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Call Updates

Constellation Energy - CEG - cls: 100.21 chg: +1.61 stop: 95.95*new*

CEG continues to rebound and Friday's 1.6% gain put it back above the $100 level. We would consider new bullish positions here but shares do have short-term resistance near $101 and readers might want to wait for a new relative high. The markets look short-term overbought and due for a real dip so you might want to wait for another dip in the $98-99 region again. We are adjusting our stop loss to $95.95. Our target is the $107.50-110.00 range.

Suggested Options:
We would suggest the January calls.

BUY CALL JAN 100 CEG-AT open interest=6805 current ask $4.10
BUY CALL JAN 105 CEG-AA open interest= 750 current ask $1.90

Picked on November 20 at $100.56
Change since picked: - 0.35
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Energizer - ENR - close: 113.63 chg: +1.24 stop: 107.85

ENR actually gapped open higher on Friday morning and then spent the rest of the session consolidating sideways. The rally on Friday is a bullish breakout above its recent highs and shares have produced a new bullish triangle breakout buy signal on its P&F chart. The P&F chart target is now $157. We could not find any news to account for the gap higher. While we would consider new bullish positions here we're expecting a consolidation in the major indices. More patient investors might want to wait for another dip into the $111-110 region. Our target is the $119.00-120.00 range

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 110 ENR-AB open interest= 20 current ask $7.50
BUY CALL JAN 115 ENR-AC open interest= 69 current ask $4.70
BUY CALL JAN 120 ENR-AD open interest= 10 current ask $2.75

Picked on November 26 at $112.75 *triggered
Change since picked: + 0.88
Earnings Date 01/28/08 (unconfirmed)
Average Daily Volume = 511 thousand

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Flowserve - FLS - cls: 94.09 change: +0.80 stop: 88.45

FLS showed some strength early on Friday with a spike higher above the $95.00 level. The stock hit a new three-week high and produced a new buy signal on its P&F chart. The Point & Figure chart now suggests a $111 target. FLS pared most of its gains on Friday but the overall trend is still bullish. We're concerned that the major indices are short-term overbought and due for a dip. So it might pay off to wait for FLS to dip again in the $92.00-93.00 region. We have our stop loss under the late November low but more conservative traders may want to consider a stop loss closer to $90.00. Our target is the $99.50-100.00 range.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 95.00 FLS-AS open interest=652 current ask $4.90
BUY CALL JAN 100.0 FLS-AT open interest=114 current ask $2.90

Picked on November 25 at $ 93.04
Change since picked: + 1.05
Earnings Date 02/28/08 (unconfirmed)
Average Daily Volume = 724 thousand

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Gilead Sciences - GILD - cls: 46.54 change: +0.78 stop: 43.85*new*

GILD continues to step higher. The stock looks short-term overbought so we're not suggesting new positions at this time. If there is any profit taking the $45.00 level should be short-term support. The stock came within 9 cents of hitting our target on Friday afternoon. We're still aiming for the $47.00-48.00 range. More aggressive traders may want to aim higher. Please note that we're adjusting our stop loss to $43.85.

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

Picked on November 13 at $ 43.11
Change since picked: + 3.43
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.6 million

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Synaptics Inc. - SYNA - close: 55.54 chg: -3.50 stop: 52.95

On Thursday night we suggested that more conservative traders may want to exit early but it looks like everyone decided to exit at once and lock in some gains. SYNA completely under performed the markets with a big 5.9% sell-off on above average volume. This is now starting to look like a potential bearish double-top pattern with the peak in earl November and now last week. SYNA should find some support in the $53-55 region but wait for signs of a bounce if you're looking for a new bullish entry. We are not suggesting new plays at this time. Our target is the $61.50-62.00 range.

Suggested Options:
We are not suggesting new plays in SYNA at this time.

Picked on November 26 at $ 56.55 *triggered
Change since picked: - 1.01
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 1.1 million

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ExxonMobil - XOM - close: 89.16 chg: +0.57 stop: 83.95 *new*

No one ever accused the stock market of being logical. Crude oil just suffered its biggest one-week loss in years and the oil stocks are rebounding higher. Shares of XOM managed to maintain its bullish breakout over technical resistance at the 100-dma. The stock looks poised to breakout higher over the $90.00 level and its 50-dma soon. More conservative traders might want to do a little profit taking near $90.00. On the other hand a rally over $90.00 or its 50-dma could be used as a new bullish entry point. However, if you're launching new positions now we'd suggest a might tighter stop loss, maybe near $87.50 (and we'd aim for the $94.50-95.00 zone). Speaking of stops we're adjusting our stop loss to $83.95. Our target is the $92.50-95.00 range. More aggressive traders might want to narrow their exit range to the $94-95 zone.

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

Picked on November 13 at $ 86.75
Change since picked: + 2.41
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 24.2 million
 

Put Updates

ESSEX Property - ESS - cls: 103.74 chg: +2.25 stop: 105.55

Danger! ESS gapped higher on Friday morning. Shares broke through short-term resistance near the 10-dma and broke out above its trend of lower highs. We could not find any specific news to account for ESS' rally and strong volume. This is a danger sign for the bears. More conservative traders may want to abandon ship early right here. We are noting that resistance near $105 held its ground so we're not closing the play just yet. However, we're not suggesting new positions either. Our target is support in the $94.00-93.00 range. The P&F chart is much more bearish with a $78 target (in spite of the recent bounce).

Suggested Options:
We are not suggesting new positions in ESS at this time.

Picked on November 20 at $101.75
Change since picked: + 1.99
Earnings Date 10/31/07 (confirmed)
Average Daily Volume = 272 thousand

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Harley Davidson - HOG - cls: 48.02 change: +1.01 stop: 50.01

Traders bought the dip in HOG on Friday and the stock spiked higher at the opening bell. Shares completely reversed Thursday's losses and the stock is challenging resistance at the $48.00 level. On Thursday the company had its credit rating downgraded by S&P. That news was followed by a similar downgrade by Fitch on Friday who cut their outlook to "negative" citing slowing sales and falling margins for HOG. The stock now has a two-week trend of higher lows. Readers might want to wait for a new decline under $47.00 or under $46.50 before considering new bearish put plays. Our target is the $41.00-40.00 range. The P&F chart is bearish with a $38 target.

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

Picked on November 27 at $ 46.48
Change since picked: + 1.54
Earnings Date 01/17/08 (unconfirmed)
Average Daily Volume = 2.1 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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