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Call Updates

Cameron - CAM - close: 96.94 chg: -0.45 stop: 89.90

Crude oil futures rose sharply today nearing $96 a barrel. Most of the oil stocks were up following the commodity. Shares of CAM slipped less than half a point today but the stock shot higher on Monday breaking out over its 50-dma. More conservative traders will want to consider taking some profits right here! Our target is the $99.00-100.00 range. More aggressive traders could aim for $105 but the stock does have pretty clear resistance near $100. FYI: CAM is due to split 2-for-1 on December 31st, 2007. It is not uncommon for a stock to have a pre-split run up and then a post-split depression. You may want to consider exiting ahead of the stock split.

Picked on December 18 at $ 91.85
Change since picked: + 5.09
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 2.1 million

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ConocoPhillips - COP - close: 88.97 chg: +1.78 stop: 83.85 *new*

As one of the major integrated oil companies COP saw its stock follow oil prices higher. Shares of COP added 2% and hit an intraday high of $89.29. Our short-term target is the $89.50-90.00 zone just under resistance at $90.00. The P&F chart is bullish with a $106 target. We are adjusting our stop loss to $83.85. Odds are good that COP will hit our target tomorrow.

Picked on December 20 at $ 85.23
Change since picked: + 3.74
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 11.4 million

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Energen - EGN - close: 65.88 change: -0.71 stop: 62.95

EGN has spent the last couple of trading sessions moving sideways. The overall pattern is still bullish but short-term EGN is hinting at a dip back toward $65.00 or $64.00. Wait for the dip and the beginning of a bounce before opening new positions. Our target is the $69.50-70.00 range. We're suggesting a stop under the 50-dma so we're adjusting our stop to $62.95. The P&F chart is bullish with a $74 target.

Picked on December 18 at $ 65.32
Change since picked: + 0.56
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 700 thousand

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Express Scripts - ESRX - cls: 74.01 chg: +1.70 stop: 68.99 *new*

It might be window dressing but the rally in ESRX continues. The stock added more than 2.3% and broke out to a new high. We are adjusting our stop loss to $68.99. Our target is the $77.50-80.00 range. The P&F chart is very bullish with a $97 target.

Picked on December 23 at $ 71.09
Change since picked: + 2.92
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.5 million

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Foster Wheeler - FWLT - cls: 161.39 chg: -3.22 stop: 154.99

FWLT is following our script as expected. The stock pulled back into the $162.00-160.00 range where we were suggesting readers buy the dip. Our official entry point is $162. More conservative traders may want to wait for a bounce from here before jumping in. Now that the play is open we have two targets. Our first target will be the $169.00-170.00 range. Our second target is the $179.00-180.00 range.

Picked on December 26 at $162.00 *triggered
Change since picked: - 0.61
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Goodrich - GR - close: 73.47 change: -0.58 stop: 69.95

GR rallied past its 10-dma on Monday but shares pulled back a bit today (-0.7%). Fortunately, traders bought the intraday dip twice near $73 today. We remain bullish and would still consider new positions here. Our target is the $77.50-80.00 range. We're suggesting a stop loss under round-number support at $70.00. The P&F chart is bullish with a $99 target.

Picked on December 23 at $ 72.57
Change since picked: + 0.90
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.2 million

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Holly Corp. - HOC - close: 51.99 change: -0.05 stop: 47.45

HOC has spent the last three sessions trading sideways. The stock failed to rally on the rise in crude oil today. Shares appear to have run into resistance near its 40-dma. The stock may need to rest and dip back toward its 10-dma or $50 level before moving higher. More conservative traders might want to adjust their stop loss toward $50. Our target on HOC is the $54.75-55.00 range. FYI: It does look like HOC has put in a bottom and the P&F chart now points to a $65 target. More aggressive traders may want to aim for the $58-60 zone.

Picked on December 03 at $ 50.58 *bad tick/gap open
Change since picked: + 1.41
Earnings Date 02/12/08 (unconfirmed)
Average Daily Volume = 859 thousand

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Hologic - HOLX - close: 71.28 chg: +0.23 stop: 65.99 *new*

HOLX continues to extend its gains. The stock was added to the NASDAQ-100 index (NDX) as of Monday. Shares are currently trading at all-time highs but they are also looking a little short-term overbought and due for a rest. We're raising our stop loss to $65.99. HOLX has already hit our initial target in the $69.50-70.00 range. Our more aggressive target is the $74.00-75.00 range. FYI: The P&F chart is bullish and points to an $87 target.

Picked on December 18 at $ 66.22
Change since picked: + 5.06
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.8 million

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Noble Energy - NBL - close: 79.74 chg: -0.33 stop: 75.75

NBL has taken a chunk out of our potential gains with a pulled back the last two sessions. We didn't see anything in the news to account for the relative weakness. It looks like simple profit taking after the stock hit new highs last Friday. Broken resistance near $78.00 should be support. Watch for a bounce near $78.00 and its rising 10-dma near $78.25 as a new bullish entry point. Our target is the $84.50-85.00 range. The P&F chart is bullish with an $86 target.

Picked on December 19 at $ 78.25
Change since picked: + 1.49
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Syntel Inc. - SYNT - close: 39.06 chg: -0.11 stop: 35.75

SYNT produced a technical breakout on Monday with its rally through resistance at the 50 and 100-dma. Shares hit our suggested trigger to buy calls at $38.75. Now that the play is open our target is the $44.00-45.00 range. We would still consider new positions now following today's intraday rebound. The P&F chart has recently produced a new buy signal with a $5047 target.

