Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

Boeing - BA - close: 98.59 change: +1.26 stop: 94.85

Shares of BA rallied again with a 1.29% gain. The stock looks poised to breakout over technical resistance at its 50-dma soon. We would consider new positions here although conservative traders may want to wait for a breakout over $100. It looks like the $97 level might be acting as short-term support for BA. 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: + 1.34
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 6.3 million

---

Haynes Intl. - HAYN - cls: 87.52 change: +1.36 stop: 82.45

Bulls bought the dip in HAYN near $85 for the second day in a row. Plus, we noticed that the daily chart's MACD has produced a new buy signal. This looks like a new bullish entry point in HAYN, especially if you believe that HAYN can push past resistance near $90.00. 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: + 1.03
Earnings Date 12/10/07 (unconfirmed)
Average Daily Volume = 166 thousand

---

L-3 Comm. - LLL - cls: 109.64 chg: +1.38 stop: 103.90

Today marks the second day in a row that traders bought the dip in LLL near the $107.50 zone. The stock looks set to breakout past round-number resistance near $110 soon. If you're looking for a new entry point then watch for a breakout past $110. More conservative traders may want to tighten their stops. Our target is the $114.00-115.00 range. The P&F chart is bullish with a $133 target. FYI: LLL will webcast its upcoming investor conference on Tuesday, November 6th, 2007 at 8:00 a.m. ET.

Picked on October 29 at $108.10
Change since picked: + 1.54
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 627 thousand

---

Siemens - SI - close: 136.37 change: +1.32 stop: 129.75*new*

The action in SI may be improving. The stock rose 0.97% and produced a bullish engulfing candlestick pattern with almost average volume, which would be an improvement over the recent volume numbers. We were expecting more of a dip near $133 to fill the gap but the intraday low was $134. Technical indicators are improving and the daily chart's MACD is very close to a new buy signal. We are adjusting our stop loss to $129.75. 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: + 0.83
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 582 thousand

---

Sina Corp. - SINA - cls: 57.33 change: +0.22 stop: 53.45 *new*

Hmmmm... most of the Chinese Internet-related stocks were up strongly today. SINA under performed its peers with a very minor 22-cent gain. This may be a one-day fluke but it should but bulls on the defensive. We're adjusting our stop loss to $53.45. 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. 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

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.)

---

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

Shares of BWA produced another impressive rally (+3.8%) after traders bought the dip near $101 this morning. BWA closed at a new high and did so on big volume. More conservative traders may want to consider taking some profits now. The November $100 calls hit an intraday high of $6.20 and are currently trading at 6.30 bid/6.50 ask. 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

---

Express Scripts - ESRX - cls: 63.01 chg: +1.06 stop: n/a

Bulls bought the dip twice near $61.25 and the afternoon rally pushed ESRX toward new relative highs. 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: + 3.36
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.1 million

---

Intl. Bus. Mach. - IBM - cls: 116.12 chg: +2.00 stop: n/a

IBM finally managed to breakout over resistance near $115 and its 50-dma. Unfortunately, this is bad news for our strangle. At this point we need to see IBM trade near $105 or above $130 for the November strangle to come close to hitting our targets. Odds of that happening are not looking very good. We've been suggesting it for a while now but readers may want to abandon ship. 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: - 1.91
Earnings Date 10/16/07 (confirmed)
Average Daily Volume = 7.5 million

---

Monster Worldwide - MNST - cls: 40.58 chg: +0.69 stop: n/a

MNST displayed some early strength today and investors bought the afternoon dip under $40.00. The close over resistance at the $40 mark is bullish. 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: + 3.36
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

None
 

Dropped Puts

BEA Systems - BEAS - cls: 16.90 change: +0.11 stop: 18.05

We're calling it quits with the BEAS put play. It was our expectation that when BEAS let the $17/share ORCL bid expire (last Sunday) that the stock would give back almost all of its gains. That has failed to occur and the stock is actually trying to bounce higher. We're exiting early.

Picked on October 23 at $ 17.87
Change since picked: - 0.97
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 19.6 million
 

Dropped Strangles

None
 

Play Update Archives