Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

Call Updates

China Security - CSR - close: 22.25 change: -1.00 stop: 19.99

Bulls started buying Monday's dip in CSR near the $22 level. This looks like another bullish entry point to buy calls. However, Asian markets might decline again in reaction to Monday's drop in the U.S. markets, which might put more pressure on shares of CSR Tuesday morning. Wait for signs of a bounce tomorrow before jumping in. This is an aggressive play due to the stock's volatility. We're using a very wide stop loss at $19.99. More conservative traders may want to use a stop closer to $21.00. We have two targets. Our first target is the $26.00 level. Our second target is the $29.00 level. The P&F chart is bullish with a $34 target.

Picked on December 16 at $ 23.25
Change since picked: - 1.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 525 thousand

---

Energizer - ENR - close: 113.21 chg: -1.79 stop: 109.95

ENR lost 1.55% today and the short-term technical picture continues to deteriorate. We reiterate our suggestion that readers may want to exit early. ENR looks like it's headed lower and will retest support near $112.50 and then the $110 level again. We are not suggesting new positions. Our target has been the $119.00-120.00 range and shares hit $118.88 on Wednesday last week. FYI: The P&F chart has a very bullish pattern called a bullish triangle breakout and it is forecasting a $157 target.

Picked on November 26 at $112.75 *triggered
Change since picked: + 0.46
Earnings Date 01/28/08 (unconfirmed)
Average Daily Volume = 511 thousand

---

Holly Corp. - HOC - close: 50.20 change: +1.25 stop: 44.95

HOC out performed the broader markets today. Shares added 2.5% and broke through round-number resistance at the $50.00 mark. Volume came in above average on the rally, which is a bullish sign. This looks like a new entry point to buy calls. Our target on HOC is the $54.75-55.00 range.

Picked on December 03 at $ 50.58 *bad tick/gap open
Change since picked: - 0.38
Earnings Date 02/12/08 (unconfirmed)
Average Daily Volume = 859 thousand
 

Put Updates

Agrium - AGU - close: 58.42 change: +0.46 stop: 65.01

The intraday strength in AGU was a little surprising but the rally stalled at the $60.00 level. This now looks like a failed rally entry point for new put positions. More conservative traders may want to use a tighter stop loss. Our target is the $55.10-55.00 zone but more aggressive traders may want to aim for the rising 100-dma closer to $52.00.

Picked on December 11 at $ 59.66
Change since picked: - 1.24
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.6 million

---

Amazon.com - AMZN - cls: 85.09 chg: -3.99 stop: 95.05

Target achieved! The profit taking in AMZN continued today and shares broke down under a number of moving averages including the 50 and 100-dma. Our short-term target was the $85.25-85.00 range. Today's 4.4% sell-off shrugged off positive analyst comments and a raised price target for AMZN this morning. The MACD on the daily chart has just produced a new sell signal. Our second target is the $81.50-80.00 zone. The P&F chart is bearish and today's decline has pushed the P&F target from $84 to $76.

Picked on December 16 at $ 89.08
Change since picked: - 3.99
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 8.8 million

---

Boeing - BA - close: 87.40 change: -1.02 stop: 93.26

BA continues to look bearish following Friday's failed rally at $90.00. We do not see any changes from our previous comments. We have two targets. Our first target is the $85.55-85.00 range. Our second target is the $81.50-80.00 zone. The P&F chart is bearish with a $75 target.

Picked on December 04 at $ 91.43 *triggered/gap down
Change since picked: - 4.03
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.0 million

---

Genentech - DNA - close: 67.57 chg: -0.86 stop: 70.85

DNA lost 1.25% and continues to slip following last week's bearish reversal. We do not see any changes from our weekend comments. The P&F chart points to a $54 target. We're suggesting puts now with DNA under $70.00. Our target is the $62.50-60.00 range. The main hurdle for the bears is support near $65.50. More conservative traders could do some profit taking near $65.00.

Picked on December 16 at $ 68.43
Change since picked: - 0.86
Earnings Date 01/10/08 (unconfirmed)
Average Daily Volume = 4.3 million

---

Garmin - GRMN - close: 101.82 chg: -2.22 stop: 112.55

We do not see any changes from our weekend comments. GRMN continues to look bearish following Friday's failed rally pattern. Remember, this is an aggressive, higher-risk play because the stock can be so volatile and there is still a lot of bullish expectations out there for GRMN's Christmas season. We have two targets. Our first target is the $96.00-95.00 zone. Our second target is the $91.00-90.00 zone.

