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Call Updates

Apple Inc. - AAPL - cls: 178.02 chg: -1.38 stop: 164.75 *new*

Some of the momentum bulls may be scratching their heads wondering what happened to the rally in AAPL. There was no follow through on yesterday's impressive bounce. Shares were stopped cold at $181.00 with most of the day struggling at $180.00. We might still get another chance to buy the dip but we doubt it. Right now we're adjusting our suggested entry point to buy calls from $166.50-165.00 to $171.00-168.00. We're also raising our stop loss to $164.75, just a few points under the rising 100-dma. There are rising expectations that AAPL is going to take off next week. The MacWorld 2008 conference begins on Monday and the Expo begins on Tuesday, January 15th. We are adjusting our first target to $179.50-180.00. Our second target is $188.00-190.00.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/22/08 (confirmed)
Average Daily Volume = 38 million

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BP Prudhoe - BPT - cls: 84.67 chg: +1.02 stop: 77.90

BPT continues to charge higher. That 10% dividend yield looks pretty good and investors are looking for safe havens. Nothing goes up in a straight line so we're waiting for a pull back. We are suggesting a trigger to buy calls in the $80.50-79.00 range. If triggered our target is the $89.00-90.00 zone.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/08 (unconfirmed)
Average Daily Volume = 84 thousand

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Covance - CVD - cls: 94.79 change: -0.82 stop: 86.99

CVD is seeing a pause in its momentum. We are sticking with our plan to wait for a dip. We are now suggesting that readers buy a dip into the $90.50-90.00 zone. We are setting two targets. Our first conservative target is $94.50-95.00. Our second, more aggressive target is the $99.00-100.00 range.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/23/08 (unconfirmed)
Average Daily Volume = 395 thousand

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Foster Wheeler - FWLT - cls: 147.56 chg: +4.66 stop: 132.99

Target exceeded. It was another volatile day of trading for shares of FWLT. The stock gapped open lower at $138.91 and dipped to $137.92 before rebounding sharply. Call it short covering or call it bargain hunting the stock rallied to $150.50 and its 50-dma. Our first target was the $149.50-150.00 range. The $150 level is short-term resistance so we would expect a dip from here but if the market continues to rebound then FWLT has a decent chance of breaking out past $150. Our second target is the $158.00-160.00 range. If you are looking for a new entry point then watch for a dip and bounce in the $140-142 zone. We are raising our stop loss to $137.85. FYI: FWLT is due to split 2-for-1 on January 22nd.

Picked on January 09 at $142.90
Change since picked: + 4.66
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Hess Corp. - HES - cls: 92.68 chg: -2.10 stop: 89.90

Okay, now it's time for bulls to start worrying. There was no follow through on HES' bullish reversal and rebound yesterday. The stock fell right back toward support in the $90-92 zone. Another bounce from here would be a new entry point but we're turning more cautious! Our target is the $99.00-100.00 range. We do not want to hold over the late January earnings report.

Picked on January 07 at $ 92.00 *triggered
Change since picked: + 0.68
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 4.5 million

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Hologic - HOLX - close: 69.74 chg: +1.41 stop: 66.45

HOLX bounced as expected. We don't see any changes from our previous comments. 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. FYI: HOLX did present at the J.P.Morgan healthcare conference on Wednesday but we didn't see any news on it.

Picked on December 18 at $ 66.22
Change since picked: + 3.52
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.8 million

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Humana Inc. - HUM - cls: 85.07 chg: -0.72 stop: 78.95

HUM actually got some negative analyst comments today. They didn't have much affect on the stock price. Shares continue to look short-term overbought and due for a correction. We will keep an eye on it and look for a new entry point. Right now we'd be watching the $81.00-80.00 zone as the region to watch. We're taking our official entry point off the table for now. If you decide buy a dip we'd use a stop loss around $79.00. So to recap, we do not have an entry point at this time. It's a waiting game to see if HUM pulls back. The next level of overhead resistance should be $90.00. Broken resistance at $80-81 should be support.

