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Call Updates

Apple Inc. - AAPL - close: 140.98 chg: +1.45 stop: 124.85

AAPL continued to rally into Tuesday and shares hit new two-month highs in addition to breaking out past resistance near $140. The move is bullish but there is bound to be a tug-of-war between buyers and sellers. We should be seeing end of quarter window dressing or in AAPL's case it could be undressing since the stock had a terrible quarter. Yet at the same time you've got the bullish camp seeing the last couple of months as a bottom in the stock. We remain bullish but patient traders may want to wait for a dip back into the $137-135 zone as a new entry point for calls. Yesterday we raised the 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: + 7.71
Earnings Date 04/23/08 (unconfirmed)
Average Daily Volume = 48.5 million

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DIAMONDS - DIA - close: 125.13 change: -0.21 stop: 120.75

The worse than expected consumer sentiment data failed to derail the market. Today's move looks like a pause in the rally. The big question for traders right now is will the rally continue past the quarter end on Monday? We remain bullish on the DIA with it trading above its 50-dma. Our target is the $128.00-130.00 zone.

Picked on March 23 at $123.11
Change since picked: + 2.02
Earnings Date 00/00/00
Average Daily Volume = 19.1 million

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Essex Prop. Trust - ESS - cls: 116.39 chg: -0.15 stop: 109.90

We remain bullish on ESS but patient traders may want to wait for a dip before jumping into new call positions. Shares should find short-term support near $112.50 and again near its rising 10-dma. 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: + 0.89
Earnings Date 05/05/08 (unconfirmed)
Average Daily Volume = 408 thousand

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Intuitive Surgical - ISRG - cls: 325.93 chg: - 1.31 stop: 278.00

There was no follow through rally for ISRG today but neither was there any serious profit taking. The lack of selling after yesterday's monster move can be seen as a bullish sign. You might want to consider taking some profits off the table now. We are not suggesting new positions at this time. 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 on Monday.

Picked on March 23 at $300.69
Change since picked: +25.24
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Ambac Fincl. - ABK - cls: 6.70 change: +0.29 stop: n/a

ABK reversed yesterday's decline with a 4.5% pop today. In the news today ABK announced that the company's chairman and CEO would present at the Bank of America 2008 Smid Cap Conference on March 26th. 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: - 4.84
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 10.9 million

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Cytec Ind. - CYT - close: 54.19 chg: +1.14 stop: 56.15

We did not see any news today to account for CYT's relative strength. The stock has broken out above short-term resistance at $54.00 and broken its four-week trendline of resistance. More conservative traders may want to tighten their stops. We are not suggesting new bearish positions at this time. 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: - 0.53
Earnings Date 04/17/08 (unconfirmed)
Average Daily Volume = 601 million

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MBIA Inc. - MBI - close: 14.13 change: -0.04 stop: n/a

There was no follow through rally for MBI but neither was there any profit taking. This is a bullish development for the stock. Volume came in very low, which suggest investors are still in a wait and see mode. 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: - 0.07
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 15.2 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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