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Call Updates

Cameron - CAM - close: 97.70 chg: +0.76 stop: 89.90

CAM continues to near our target in the $99.00-100.00 range. The intraday high was $98.58. More conservative traders may want to do some profit taking now. If you want to avoid holding over the stock split, since some stocks see a post-split depression, then tomorrow is your last day to exit. CAM is due to begin trading post 2-for-1 split on Monday. Oil stocks were up as crude oil posted another gain. The media was contributing the rise in oil to the Bhutto assassination in Pakistan today. Honestly, it would be very tempting to add a second target near $105 but the $100 level does look like significant resistance.

Picked on December 18 at $ 91.85
Change since picked: + 5.85
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 2.1 million

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ConocoPhillips - COP - close: 88.65 chg: -0.32 stop: 83.85

COP failed to follow crude oil prices higher. The stock hit an intraday high of $89.30, which is just 20 cents away from our target in the $89.50-90.00 range. More conservative traders may want to do a little profit taking now. The rally in COP might be getting a little tired and due for a rest. We're not suggesting new positions at this time. The P&F chart is bullish with a $106 target.

Picked on December 20 at $ 85.23
Change since picked: + 3.42
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 11.4 million

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Energen - EGN - close: 65.12 change: -0.76 stop: 62.95

Seeing two minor losses in a row is not something to be alarmed about but we are concerned that EGN is not seeing more follow through on last week's bounce. Some of the daily chart's technical oscillators are hinting at further declines. Watch for a bounce near $65.00 or $64.00 before considering new bullish positions. EGN should find support at its rising 50-dma and the bottom of its rising bullish channel both near $63.70. Our target is the $69.50-70.00 range. The P&F chart is bullish with a $74 target.

Picked on December 18 at $ 65.32
Change since picked: - 0.20
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 700 thousand

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Express Scripts - ESRX - cls: 73.50 chg: -0.51 stop: 68.99

Shares of ESRX are holding up pretty well considering the market's widespread decline today. The stock actually hit another all-time high this morning at $74.40. At this time we would not be surprised to see a pull back toward $72.00-71.00 before moving higher. 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: + 2.41
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.5 million

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Foster Wheeler - FWLT - cls: 156.90 chg: -4.49 stop: 154.99

Ouch! Market weakness today contributed to some profit taking in FWLT. The stock broke down under short-term support near $160 and dipped toward the $155 level before bouncing intraday. The afternoon bounce was struggling and FWLT was edging lower again. The overall trend is still bullish but now after three days of declines the RSI, MACD and stochastic indicators on the daily chart are starting to look weak. We would wait for a bounce back up through the $160 mark before initiating new call positions. If there is any market weakness tomorrow we would expect to be stopped out. On the plus side there are only two days left for fund manages to do any more window dressing for their portfolios and FWLT may benefit from some last minute buying. 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: - 5.10
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Goodrich - GR - close: 72.44 change: -1.03 stop: 69.95

GR lost 1.4% during the market's sell-off on Thursday. Shares look headed back toward rising technical support at the 50-dma close to $71.25. Wait and watch for a bounce before considering new bullish call positions. 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: - 0.13
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.2 million

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Holly Corp. - HOC - close: 50.96 change: -1.03 stop: 47.45

We don't see any real changes from our previous comments on HOC. HOC is slipping back toward what should be support at its rising 10-dma and near the $50.00 region. A bounce near $50.00 would look like a new bullish entry point to buy calls. 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: + 0.38
Earnings Date 02/12/08 (unconfirmed)
Average Daily Volume = 859 thousand

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Hologic - HOLX - close: 69.82 chg: -1.46 stop: 65.99

Uh-oh! The rally in HOLX may have hit a snag. Shares lost 2% in profit taking during the market-wide sell-off. The profit taking isn't such a surprise. HOLX was looking a little overbought. Unfortunately, the stock has produced a bearish engulfing candlestick pattern, which is normally seen as a bearish reversal. We would expect a dip back toward the rising 10-dma, currently near $68. 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: + 3.60
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.8 million

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Noble Energy - NBL - close: 80.55 chg: +0.81 stop: 75.75

NBL bucked the trend and displayed some relative strength with a 1% gain. In the news today NBL announced it was selling its Argentina assets for $117.5 million. While it is encouraging to see the rise today we would still expect a dip back toward the 10-dma sooner rather than later. 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: + 2.30
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Syntel Inc. - SYNT - close: 38.26 chg: -0.74 stop: 35.75

SYNT lost about 1.9% during today's market decline. The close under its 50-dma and 100-dma is a negative but we would watch for a bounce near $38.00 as a new bullish entry point to buy calls. Our target is the $44.00-45.00 range. The P&F chart has recently produced a new buy signal with a $50 target.

