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Call Updates

United States Cellular - USM - cls: 71.10 change: +1.75 stop: 67.89

USM managed a 2.5% bounce today but I have to admit the action still looks a little weak. Some of the short-term technical oscillators are suggesting that USM is going to roll over again. I wouldn't be surprised to see USM retest $68.00 as support. If it does retest $68.00 a bounce from this level could be used as another entry point to buy calls. Our target is the $74.50-75.00 range. Our entry point was $71.00.

Picked on January 25 at $ 71.00 *triggered
Change since picked: + 0.10
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 153 thousand

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United States Oil Fund - USO - cls: 72.35 chg: +0.44 stop: 68.59

Traders bought the dip in crude oil this morning. The USO managed a $2 bounce off its lows. This ETF looks poised to rally toward $74 and our target. Our short-term target is the $74.50-75.00 range. More aggressive traders could easily aim for the $77.50-79.00 region.

Picked on January 24 at $ 70.93
Change since picked: + 1.42
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 3.2 million
 

Put Updates

Ambac Fincl. - ABK - cls: 11.13 change: -0.41 stop: n/a

The financial sector rallied more than 3.2% and yet shares of ABK closed in the red. This sort of relative weakness should be telling you something. We think ABK is going under and would still consider new put positions here. We are labeling this a speculative, higher-risk, lottery-ticket style of play. We will have to play it by ear when it comes to exiting but we're looking for a decline to $5.00 or less. We were suggesting the May puts.

Picked on January 27 at $ 11.54
Change since picked: - 0.41
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 10.9 million

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Hartford Fin. - HIG - close: 78.16 chg: +3.03 stop: 81.01

HIG did not cooperate with us but it may work out. The stock looks poised to rally toward resistance near $80.00. Look for a failed rally at $80 as a new bearish entry point to buy puts. Our short-term target is the $70.50-70.00 zone.

Picked on January 27 at $ 75.13
Change since picked: + 3.03
Earnings Date 01/24/08 (confirmed)
Average Daily Volume = 2.4 million

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Harley-Davidson - HOG - cls: 39.13 chg: +1.17 stop: 42.51

HOG managed a 3% bounce today, which is even more impressive considering it came back from an intraday low under $37.00. At this point we would wait on new put positions. The stock looks like it could rally back to short-term resistance near $42.00. Wait for a failed rally to show up before jumping in with puts. We have two targets. Our first target is the $35.25-35.00 range. Our second, more aggressive target is the $32.50-30.00 zone.

Picked on January 27 at $ 37.96
Change since picked: + 1.17
Earnings Date 01/25/08 (confirmed)
Average Daily Volume = 2.4 million

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MBIA Inc. - MBI - close: 14.85 change: +0.65 stop: n/a

If MBI continues to bounce on hopes of a bail out then great! That just means we'll get a better entry point on puts. Right now the $15 level looks like short-term overhead resistance and a rally over $15 should send it straight to short-term resistance near $17.00. We would still consider buying puts now but a failed rally near $17 would even be better. Readers might consider buying the May $10 put instead of the $7.50 if this happens. We're not listing a stop loss. This is a lottery ticket play. We'll win big or it's going to go bust. This is one of the few times that we will hold over earnings. MBI reports earnings on Thursday morning before the bell. We will have to play it by ear when it comes to exiting but we're looking for a decline to $5.00 or less.

Picked on January 27 at $ 14.20
Change since picked: + 0.65
Earnings Date 01/31/08 (confirmed)
Average Daily Volume = 15.2 million

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Millicom - MICC - close: 100.55 change: +1.22 stop: 105.35

MICC under performed the market on Monday. While that is good news for the bears the bounce may not be over yet. Look for a failed rally in the $104-105 zone as a new entry point for puts. Our first target is the $90.50-90.00 range. We are going to list an aggressive target in the $86.00-85.00 zone but readers should plan on taking off most of their position near $90.

Picked on January 27 at $ 99.33
Change since picked: + 1.22
Earnings Date 02/13/08 (confirmed)
Average Daily Volume = 1.0 million

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Perrigo Co - PRGO - close: 30.11 change: -1.57 stop: 32.11

Early this morning PRGO broke down under support at $30.00 and hit our suggested entry point to buy puts at $29.85. Unfortunately, the market rally pulled PRGO back above support at $30.00. If the market continues to rally then PRGO will likely make a go at the $32.00 level of resistance. We're not suggesting new puts until we see a failed rally at $32 or a new relative low under $29.70. Our target is the $25.50-25.00 zone. The P&F chart has turned bearish with a $23 target.

Picked on January 28 at $ 29.85 *triggered
Change since picked: + 0.53
Earnings Date 02/05/08 (confirmed)
Average Daily Volume = 1.3 million

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Polo Ralph Lauren - RL - cls: 60.00 chg: +0.81 stop: 63.75

I hate to say it but RL's bounce from $58 today looks short-term bullish. The stock will probably retest overhead resistance at its 50-dma near $62.50. More conservative traders may want to tighten their stops toward the 50-dma. Wait for the bounce to roll over before considering new puts. We're listing two targets. Our first target is the $55.50-55.00 range. Our second, more aggressive target is the $52.00-50.00 zone.

Picked on January 27 at $ 59.19
Change since picked: + 0.81
Earnings Date 02/06/08 (confirmed)
Average Daily Volume = 1.7 million

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Teleflex - TFX - close: 56.31 change: -0.29 stop: 58.51

Today's relative weakness in TFX is a good sign for the bears but we would still expect the stock to rally if the market continues to rebound. Look for resistance near $58.00. A failed rally near $58.00 would be a good spot for new puts. We're listing two targets. Our first target is the $52.75-52.50 zone. Our second target is the $50.50-50.00 range. The Point & Figure chart is bearish with a $43 target.

Picked on January 27 at $ 56.60
Change since picked: - 0.29
Earnings Date 02/28/08 (confirmed)
Average Daily Volume = 390 thousand
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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