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Call Updates

Blackstone - BX - close: 20.57 chg: +1.80 stop: 17.24

Shares of BX displayed some relative strength today. The stock did not see that much weakness this morning and investors bought the dip at $18.22. BX rallied more than 9.5% and closed above round-number resistance at the $20.00 level. Today's move also broke through its short-term trend of lower highs. Now bulls have to contend with the longer-term trend of lower highs. The rally stalled at $21.35 near its 50-dma. A dip back in the $20.00-19.50 zone might be a new bullish entry point. Remember, this is a high-risk, speculative play. We do not want to hold over the February earnings report. Our target is the $24.00-25.00 range for now but we'll probably need to adjust that and will do so once it looks like BX has produced a bottom.

Picked on January 10 at $19.84
Change since picked: + 0.73
Earnings Date 02/11/08 (unconfirmed)
Average Daily Volume: 2.7 million

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Henry Schein - HSIC - cls: 60.96 chg: +0.17 stop: 59.65 *new stop

We are adjusting our strategy on HSIC. More conservative traders can still wait for the breakout over resistance near $64.00. We're suggesting readers buy calls now. HSIC dipped to its trendline of support and bounce. Bulls defended it multiple times near $59.80 and its 50-dma around $60.00. You could still do some profit taking on a move near $64.00. Our target is the $69.00-70.00 range.

Suggested Options:
We are suggesting the February or March calls.

BUY CALL FEB 60.00 HQE-BL open interest= 52 current ask $2.75
BUY CALL FEB 65.00 HQE-BM open interest=427 current ask $0.55

BUY CALL MAR 60.00 HQE-CL open interest= 0 current ask $3.80
BUY CALL MAR 65.00 HQE-CM open interest= 0 current ask $1.35

Annotated chart:

Picked on January 23 at $ 60.96
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume = 623 thousand
 

Put Updates

None
 

Strangle Updates

None
 

Dropped Calls

AGCO - AG - close: 56.98 change: -2.11 stop: 48.99

Target achieved! Another round of panic selling this morning helped pull AG to an intraday low of $49.80. The stock had support near $50.00 and its 200-dma so when things turned around shares of AG really soared. We were suggesting readers buy calls on a pull back into the $51.50-50.00 zone. Our official entry point was $51.50. Our target was the $58.00-60.00 range. AG managed to hit $58.41 this afternoon.

Picked on January 23 at $ 51.50 *triggered /exit $58.00
Change since picked: + 5.48
Earnings Date 02/07/08 (confirmed)
Average Daily Volume = 1.8 million

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Caterpillar - CAT - close: 65.08 change: +1.26 stop: 59.45

Target exceeded. CAT dipped to $61.19 during the market turmoil this morning but when the rally ended the stock managed to breakout over round-number resistance at the $65.00 mark. Our target was the $64.50-65.00 range. It would be tempting to hold bullish positions longer on CAT since the stock looks poised to move higher but we would not want to hold over earnings this week.

Picked on January 22 at $ 59.60 *triggered
Change since picked: + 5.48
Earnings Date 01/25/08 (confirmed)
Average Daily Volume = 6.0 million

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Foster Wheeler - FWLT - cls: 61.40 chg: -2.16 stop: 59.49

FWLT just got hammered intraday again. The 2-for-1 split finally occurred and shares opened at $62.25. Unfortunately, by lunchtime the stock had sunk to $55.50. Our stop loss was triggered at $59.49. FWLT's big afternoon round is tempting and more nimble traders might want to consider buying any further bounce. The stock came very close ($1.50) to our initial target yesterday at $132.50 (66.25 post split).

Picked on January 22 at $ 60.00 *triggered /stopped 59.49
Change since picked: + 1.40
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.6 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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