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Call Updates

Apple Inc. - AAPL - close: 145.06 chg: +4.08 stop: 124.85

Shares of AAPL continued to surge on Wednesday. The company seemed to be getting more positive press about its iPhone business. The stock rallied 2.89% and broke out past resistance near $140. The intraday high was $145.74. Our target is the $148.00-150.00 zone. More conservative traders could start taking profits now! 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: +11.79
Earnings Date 04/23/08 (unconfirmed)
Average Daily Volume = 48.5 million

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DIAMONDS - DIA - close: 123.92 change: -1.21 stop: 120.75

Financials are big part of the market and the group got hammered today. This weighed on the DJIA and the DIA lost 0.9%. Overall we remain short-term bullish and would use this dip or a dip near $123.50 as a new entry point for bullish positions. We remain skeptical of whether or not the market can continue to rally past the end of the quarter. Our target is the $128.00-130.00 zone.

Picked on March 23 at $123.11
Change since picked: + 0.81
Earnings Date 00/00/00
Average Daily Volume = 19.1 million

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Essex Prop. Trust - ESS - cls: 112.07 chg: -4.32 stop: 109.90

The REIT stocks were probably unfairly sold today as investors reacted to the new home sales data. Most of the homebuilders witnessed a lot of profit taking but ESS is a completely different business model. The REITs, which had been looking relatively strong, definitely suffered profit taking today. ESS should have support near its 10-dma near $112 and stronger support near $110 and its 200-dma. Wait for a bounce before considering new bullish positions. 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: - 3.43
Earnings Date 05/05/08 (unconfirmed)
Average Daily Volume = 408 thousand

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FPL Group - FPL - close: 62.69 chg: +0.09 stop: 59.49

Believe it or not we are still sitting on the sidelines in FPL. The stock did spike higher and it did breakout over its 50-dma and 200-dma on an intraday basis. Yet the intraday high was only $63.54. Our suggested trigger to buy calls was at $63.55. It doesn't get any closer. FPL did have some news today. They announced plans to build a solar energy plant in California, which should be able to generate enough energy for 175,000 homes. We are maintaining a trigger to buy calls at $63.55. We're setting our first target in the $67.00-67.50 zone. This is not the most attractive risk/reward set up with a wide stop loss under Friday's low but if FPL can close above its 50-dma we'll tighten the stop. FYI: An alternative entry point would be another dip or bounce near $60.00.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/30/08 (unconfirmed)
Average Daily Volume = 2.6 million

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Fluor - FLR - close: 142.32 chg: +0.55 stop: 134.45

FLR continues to inch higher and is flirting with a breakout over its trendline of resistance. We are sticking to our plan. The P&F chart is already bullish with a $184 target. We need to see FLR breakout so we're suggesting a trigger to buy calls at $146.50. The biggest challenge is controlling our risk. The stock can see huge intraday swings, which makes this a more aggressive trade. We're going to try and play it with a stop at $134.45. That might be too tight. We're setting two targets. Our first target is the $159.00-160.00 zone. Our second target is the $168.00-170.00 zone. We do not want to hold over earnings in early May.

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/07/08 (unconfirmed)
Average Daily Volume = 2.3 million

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Reynolds American - RAI - close: 60.85 chg: -0.47 stop: 59.65

RAI tested short-term resistance at its descending 10-dma. Traders continue to buy the dip and did so at $60.54. We remain bullish with RAI above $60.00. We're suggesting a stop loss under the recent low. There is a lot of congestion in the $64 region but our target is the $65.50-66.00 zone. We do not want to hold over the late April earnings. FYI: The P&F chart is bearish and points lower.

Picked on March 25 at $ 61.32
Change since picked: - 0.47
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 1.6 million

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Intuitive Surgical - ISRG - cls: 323.97 chg: - 1.96 stop: 278.00

ISRG is holding up pretty well. Today's $2 dip suggest there appears to be an absence of sellers. We remain bullish here but we're not suggesting new positions. 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: +23.28
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Ambac Fincl. - ABK - cls: 6.38 change: -0.32 stop: n/a

ABK is just bouncing sideways, up 4% one day and down 4% the next. The company's chairman and CEO was supposed to present at the Bank of America 2008 Smid Cap Conference on March 26th but we didn't hear any specific news come out of the conference. 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: - 5.16
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume = 10.9 million

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Cytec Ind. - CYT - close: 54.02 chg: -0.17 stop: 56.15

The general trend in CYT is still down but short-term the stock looks like it wants to bounce higher. 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: - 0.70
Earnings Date 04/17/08 (unconfirmed)
Average Daily Volume = 601 million

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MBIA Inc. - MBI - close: 13.24 change: -0.89 stop: n/a

Weakness in financials pulled MBI to a 6% loss. 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: - 0.96
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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