Goodrich Corp. - GR - close: 71.93 change: +2.19 stop: 66.90
GR spent most of the day churning sideways in the $70.00-70.50 zone but eventually the rally took hold and shares added 3.1% by the closing bell. This rebound from a test of support near $70.00 looks like a new bullish entry point to buy calls. However, bear in mind that the major market indices are in short-term bearish trends. Our conservative target is the $74.90-75.00 range. Our more aggressive target is the $78.00-80.00 range. The P&F chart is bullish and points to a $99 target.
Picked on November 05 at $ 71.05
Icon Pub. Ltd. - ICLR - close: 56.06 chg: -2.60 stop: 55.90
Danger, danger, Will Robinson! If we had the friendly robot from Lost in Space to help he would be crying out in alarm. ICLR lost 4.4% on no news today. Furthermore today's decline is a HUGE show of weakness in the face of today's widespread market rally. Shares managed to hold at support near $56.00 but this doesn't bode well for tomorrow. Today's decline makes the recent trading look like a bearish double-top pattern on the daily chart. We're not suggesting new positions at this time. Our target is the $63.50-65.00 range. We would consider this a higher-risk play for the simple reason that volume is so low on both the stock and the options.
Picked on November 06 at $ 58.79
L-3 Comm. - LLL - cls: 113.05 chg: +2.72 stop: 107.99
It's a similar story here. LLL bounced around what should have been support near $110 (the low today was 109.50) until the market-wide rally finally infected shares of LLL, which shot up to a 2.4% gain. The rebound today looks like a new bullish entry point to buy calls. However, we remain very wary of the strength in the broader market. Readers might want to adjust their stops toward today's low. LLL has already hit our first target in the $114-115 range. Our second, more aggressive target is the $118.00-120.00 range. FYI: The P&F chart's bullish target has risen from $133 to $139.
Picked on October 29 at $108.10
Las Vegas Sands - LVS - cls: 118.15 chg: +5.09 stop: 107.45
LVS displayed some relative strength. Instead of rolling over the stock gapped open higher at $115 and rallied almost all day. Shares broke through the 10-dma and closed with a 4.5% gain. More conservative traders may want to raise their stops! LVS has already hit our initial target near $117. Our secondary, aggressive target is the $121.00-122.50 zone.
Picked on November 08 at $111.60
Northrop Gruman - NOC - cls: 83.76 chg: +2.01 stop: 79.99
Bulls bought the dip in NOC and the stock rallied past its 10-dma and did so on strong volume. The rebound today looks like a new bullish entry point to buy calls. Our target is the $89.00-90.00 range. The P&F chart shows a bullish catapult pattern with a $92 target.
Picked on November 06 at $ 84.48
Dryships - DRYS - cls: 98.23 change: +14.42 stop: 100.75 *new*
Umm... did we happen to mention that DRYS was a volatile stock? Yesterday the stock plunged more than $13 and today it completely erased that loss. Overhead resistance near its 50-dma and the $100.00 mark held but if the wider market sees any sort of follow through on today's market rally then we would expect to see DRYS hit our stop loss. Speaking of stops at $100.05 that seems just a little too close and we could get stopped out on a very minor break above resistance. We're going to adjust the stop to $100.75, which is still relatively close. We are not suggesting new positions at this time although technically a failed rally at $100 would be a new bearish entry point. Our target is the $80.50-80.00 range. FYI: Yesterday DRYS announced a 3-for-1 stock split. Today's big move +17% might have gotten a boost from that news.
Picked on November 11 at $ 97.13
(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: 100.00 change: +0.87 stop: n/a
The action in BWA today looks like relative weakness. Shares traded sideways and closed at the $100 mark. This would have been a good day to see another rally higher. The lack of movement is just another nail in this strangle play's coffin. We have three days left before November strikes expire. 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. Due to our lack of time we are adjusting our target to breakeven at $4.50.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 64.67 chg: +1.29 stop: n/a
Bulls continued to buy the dip in ESRX and if the rally can maintain any momentum we might have a chance. Please note that due to our lack of time we're adjusting our target to $2.50. More conservative traders might want to plan an exit at breakeven. There are three days left for November options. 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 $2.50 or higher.
Picked on October 21 at $ 59.65
Monster Worldwide - MNST - cls: 36.51 chg: +1.09 stop: n/a
The situation looks pretty grim for this strangle play. MNST needs to produce some big moves and in a hurry. We only have three days left on 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 are adjusting our exit to breakeven at $1.75.
Picked on October 23 at $ 37.22
Chipotle Mexican Grill- CMG - cls: 126.45 chg: +9.33 stop: 125.12
A volatile market combined with a volatile stock like CMG turned out to be too dangerous! We warned readers that our biggest risk was a bearish breakdown under support, which we would use as an entry point for puts, only to see it reverse higher on us. Yesterday the stock lost about 4.50 and today shares completely erased that loss. As the rally ramped up into the closing bell CMG made a final rush higher to breakout above the $125 level and hit our stop loss.
Picked on November 12 at $119.45