longer suggesting new positions. The options we suggested for our strangle were the November $40 calls (BSQ-KH) and the November $35 puts (BSQ-WG). Our estimated cost is $1.75. We want to sell if either option hits $2.95 or higher.

Picked on October 23 at $ 37.22
Change since picked: + 2.67
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

W-H Energy Services - WHQ - cls: 57.64 chg: -2.18 stop: 56.95

As we expected WHQ reported earnings and managed to beat recently lowered expectations. The problem is that WHQ then followed up with another downward revision for its fourth quarter guidance. The stock sank 3.6% and looks poised to decline towards the $55 zone. We're suggesting an early exit now to cut our losses.

Picked on October 29 at $ 60.05
Change since picked: - 2.41
Earnings Date 10/30/07 (confirmed)
Average Daily Volume = 542 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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