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Call Updates

Apple Inc. - AAPL - close: 139.53 chg: +6.26 stop: 121.90

Technology stocks lead the way on Monday as a generally bullish mood swept over the market thanks to the stronger home sales data this morning. Shares of AAPL sprinted 4.7% and broke out above its simple 50-dma. Shares are now challenging potential resistance at the $140 level. This "should" be resistance so it may pay off to wait for a dip back toward $136-134 and use the pull back as a new entry point to buy calls. We are raising our stop loss to $124.85. Our target is the $148.00-150.00 zone. More aggressive traders could aim higher, maybe $160ish. The Point & Figure chart is bullish with a $166 target.

Picked on March 23 at $133.27
Change since picked: + 6.26
Earnings Date 04/23/08 (unconfirmed)
Average Daily Volume = 48.5 million

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DIAMONDS - DIA - close: 125.34 change: +2.23 stop: 120.75

The better than expected home data and the revised bid for Bear Stearns helped fuel a market-wide rally. The DJIA rose 187 points (1.5%). Meanwhile the DIA posted a 1.8% gain. If you missed the move this morning we would still consider bullish positions on a dip near $124-123 although the breakout over $125 does look like a momentum trader's entry point. Our target is the $128.00-130.00 zone.

Picked on March 23 at $123.11
Change since picked: + 2.23
Earnings Date 00/00/00
Average Daily Volume = 19.1 million

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Essex Prop. Trust - ESS - cls: 116.54 chg: +3.54 stop: 109.90

The better than expected home sales figures this morning fueled rallies in the REIT stocks in addition to the homebuilders. Shares of ESS rose 3% and broke through its long-term trendline of resistance. We were waiting for the breakout over $115 and this trendline with a suggested trigger to buy calls at $115.50. The play is now open. Our target is the $124.50-125.00 range. Traders should expect some resistance near $120 but it will probably be temporary. The Point & Figure chart is bullish with a triple-top breakout buy signal and a $132 target. FYI: Aggressive traders could also try buying calls on another dip near $111-110.

Picked on March 24 at $115.50 *triggered
Change since picked: + 1.04
Earnings Date 05/05/08 (unconfirmed)
Average Daily Volume = 408 thousand

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Intuitive Surgical - ISRG - cls: 327.24 chg: +26.55 stop: 278.00

Did we mention that shares of ISRG were volatile? Sometimes that can work in our favor. Today shares of ISRG opened at $302.74 and soared to an 8.8% gain. ISRG did so on above average volume, which is normally a good sign. The stock has cleared potential resistance near $310-315. After such a big move we would not suggest new positions at this time. The intraday high was $335.00. Our target is the $339.00-340.00 zone. More aggressive traders may want to aim higher. The bullish target on the P&F chart just jumped from $360 to $456.

Picked on March 23 at $300.69
Change since picked: +26.55
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Ambac Fincl. - ABK - cls: 6.41 change: -0.29 stop: n/a

In spite of the strength in financials today shares of ABK continue to under perform. We are not suggesting new bearish positions in ABK. This remains a very speculative play. We will definitely hold over the April earnings if we get the chance. Previously we had been suggesting the May out-of-the money puts ($5.00 and $2.50 strikes).

The bounce from $5.00 is struggling.
Picked on January 27 at $ 11.54
Change since picked: - 5.13
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 10.9 million

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Cytec Ind. - CYT - close: 53.05 chg: +0.43 stop: 56.15

We remain wary of bearish positions in CYT only because of the market's newly bullish tone. Thus far the trading in CYT continues to look bearish. Shares failed near short-term resistance at its trendline of lower highs. The $50.00 level looks like nearest support so we are targeting a drop into the $50.25-50.00 zone. More aggressive traders might want to consider aiming lower.

Picked on March 09 at $ 54.72
Change since picked: - 1.67
Earnings Date 04/17/08 (unconfirmed)
Average Daily Volume = 601 million

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MBIA Inc. - MBI - close: 14.17 change: +1.40 stop: n/a

MBI turned in a very big bounce today and broke through a few resistance levels including its 50-dma. Shares ended the session up 10%. Meanwhile the war of words between MBI and Fitch ratings continues. We're not suggesting new bearish positions at this time. We had been suggesting the out-of-the-money May puts (7.50, 5.00 and 2.50 strikes). We will definitely hold over the April earnings if we get the chance.

Picked on January 27 at $ 14.20
Change since picked: - 0.03
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 15.2 million
 

Strangle Updates

None
 

Dropped Calls

Research In Motion - RIMM - cls: 111.83 chg: +6.89 stop: 95.75

Target exceeded. Tech stocks were a big part of today's rally and RIMM led the charge. The stock closed with a 6.5% gain and hit an intraday high of $112.24. Our target was the $110-112 zone. We remain bullish on RIMM but would not want to hold over next week's earnings report on April 2nd. More aggressive traders may want to aim for $120. Right now a dip near $105-106 might be a short-term entry point to buy calls again.

Picked on March 11 at $100.74 /target exceeded $112.24 high
Change since picked: +11.09
Earnings Date 04/02/08 (confirmed)
Average Daily Volume = 25 million
 

Dropped Puts

None
 

Dropped Strangles

None
 

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