Picked on December 11 at $104.78
Change since picked: - 2.96
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 6.2 million

---

Sears Holding - SHLD - cls: 103.99 chg: -1.25 stop: 117.55

SHLD lost 1.18% and volume appears to be rising on the sell-off. We don't see any changes from our weekend comments. A failed rally under $110 could be used as a new entry point for puts. We have two targets. Our first target is the $100.50-100.00 range. Our second more-aggressive target is the $92.50-90.00 zone. The P&F chart is bearish with a $78 target.

Picked on December 11 at $110.28
Change since picked: - 6.29
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 3.3 million

---

Shire Plc - SHPGY - close: 67.47 change: -0.51 stop: 73.51

SHPGY gapped down this morning at $66.87 but then staged a recovery. The bounce struggled under the $68 level all day. We remain bearish but the stock could try and "fill the gap" from last Thursday. A failed rally near $70.00 would be our preferred entry point to buy puts again. Our initial target is the $65.25-65.00 range although we're considering a more aggressive target in the $62-60 region. FYI: Any time we play a biotech or even a drug stock we're dealing with a higher-risk situation. We are at risk that some FDA decision or some clinical trial news could send the stock gapping one direction or the other.

Picked on December 13 at $ 68.07 *triggered/gap down entry
Change since picked: - 0.60
Earnings Date 02/00/08 (unconfirmed)
Average Daily Volume = 956 thousand
 

Strangle Updates

None
 

Dropped Calls

Constellation Energy - CEG - cls: 98.95 chg: -1.98 stop: 97.45

CEG is starting to cave in to market pressure. Shares of CEG lost almost 2% and broke down under round-number support at the $100 level. Technically CEG is still inside its bullish channel but we would rather exit early now and cut our losses than wait and see if shares bounce near its rising 50-dma around $96.00.

Picked on November 20 at $100.56
Change since picked: - 1.61
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.3 million

---

Itron Inc. - ITRI - close: 77.87 change: -0.82 stop: 77.85

ITRI continues to see profit taking. The stock lost another 1% and hit our stop loss at $77.85. After six down days in a row the stock is looking short-term oversold and due for a bounce.

Picked on December 06 at $ 80.26 *triggered
Change since picked: - 2.39
Earnings Date 02/13/08 (unconfirmed)
Average Daily Volume = 824 thousand

---

Mobile Telsys - MBT - cls: 89.95 change: -5.27 stop: 91.75

Ouch! Weakness overseas compounded with weakness here in the U.S. and suddenly MBT's relative strength just vanished as traders rushed in to lock in gains. The stock lost more than 5.5% and broke down under round-number support at the $90.00 level. The stock is on the verge of breaking down under its bullish channel. Aggressive traders may want to buy puts on further weakness with a stop above $95.00. We would have been stopped out today at $91.75.

Picked on December 16 at $ 95.22
Change since picked: - 5.27
Earnings Date 03/08/08 (unconfirmed)
Average Daily Volume = 1.6 million

---

Nat.Oilwell - NOV - close: 70.69 change: -6.68 stop: 69.99

Our unrealized $6.64 gain in NOV just vanished in a puff of smoke this morning. NOV announced it was buying rival Grant Prideco (GRP) for $58 a share (7.37 billion). As is normally the case shares of the buyer went down while shares of the company being bought went up. NOV was within 66 cents of our target at Friday's high. Monday's intraday weakness hit our stop at $69.99.

Picked on December 03 at $ 70.73
Change since picked: - 0.04
Earnings Date 02/06/08 (unconfirmed)
Average Daily Volume = 5.5 million

---

Union Pacific - UNP - close: 128.96 chg: -1.60 stop: 129.45

Another day of steep market losses was too much for UNP and the stock broke down under support near $130.00. We recently raised our stop loss so we would have been stopped out at $129.45. We would keep an eye on UNP down the road for future opportunities!

Picked on December 06 at $130.50 *triggered
Change since picked: - 1.54
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 2.3 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

Play Update Archives