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Call Updates

Aracruz Celulose - ARA - cls: 76.17 chg: +1.73 stop: 72.49

The $74 region held as support as traders bought the dip in ARA. Friday's rebound is a new bullish entry point to buy calls. Short-term technicals are improving and the P&F chart is still bullish with a $93 target. We are leaving our stop loss at $72.49 but more conservative traders could inch their stop closer to the $73.75 area (near Friday's low). We have two targets. Our short-term target is the $79.90-80.00 range. Our more aggressive target is the $82.50-85.00 range.

Suggested Options:
November options expire in two weeks so we're suggesting the December strikes. We do not see any December $85 calls available yet but the symbol should be ARA-LQ.

BUY CALL DEC 75.00 ARA-LO open interest=13 current ask $5.20
BUY CALL DEC 80.00 ARA-LP open interest=27 current ask $2.55

Picked on October 31 at $ 76.89
Change since picked: - 0.72
Earnings Date 10/09/07 (confirmed)
Average Daily Volume = 427 thousand

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Boeing - BA - close: 97.76 change: +1.16 stop: 94.85

Bulls bought the dip in BA near its 10-dma. It was an encouraging move following the failed rally under its 50-dma earlier in the week. We had suggested that readers look for a bounce near $96 and the low on Friday was 96.34. Another positive from last week was the new buy signal on BA's Point & Figure chart that now points to a $108 target. We remain bullish here and would use Friday's rebound as a new entry point to buy calls. Our target is the $104-105 zone. More aggressive traders could aim for the highs near $107.

Suggested Options:
November options expire in two weeks so we're suggesting the December strikes.

BUY CALL 95.00 BA-LS open interest=1794 current ask $5.50
BUY CALL 100.0 BA-LT open interest=2039 current ask $2.80
BUY CALL 105.0 BA-LA open interest=1306 current ask $1.20

Picked on October 29 at $ 97.25
Change since picked: + 0.51
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 6.3 million

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BHP Billiton - BHP - cls: 83.73 chg: +1.30 stop: 78.49 *new*

We are changing our entry point on BHP. Instead of waiting for a breakout to a new high we're suggesting that readers buy the bounce on Friday. The big intraday rebound from $80.88 on above average volume looks like an attractive entry to buy calls. We're going to put our stop loss at $78.49 but more conservative traders may want to consider a higher stop closer to $80.00. We're adjusting our targets too. We will have a more conservative target in the $89.00-90.00 range. Plus, a more aggressive target in the $97.50-100.00 range. The P&F chart points to a $104 target.

Suggested Options:
We are suggesting the December or January calls on BHP. It is always up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL DEC 80.00 BHP-LP open interest=694 current ask $8.10
BUY CALL DEC 85.00 BHP-LQ open interest=884 current ask $5.40
BUY CALL DEC 90.00 BHP-LR open interest=675 current ask $3.50

BUY CALL JAN 85.00 BHP-AQ open interest=3447 current ask $6.80
BUY CALL JAN 90.00 BHP-AR open interest=1701 current ask $4.70
BUY CALL JAN 95.00 BHP-AS open interest= 985 current ask $3.30

Picked on November 4 at $ 83.73
Change since picked: + 0.00
Earnings Date 02/06/08 (unconfirmed)
Average Daily Volume = 4.0 million

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Haynes Intl. - HAYN - cls: 84.12 change: -0.04 stop: 81.49*new*

We are somewhat concerned by the action in HAYN on Friday. The stock did manage to bounce intraday from technical support near the 50-dma. Unfortunately, the bounce failed and the stock closed in the red. This sort of relative weakness is a warning sign. We're reluctant to do it but we're adjusting our stop loss lower to $81.49. You can see on the chart below that HAYN could dip back toward its trendline of support near $82.00. A bounce from that trendline could be used as a new bullish entry point to buy calls. We're not suggesting new positions at this time. 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 $104 target.

Suggested Options:
If HAYN provides a new bullish entry point we'd suggest the December calls.

Picked on October 28 at $ 86.49
Change since picked: - 2.37
Earnings Date 12/10/07 (unconfirmed)
Average Daily Volume = 166 thousand

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Kennametal - KMT - close: 89.41 change: +0.57 stop: 86.90

Not much has changed since we added KMT on Wednesday night. The stock has been holding support near $88.00 and Friday's rebound from the $88 level is a potential buying opportunity. However, KMT was paring its gains on Friday afternoon. Readers may want to just wait for a new relative high over $91.21 again before initiating positions. Our target is the $99.00-100.00 range. The P&F chart has a triple-top breakout buy signal with a $102 target. We're suggesting a stop at $86.90 but more conservative traders might try a tighter stop near $87.50 or near $88.00. FYI: KMT has a 2-for-1 stock split set for December 19th.