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/04/08 (unconfirmed)
Average Daily Volume = 1.3 million

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Inverness Medical - IMA - cls: 62.35 chg: +0.30 stop: 55.99

IMA provided traders another great entry point with a pull back toward $60.00 this morning. Bulls were ready and bought the dip. More conservative traders may want to consider a stop closer to $58. Our target is the $64.00-65.00 range.

Picked on January 08 at $ 58.50 *triggered/gap open entry
Change since picked: + 3.85
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 857 thousand

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Jacobs Engineering - JEC - cls: 90.53 chg: +4.22 stop: 81.65

As expected JEC turned in a strong day. The stock dipped to $84.70 this morning and rallied to an intraday high of $92.80. That is a 9.5% intraday swing and option traders should have been able to make some money on it! The close over $90.00 is bullish but after such a big bounce it would not surprise me to see a little bit of profit taking. We're not suggesting new positions at these levels. Our target is the $94.00-95.00 range. We are suggesting a stop loss under today's low. More aggressive traders may want to aim for $100. This is going to be a short-term play since we plan to exit ahead of the late January earnings report.

Picked on January 09 at $ 86.31
Change since picked: + 4.22
Earnings Date 01/22/08 (unconfirmed)
Average Daily Volume = 1.4 million

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Joy Global - JOYG - cls: 61.90 chg: +1.71 stop: 57.49

JOYG bounced right on cue. Actually shares provided another great entry point with a dip back to its rising 50-dma this morning. We would still consider new positions here or on another pull back near $60.00. We have two targets. Our first target is $67.00. Our second target is $71.50. We do not want to hold over the late February earnings report.

Picked on January 09 at $ 60.19
Change since picked: + 1.71
Earnings Date 02/28/08 (unconfirmed)
Average Daily Volume = 1.7 million

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PetroChina - PTR - cls: 181.65 chg: -0.47 stop: 174.49

Hmm... we are surprised that PTR did not perform better today. The stock gapped down at $177.36 and dipped to support near $175 before bouncing back and hitting a new relative high before paring its gains. The big concern today was news out that that the Chinese government just announced it was freezing prices on gasoline, natural gas and electricity. The move was made as an attempt to slow rising inflation. Shares of PTR lost 2% on the Hong Kong exchange. Given this news our optimism for PTR has cooled a bit. We are not sure how this "freezing" process is going to affect PTR and its stock price just yet. There is potential resistance about every $10 ($190, $200) and the 50-dma. Our first target is the $198.00-200.00 range.

Picked on January 09 at $182.12
Change since picked: - 0.47
Earnings Date 03/10/08 (unconfirmed)
Average Daily Volume = 1.0 million
 

Put Updates

Shire Plc - SHPGY - close: 69.14 change: -0.21 stop: 70.05

"I'm not dead yet", cries our put play on SHPGY. As of last night odds were growing for SHPGY to rally past resistance at $70.00. The stock surprised us and spiked lower this morning before bouncing near support at $68.00. Resistance in the $69.50-69.60 and 50-dma zone is holding for now. However, we're not suggesting new positions and more conservative traders may just want to abandon ship. The afternoon rebound in this stock was a bullish event. The stock has already hit our first target near $65.

Picked on December 13 at $ 68.07 *triggered/gap down entry
Change since picked: + 1.07
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: 67.93 chg: -0.81 stop: n/a

At this point our speculative, high-risk strangle on ECA is dead in the water. The stock will need to see a really big move in a short time frame to give us any sort of decent exit. We're not suggesting new strangle positions at this time. 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 $1.25 or higher. FYI: The P&F chart is bullish with a $92 target.

Picked on December 20 at $ 67.52
Change since picked: + 0.41
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 2.7 million
 

Dropped Calls

Encana - ECA - close: 67.93 change: -0.81 stop: 67.75

Oil stocks hit some profit taking as crude oil spent the session trading sideways. ECA under performed with an intraday dip to $66.59. That was enough to hit our stop and close the play at $67.75. The MACD on the daily chart just produced a new sell signal.

Picked on January 03 at $ 70.10 *triggered
Change since picked: - 2.17
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume = 2.7 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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