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Call Updates

Constellation Energy - CEG - cls: 99.53 chg: +0.48 stop: 94.45

This looks like a new bullish entry point on CEG. The stock was weak on Friday morning but traders bought the dip three times near $97.50. This coincidentally was also a retest of its rising 10-dma. If you're feeling conservative then readers might want to raise their stop loss toward $96.00. The trend remains bullish. Our target is the $107.50-110.00 range.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 100 CEG-AT open interest=6902 current ask $4.50
BUY CALL JAN 105 CEG-AA open interest= 822 current ask $2.30

Picked on November 20 at $100.56
Change since picked: - 1.03
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Express Scripts - ESRX - close: 64.83 chg: +0.47 stop: 62.45*new*

Friday's bounce in ESRX was not quite as strong as the bounce in the major indices. The overall trend is still bullish but many of the daily technical indicators are bearish. We would suggest waiting for a bounce over $65.25 or over $66.00 before initiating new call positions. More conservative traders might want to tighten their stops toward $63.00 or toward Friday's low near $63.88. We are going to adjust our stop to $62.45. The P&F chart is bullish with a $97 target. Our short-term target is the $69.50-70.00 range.

Suggested Options:
If ESRX rebounds we would suggest buying the January calls.

Picked on November 13 at $ 64.67
Change since picked: + 0.16
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.4 million

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Gilead Sciences - GILD - cls: 43.32 change: +0.26 stop: 41.74

We remain wary of the action in the broader market indices and the BTK biotech index. Unfortunately, GILD isn't showing much relative strength either. Shares of GILD have been trading sideways with a very clear short-term pattern of lower highs, which is bearish. Readers will want to seriously consider just exiting early right now. The stock did bounce from its rising 50-dma so we're not jumping ship just yet but we aren't suggesting new positions either. Currently our stop loss is below the November low. More conservative traders who choose to stay may want to raise their stop toward $42.50 or Friday's low. Our target is the $47.00-48.00 range. There might be some resistance its 10-dma near $45.00.

Suggested Options:
We are not suggesting new positions in GILD.

Picked on November 13 at $ 43.11
Change since picked: + 0.21
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.6 million

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ExxonMobil - XOM - close: 88.29 chg: +1.25 stop: 82.99

As of Wednesday's close the bounce in XOM looked headed for trouble. The stock was poised to turn lower and retest some support levels. That didn't happen. Traders bought the dip on Friday morning and XOM is now pushing against overhead resistance near $89 and its 100-dma. The MACD on the daily chart has produced a new buy signal. We remain bullish on XOM following its recent bounce from support at its rising 200-dma. However, if you enter new positions now you need to give XOM room. The stock could easily dip toward $84 and anywhere in between if crude oil futures turn lower. More conservative traders might want to adjust their stops toward $84.00. Our target is the $92.50-95.00 range. More conservative traders may want to lock in some gains near $90.00. More aggressive traders might want to narrow their exit range to the $94-95 zone.

Suggested Options:
If you are looking for new positions then consider a dip in the $86-87 range or a breakout over $89. You should be aware that the $90.00 level does look like resistance. We would suggest the January calls.

Picked on November 13 at $ 86.75
Change since picked: + 1.54
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 24.2 million
 

Put Updates

Canadian Pacific - CP - cls: 61.10 change: -0.49 stop: 65.26*new*

Railroad stocks were generally higher on Friday yet shares of CP continue to show relative weakness. The stock sank to another multi-month low (60.44). We would not be surprised to see an oversold bounce from the $60.00 level. Any bounce could run into some resistance in the $63.50-64.00 region. We are adjusting our stop loss to $65.26. Our target is the $57.50-57.00 range. The Point & Figure chart is bearish and points to a $51 target

Suggested Options:
We are not suggesting new put positions at this time but a failed rally near the 10-dma could be used as a new entry point. We would suggest the January puts.

Picked on November 19 at $ 62.85
Change since picked: - 1.75
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 553 thousand

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ESSEX Property - ESS - close: 104.10 change: +1.81 stop: 107.31

ESS was caught up in the market rebound on Friday and shares posted a 1.7% gain. Shares should run into resistance in the $105-106 region. More conservative traders might want to tighten their stops closer to the $106 level. We would wait for the current bounce to roll over before considering new bearish put positions. Our target is support in the $94.00-93.00 range. The P&F chart is much more bearish with a $78 target.

Suggested Options:
Wait for the current bounce to fail. We would suggest the January puts.

Picked on November 20 at $101.75
Change since picked: + 2.35
Earnings Date 10/31/07 (confirmed)
Average Daily Volume = 272 thousand

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J.B.Hunt - JBHT - close: 24.31 change: -0.02 stop: 26.11*new*

Trucking stocks struggled again on Friday thanks to some negative comments from management at YRCW. However, investors bought the dip near $24.00 and we would expect the bounce to continue on Monday. Watch for the $25.00 level or the 10-dma near $25.60 to act as overhead resistance. We are adjusting our stop loss to $26.11. Our target is the $22.50-22.00 range. The new P&F chart sell signal has seen the price target fall from $20 to $18.

Suggested Options:
If JBHT provides us a new entry point we would suggest the January or February puts.

Picked on November 20 at $ 24.95
Change since picked: - 0.64
Earnings Date 01/29/08 (unconfirmed)
Average Daily Volume = 1.8 million

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PACCAR - PCAR - close: 48.19 change: +0.51 stop: 50.26 *new*

Nothing has changed much for PCAR. The larger trend is still bearish but the stock has not seen much follow through on the breakdown. Readers can choose to wait for a failed rally under $50.00 or a new decline under $46.25. Our concern is that a bounce back toward $50 would make the recent couple of weeks start to look like a bottom. We are adjusting our stop loss to $50.26. It is a little hard to see but on the weekly chart the latest candle has produced a bullish engulfing candlestick pattern, which should be a caution sign for bears. Our target is the $42.50-42.00 range. The Point & Figure chart is forecasting at $38 target.

Suggested Options:
If PCAR provides a new entry point we would suggest the January puts.

Picked on November 16 at $ 46.99 *triggered
Change since picked: + 1.20
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.7 million

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Regency Centers - REG - cls: 67.61 chg: +1.39 stop: 70.11 *new*

REG continued to bounce on Friday but the stock is trading just under where it should find resistance near $68.00. A roll over or failed rally from here should be a new entry point for puts. However, we want to make a note of the weekly chart. The newest candle on the weekly chart is considered a "hammer" pattern and can usually be seen as a bullish reversal pattern. We are going to try and reduce our risk by adjusting the stop loss to $70.11. Our target is the $62.50-62.00 range near the August 2007 lows.

Suggested Options:
If REG provides a new bearish entry point we would suggest the January puts.

Picked on November 18 at $ 67.56
Change since picked: + 0.05
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 570 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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