Suggested Options:
We would suggest either the December or January calls. The $90 or $95 strikes would work well.

Picked on October 31 at $ 91.21
Change since picked: - 1.80
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 404 million

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L-3 Comm. - LLL - cls: 110.06 chg: +2.26 stop: 103.90

The defense sector continues to show strength and the DFI index hit another new all-time high on Friday. LLL contributed to that move with a 2% gain and a new all-time high over resistance at the $110 mark. If you prefer to buy momentum then this is another new entry point. Currently we have a target in the $114.00-115.00 range. We are adding an aggressive target in the $118.00-120.00 zone. More conservative traders may want to tighten their stops. FYI: The P&F chart's bullish target has risen from $133 to $139. Plus, LLL will webcast its upcoming investor conference on Tuesday, November 6th, 2007 at 8:00 a.m. ET.

Suggested Options:
We would suggest the December or January calls.

BUY CALL DEC 110 LLL-LB open interest=148 current ask $4.20
BUY CALL DEC 115 LLL-LC open interest=283 current ask $2.00

BUY CALL JAN 110 LLL-AB open interest=3151 current ask $5.50
BUY CALL JAN 115 LLL-AC open interest=3700 current ask $3.00

Picked on October 29 at $108.10
Change since picked: + 1.96
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 627 thousand

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Siemens - SI - close: 135.40 change: +4.25 stop: 129.75

Investors applauded news that SI was about to go on a diet. The CEO has decided to cut jobs and tie the management's compensation toward their performance. The share price reacted with a decent bounce on Friday that almost recovered Thursday's losses. We remain bullish and Friday's bounce looks like a new entry point. Currently our target is the $139.85-140.00 range but we're thinking about adding a more aggressive target in the $144-145 zone. The P&F chart is pretty bullish with a $182 target. 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.

Suggested Options:
We would suggest the December or January calls. The $135 or $140 would be our preferred strike prices.

Picked on October 29 at $135.54 *gap higher entry
Change since picked: - 0.14
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 582 thousand

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Sina Corp. - SINA - cls: 57.83 change: +2.33 stop: 53.45

Traders quickly bought the dip in SINA on Friday and the stock added more than 4% on strong volume. Our target is the $59.50-60.00 range but given SINA's relative strength readers may want to be more aggressive. We're going to add a second, more aggressive target in the $63.00-65.00 range. The Point & Figure chart is bullish with an $81 target. More conservative traders may want to tighten their stops toward $55.00. Meanwhile it looks like SINA will report earnings in the November 8th - 22nd range but we still don't have a confirmed date yet. We do not want to hold over the report.

Note: We would suggest selling half or more of your position at our first target. More conservative traders may want to take some money off the table right now!

Suggested Options:
Friday's move looks like a new entry point if you're aiming for our aggressive target. We'd suggest the December calls.

Picked on October 23 at $ 53.40
Change since picked: + 4.43
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.)

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Borg Warner - BWA - cls: 103.67 change: -1.04 stop: n/a

BWA suffered some profit taking on Friday but traders bought the dip twice in the $102.50-102.00 zone. The stock continues to look poised for more gains. We are not suggesting new strangle positions. At this time we have two weeks left on 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.

Suggested Options:
We're not suggesting new positions at this time.

Picked on October 23 at $ 95.67
Change since picked: + 8.00
Earnings Date 10/25/07 (confirmed)
Average Daily Volume = 392 thousand

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Express Scripts - ESRX - cls: 65.05 chg: +1.06 stop: n/a

ESRX continues to rally and shares closed at a new all-time high. If the stock can add another two or three points it should push the call side of our strangle to our target. 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.

Suggested Options:
We are not suggesting new positions on ESRX at this time.

Picked on October 21 at $ 59.65
Change since picked: + 5.40
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.1 million

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Intl. Bus. Mach. - IBM - cls: 114.59 chg: +0.94 stop: n/a

IBM has continued to creep higher the last several days. The lack of a big move on earnings has doomed this strangle play. Unless IBM sees some really big swings in the next couple of weeks this is a bust. 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.

Suggested Options:
We're not suggesting new positions on IBM.

Picked on October 15 at $118.03
Change since picked: - 3.44
Earnings Date 10/16/07 (confirmed)
Average Daily Volume = 7.5 million

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Monster Worldwide - MNST - cls: 38.87 chg: -0.03 stop: n/a

MNST failed to move much on the jobs report this Friday. The stock traded sideways in a $1.00 range with a meager bounce from technical support at the 10-dma. At this point our best bet for a profit is to see a strong move to a new relative high toward the 200-dma. We have two weeks left on the November options. 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.

Suggested Options:
We are not suggesting new strangles on MNST at this time.

Picked on October 23 at $ 37.22
Change since picked: + 1.65
Earnings Date 10/24/07 (confirmed)
Average Daily Volume = 2.0 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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