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Call Updates

Carbo Ceramics - CRR - close: 48.52 change: -1.00 stop: 46.45

CRR spent the session in a relatively tight range. Overall the very short-term trend is still down following Wednesday's failed rally above $50.00 and CRR is still facing a potential double top pattern, which would be bearish. We are not suggesting new bullish positions at this time. If CRR closes under its 10-dma around $48.50 we might exit early. We're aiming for the $52.00-52.50 zone.

Picked on May 11 at $ 47.45
Change since picked: + 2.07
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 303 thousand

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Fortune Brands - FO - close: 70.35 change: +0.17 stop: 69.45

FO spent the day in a tight 83-cent trading range. Overall we don't see any changes from our previous comments. A rebound from the $70.00 level, like today, can be used as a new bullish entry point but readers may want to stay defensive given the market's volatility this week. Conservative traders might want to tighten their stops further. 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: + 0.13
Earnings Date 04/24/08 (confirmed)
Average Daily Volume = 971 thousand

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Harsco - HSC - close: 62.27 change: +0.41 stop: 59.85

If you're the optimistic type then today's session was positive for HSC. There was no follow through on yesterday's weakness. However, we would still expect a dip toward the $61.00 level and probably the $60 region but a bounce from either level could be used as a new entry point. 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: + 1.48
Earnings Date 04/22/08 (confirmed)
Average Daily Volume = 613 thousand

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IHOP Corp. - IHP - close: 47.15 change: -1.08 stop: 49.49

IHP continues to under perform. We didn't see anything specific in the news to account for this relative weakness. If we don't see a bounce tomorrow from the 100-dma we'll drop IHP as a potential bullish play. Right now we're waiting for a breakout over resistance. Our plan is to buy calls if IHP trades at $53.75. Traders might want to switch directions and buy puts if IHP breaks under the $45.00 level. If triggered at 53.75 our target is the $59.50-60.00 zone. The P&F chart is bullish with a $68 target. FYI: The most recent data listed short interest at more than 26% of the very small 14.8 million-share float. That's about two weeks worth of short interest so if IHP breaks out it could see a huge squeeze. Note: we have to label this a more aggressive play because the option spreads are so wide.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/08 (unconfirmed)
Average Daily Volume = 326 thousand

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iShares Russ.2000 - IWM - cls: 73.15 chg: +0.50 stop: 71.45

The small caps out performed the S&P 500 today. This equates to a 0.6% gain for the IWM. The trend is still bullish but we're not suggesting new positions at this time. 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: + 0.60
Earnings Date 00/00/00
Average Daily Volume = 84.6 million

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Lufkin Industries - LUFK - cls: 80.87 chg: +0.91 stop: 77.85

LUFK is still trying to rally. The stock added more than 1% today, which was enough to land it back above the $80.00 level. It might be a stretch of the imagination but LUFK might be forming a bull flag pattern. We would still look for entry points in the $80-78 zone. 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: - 0.63
Earnings Date 07/17/08 (unconfirmed)
Average Daily Volume = 209 thousand

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Reliance Steel - RS - close: 66.97 chg: +0.69 stop: 59.99

RS is still consolidating sideways. We may have to change our entry strategy on this stock. For now we're still waiting for a dip. 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: 43.99 chg: +0.11 stop: 49.01

There is nothing new to report on here. APOL is still drifting lower. Today's bounce was nominal. More conservative traders may want to tighten their stops. Our target is the $40.50-40.00 zone.

Picked on May 18 at $ 46.71
Change since picked: - 2.83
Earnings Date 06/26/08 (unconfirmed)
Average Daily Volume = 5.4 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: 58.53 chg: -0.25 stop: n/a

MCD continues to sink. We are not suggesting new strangle plays at this time. 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: - 2.00
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume = 7.5 million
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

None
 

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