Picked on December 24 at $ 38.75 *triggered
Change since picked: + 0.31
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 232 thousand
 

Put Updates

Boeing - BA - close: 90.00 change: -0.02 stop: 93.26

Monday saw BA pop back toward broken support and new resistance near $90.00. The $90 level held BA again today. This is an important test of resistance at its trendline of lower highs. A new decline under $89.25 or $89.00 would look like an entry point for new puts. More conservative traders may want to consider adjusting their stops toward $91.50. We're leaving our stop at $93.26 for now. 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: - 1.43
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.0 million

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Genentech - DNA - close: 68.06 chg: -0.06 stop: 70.85

Shares of DNA are just not making any progress for us. The stock has been stuck going sideways for almost two weeks. If we don't see some downward movement soon we will drop DNA and move on. We are adjusting our stop loss to $70.15. We would hesitate to open new positions at this time. Our target is the $62.50-60.00 range. The main hurdle for the bear is potential support near the early December lows. The P&F chart is very bearish with a $54 target. FYI: Any time we play a biotech stock it should be considered high risk. You never know when news will come out about some successful or failed clinical trial or some FDA decision that could send the stock gapping one way or the other.

Picked on December 16 at $ 68.43
Change since picked: - 0.37
Earnings Date 01/10/08 (unconfirmed)
Average Daily Volume = 4.3 million

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Garmin - GRMN - close: 103.32 chg: +2.45 stop: 107.25

We are surprised that GRMN did not rally more today. This morning before the opening bell AMZN said it just finished its best holiday season ever and that GRMN's GPS systems were one of AMZN's top selling items this year. Shares of GRMN rallied back from $99.55 but short-term resistance in the $104-105 zone held the rally in place for now. We are concerned that the rebound may have more life left in it so we're not suggesting new positions at this time. More conservative traders may want to exit now or tighten your stop toward $105. A week ago GRMN exceeded our initial target in the $96.00-95.00 zone. Our second more aggressive target is the $91.00-90.00 range. The P&F chart is bearish with an $86 target but the P&F chart also shows potential support near $91.

Picked on December 11 at $104.78
Change since picked: - 1.46
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 6.2 million

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Ralph Lauren Polo - RL - cls: 62.71 change: -0.05 stop: 66.26

Hmmm..... Bears with RL positions should be taking a second look at the stock. Two days in a row the stock has produced a sharp intraday rebound near $61. Could RL be near a short-term bottom? The stock "should" find overhead resistance in the $63.50-64.00 region. Readers may want to wait for a new failed rally pattern to appear before initiating new positions. The Point & Figure chart produced a quadruple bottom breakdown sell signal and points to a $55 target. We were suggesting puts with RL under $64.00. Our target is the $58.00-57.00 range although odds are good the stock will see an oversold bounce near $60.00.

Picked on December 19 at $ 63.11
Change since picked: - 0.40
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Sears Holding - SHLD - cls: 103.02 chg: -1.68 stop: 110.55

We warned readers to expect a bounce near $100 and that is what SHLD delivered on Monday. Today's news that Target (TGT) was lowering its estimates on the quarter hurt the retailers and SHLD slipped again losing 1.6%. SHLD has already exceeded our first target in the $100.50-100.00 range. We are not suggesting new bearish positions at this time. If you did not exit completely we strongly recommend that you lock in some profits here. 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: - 7.26
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 3.3 million

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Shire Plc - SHPGY - close: 69.20 change: +0.36 stop: 71.01

Readers need to be on their toes here. SHPGY is very close to providing a new entry point. The stock has rallied just enough to "fill the gap" from mid December. A failed rally here, especially under $70.00, would be a new entry point to buy puts. Our initial target is the $65.25-65.00 range and we have decided to add a second, more aggressive target in the $62.00-60.00 zone. 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: + 1.13
Earnings Date 02/00/08 (unconfirmed)
Average Daily Volume = 956 thousand
 

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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Encana - ECA - close: 69.17 chg: +0.09 stop: n/a

ECA broke out from its sideways trading range on Monday. We are surprised that the stock did not rally higher today after the sharp rise in crude oil. We're not suggesting new positions at this time although to be honest a bullish breakout over $70.00 would look like an entry point to buy calls. This is a strangle. The options we listed were the January $75 calls (ECA-AO) and the January $60 puts (ECA-ML). Our estimated cost is $0.65. We want to sell if either option hits $1.85 or higher. FYI: The P&F chart is bullish with a $92 target.

Picked on December 20 at $ 67.52
Change since picked: + 1.65
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 2.7 million
 

Dropped Calls

None
 

Dropped Puts

Amazon.com - AMZN - cls: 92.85 chg: +1.84 stop: 92.55

At 6:00 a.m. this morning AMZN issued a press release stating that this Christmas was their best holiday season ever. The positive news lifted the stock from $90 to an intraday high of $93.94. Shares hit our stop loss at $92.55. We warned readers over the weekend that AMZN would probably hit our stop this week. AMZN had already hit our initial target in the $85.25-85.00 range.

Picked on December 16 at $ 89.08
Change since picked: + 3.77
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 8.8 million
 

Dropped Strangles

None
 

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