Picked on December 24 at $ 38.75 *triggered
Change since picked: - 0.49
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 232 thousand
 

Put Updates

Cameron - CAM - close: 97.70 chg: +0.76 stop: 89.90

CAM continues to near our target in the $99.00-100.00 range. The intraday high was $98.58. More conservative traders may want to do some profit taking now. If you want to avoid holding over the stock split, since some stocks see a post-split depression, then tomorrow is your last day to exit. CAM is due to begin trading post 2-for-1 split on Monday. Oil stocks were up as crude oil posted another gain. The media was contributing the rise in oil to the Bhutto assassination in Pakistan today. Honestly, it would be very tempting to add a second target near $105 but the $100 level does look like significant resistance.

Picked on December 18 at $ 91.85
Change since picked: + 5.85
Earnings Date 01/31/08 Boeing - BA - close: 88.88 change: -1.12 stop: 91.43 *new*

Technically today's move in BA looks like the sort of failed rally near $90.00 and its trendline of lower highs that we can use as a new entry point for puts. However, we're feeling a little bit cautious so we're adjusting the stop loss to $91.43 (our picked price on BA). 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: - 2.55
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 7.0 million

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Genentech - DNA - close: 67.13 chg: -0.93 stop: 70.85

We are still not very excited with DNA's performance thus far but today's decline has convinced us to give it another day, maybe two to re-establish the stock's down trend. Today's move looks like a failed rally under its 10-dma and the stock is now testing short-term support near the bottom of its two-week trading range around $66.85. Another plus for the bears is today's 1.8% drop in the BTK biotech index. The BTK just broke down under its 200-dma again and the overall pattern is looking bearish for the sector index. Our DNA target is the $62.50-60.00 range. The main hurdle for the bear is potential support near the early December lows. DNA's 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: - 1.30
Earnings Date 01/10/08 (unconfirmed)
Average Daily Volume = 4.3 million

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Garmin - GRMN - close: 100.82 chg: -2.50 stop: 107.25

Our GRMN put play is hanging in there. The stock just erased Wednesday's gains and has drifted back toward round-number support at the $100 level. A new decline under $99.00 could be used as a bearish entry point for puts but readers opening new positions will want to readjust their stops. 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: - 3.96
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 6.2 million

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Ralph Lauren Polo - RL - cls: 61.45 change: -1.26 stop: 66.26

Shares of RL traded in a $2.00 range and ended the session with a 2% loss. The trend is still bearish and today's move helps take the edge off of what was starting to look like a potential bottom forming over the last few days. 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: - 1.66
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Sears Holding - SHLD - cls: 101.16 chg: -1.86 stop: 110.55

Thursday's market weakness has pushed SHLD back toward round-number support near $100. If you failed to exit or lock in gains the first time SHLD hit our target near $100 then this is another opportunity. We are not suggesting new bearish positions at this time. 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: - 9.12
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 3.3 million

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Shire Plc - SHPGY - close: 68.68 change: -0.51 stop: 71.01

SHPGY drifted lower today after "filling the gap" yesterday. We remain bearish on the stock but now SHPGY is facing possible support at broken resistance near $68.60-68.50. 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: + 0.61
Earnings Date 02/00/08 (unconfirmed)
Average Daily Volume = 956 thousand

Average Daily Volume = 2.1 million

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ConocoPhillips - COP - close: 88.65 chg: -0.32 stop: 83.85

COP failed to follow crude oil prices higher. The stock hit an intraday high of $89.30, which is just 20 cents away from our target in the $89.50-90.00 range. More conservative traders may want to do a little profit taking now. The rally in COP might be getting a little tired and due for a rest. We're not suggesting new positions at this time. The P&F chart is bullish with a $106 target.

