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Call Updates

Alliant Techsystems - ATK - cls: 110.57 chg: -1.80 stop: 109.45

Tuesday's market pull back sent ATK back toward support near $110 but traders bought the dip near support. This looks like another entry point to buy calls but if you're feeling cautious more conservative traders could tighten their stops. Our target is the $118.00-120.00 range. The Point & Figure chart is bullish with a $145 target.

Picked on May 19 at $112.80 *triggered
Change since picked: - 2.23
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume = 234 thousand

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Carbo Ceramics - CRR - close: 49.36 change: -0.05 stop: 45.95

We were pleasantly surprised by the relative strength in shares of CRR today. After yesterday's failed rally near $50.00 CRR was poised for a correction. We're not suggesting new positions at this time. We're aiming for the $52.00-52.50 zone.

Picked on May 11 at $ 47.45
Change since picked: + 1.91
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 303 thousand

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Fortune Brands - FO - close: 71.03 change: -0.48 stop: 69.45

FO also displayed some relative strength with a 0.6% loss compared to larger losses in the S&P 500 and the DJIA. At this time I would expect a dip back toward support near $70.00. Our target is the $74.00-75.00 range. The 200-dma is technical resistance near $74.50. The P&F chart is bullish with a $95 target.

Picked on May 07 at $ 70.05 *triggered
Change since picked: + 0.98
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 971 thousand

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Harsco - HSC - close: 62.94 change: +0.12 stop: 59.85

HSC displayed some strength today. Bulls bought the dip at $62.00 and shares look poised to move higher. We're not suggesting new positions at this time. Our target is the $64.50-65.00 range but more aggressive traders may want to aim higher.

Picked on May 01 at $ 60.38
Change since picked: + 2.56
Earnings Date 04/22/08 (confirmed)
Average Daily Volume = 613 thousand

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Intl.Bus.Mach. - IBM - cls: 125.18 chg: -1.31 stop: 123.49

Big blue under performed today. Broken resistance at $125.00 should have been support. It didn't hold. IBM dipped to $124.45 before investors started defending it. Shares could fall toward $122ish and still be inside its bullish channel. A bounce back over $125.00 can be used as a new bullish entry point but consider a tighter stop under today's low or near $124 as a potential stop. Our target is the $129.50 mark.

Picked on April 30 at $120.75 */1st target achieved 124.90
Change since picked: + 4.43
Earnings Date 04/16/08 (confirmed)
Average Daily Volume = 8.8 million

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iShares Russ.2000 - IWM - cls: 73.70 chg: -0.27 stop: 71.45

The small caps were rebounding this afternoon and the IWM looks a lot better than some of the other indices. We're not suggesting new positions at this time. More conservative traders might want to use a stop under today's low (72.80). Our multi-week target is the $77.50-80.00 zone. The P&F chart is bullish with an $87 target.

Picked on April 28 at $ 72.55 *triggered
Change since picked: + 1.15
Earnings Date 00/00/00
Average Daily Volume = 84.6 million

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Joy Global - JOYG - close: 80.16 chg: +0.44 stop: 76.90

JOYG bounced from its intraday low of $77.61 and powered back above the $80 level by session's end. The move is certainly encouraging and keeps the bullish trend alive. We had been warning readers that the stock might dip to $77.50. More conservative traders could ratchet up their stops toward $77.50. We continue to recommend that readers take profits in their bullish positions. Our secondary, more aggressive target is the $84.00-85.00 range. We will plan to exit ahead of the May 29th earnings report. The P&F chart is already bullish with an $88 target.

Picked on April 16 at $ 72.55 */ fist target exceeded
Change since picked: + 7.61
Earnings Date 05/29/08 (confirmed)
Average Daily Volume = 2.3 million

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Lufkin Industries - LUFK - cls: 80.98 chg: -0.74 stop: 77.85

LUFK did not escape the profit taking and it may not be over yet. The trend is still bullish but look for dips near the 10-dma as a potential entry point. We had been suggesting a pull back into the $80-78 zone as a potential entry and we got one today. The short-term target is $84.75-85.00. The P&F chart is bullish with an $87 target.

Picked on May 18 at $ 80.59
Change since picked: + 0.39
Earnings Date 07/17/08 (unconfirmed)
Average Daily Volume = 209 thousand

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Reliance Steel - RS - close: 67.37 chg: +0.52 stop: 59.99

I'm starting to wonder if we are going to get a chance to buy a dip in RS. The stock fell to $65.10 this morning and bulls rushed in to buy the pull back near RS' rising 10-dma. Today's bounce may prove to be a new entry point for bullish positions but we're going to stick to our plan for now. Our suggested entry point is a pull back into the $64.75-64.00 zone. If triggered we're setting two targets. Our first target is the $69.50-70.00 range. Our secondary, more aggressive target is the $73.00-75.00 range. The P&F chart is bullish with a $73 target.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/17/08 (confirmed)
Average Daily Volume = 851 thousand
 

Put Updates

Apollo Group - APOL - close: 45.39 chg: -0.10 stop: 50.05

The closing numbers in APOL do not tell the whole story. A BAC analyst downgraded four education stocks today and the whole group plunged this morning. APOL slipped to $42.80 before bouncing back. Yet the rebound failed to make it past what appears to be resistance near $46.00. We remain bearish but we're not suggesting new positions at this time. Our target is the $40.50-40.00 zone.

Picked on May 18 at $ 46.71
Change since picked: - 1.32
Earnings Date 06/26/08 (unconfirmed)
Average Daily Volume = 5.4 million

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United States Oil Fund - USO - cls: 104.30 chg: +1.50 stop: 105.55*new*

It looks like another day of short covering sent crude oil to another new high and the USO gapped open higher at $103.91 and hit $104.62 at its best levels. We still suspect some profit taking in crude oil to occur this week. The question is how much risk are you willing to take. We are actually going to widen our stop loss to $105.55 just to give the USO a little bit more room to maneuver. More conservative traders may want to keep a tight stop but remember this is a high-risk, speculative put play. Right now our target is the $96.50 mark.

Picked on May 19 at $102.80
Change since picked: + 1.50
Earnings Date 00/00/00
Average Daily Volume = 7.8 million
 

Strangle Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

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McDonald's - MCD - close: 59.68 chg: -0.77 stop: n/a

MCD appears to be breaking down from its sideways consolidation even though the stock had its price target raised to $67 this morning. We don't see any changes from our previous comments. The options we suggested were the June $62.50 calls (MCD-FZ) and the June $57.50 puts (MCD-RY). Our estimated cost was $1.10. We want to sell if either option hits $1.65 or higher.

Picked on May 18 at $ 60.53
Change since picked: - 0.85
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume = 7.5 million
 

Dropped Calls

China Telecom - CHA - cls: 67.75 chg: -2.92 stop: 69.49

A sharp sell-off in the Chinese stock market (-4.4%) led shares of CHA to a 4.1% decline and a breakdown from its bullish pattern. The stock gapped open lower here in the U.S. at $69.25, which was under our stop loss at $69.49. The play is closed.

Picked on May 18 at $ 72.35 *stopped out 69.49
Change since picked: - 4.60
Earnings Date 08/18/08 (unconfirmed)
Average Daily Volume = 404 thousand
 

Dropped Puts

None
 

Dropped Strangles

None
 

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