Picked on December 20 at $ 85.23
Change since picked: + 3.42
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 11.4 million

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Energen - EGN - close: 65.12 change: -0.76 stop: 62.95

Seeing two minor losses in a row is not something to be alarmed about but we are concerned that EGN is not seeing more follow through on last week's bounce. Some of the daily chart's technical oscillators are hinting at further declines. Watch for a bounce near $65.00 or $64.00 before considering new bullish positions. EGN should find support at its rising 50-dma and the bottom of its rising bullish channel both near $63.70. Our target is the $69.50-70.00 range. The P&F chart is bullish with a $74 target.

Picked on December 18 at $ 65.32
Change since picked: - 0.20
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 700 thousand

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Express Scripts - ESRX - cls: 73.50 chg: -0.51 stop: 68.99

Shares of ESRX are holding up pretty well considering the market's widespread decline today. The stock actually hit another all-time high this morning at $74.40. At this time we would not be surprised to see a pull back toward $72.00-71.00 before moving higher. 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: + 2.41
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 2.5 million

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Foster Wheeler - FWLT - cls: 156.90 chg: -4.49 stop: 154.99

Ouch! Market weakness today contributed to some profit taking in FWLT. The stock broke down under short-term support near $160 and dipped toward the $155 level before bouncing intraday. The afternoon bounce was struggling and FWLT was edging lower again. The overall trend is still bullish but now after three days of declines the RSI, MACD and stochastic indicators on the daily chart are starting to look weak. We would wait for a bounce back up through the $160 mark before initiating new call positions. If there is any market weakness tomorrow we would expect to be stopped out. On the plus side there are only two days left for fund manages to do any more window dressing for their portfolios and FWLT may benefit from some last minute buying. 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: - 5.10
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Goodrich - GR - close: 72.44 change: -1.03 stop: 69.95

GR lost 1.4% during the market's sell-off on Thursday. Shares look headed back toward rising technical support at the 50-dma close to $71.25. Wait and watch for a bounce before considering new bullish call positions. 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: - 0.13
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 1.2 million

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Holly Corp. - HOC - close: 50.96 change: -1.03 stop: 47.45

We don't see any real changes from our previous comments on HOC. HOC is slipping back toward what should be support at its rising 10-dma and near the $50.00 region. A bounce near $50.00 would look like a new bullish entry point to buy calls. 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: + 0.38
Earnings Date 02/12/08 (unconfirmed)
Average Daily Volume = 859 thousand

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Hologic - HOLX - close: 69.82 chg: -1.46 stop: 65.99

Uh-oh! The rally in HOLX may have hit a snag. Shares lost 2% in profit taking during the market-wide sell-off. The profit taking isn't such a surprise. HOLX was looking a little overbought. Unfortunately, the stock has produced a bearish engulfing candlestick pattern, which is normally seen as a bearish reversal. We would expect a dip back toward the rising 10-dma, currently near $68. 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: + 3.60
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.8 million

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Noble Energy - NBL - close: 80.55 chg: +0.81 stop: 75.75

NBL bucked the trend and displayed some relative strength with a 1% gain. In the news today NBL announced it was selling its Argentina assets for $117.5 million. While it is encouraging to see the rise today we would still expect a dip back toward the 10-dma sooner rather than later. 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: + 2.30
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Syntel Inc. - SYNT - close: 38.26 chg: -0.74 stop: 35.75

SYNT lost about 1.9% during today's market decline. The close under its 50-dma and 100-dma is a negative but we would watch for a bounce near $38.00 as a new bullish entry point to buy calls. Our target is the $44.00-45.00 range. The P&F chart has recently produced a new buy signal with a $50 target.

Picked on December 24 at $ 38.75 *triggered
Change since picked: - 0.49
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 232 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: 68.44 chg: -0.73 stop: n/a

ECA hit some profit taking even as crude oil prices marched higher on Thursday. This dip near $68.00 could be used as a new entry point for strangles but to be honest my bias is bullish for ECA. The options we listed for the strangle 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: + 0.92
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 2.7 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

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