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Call Updates

CurrencyShares Euro - FXE - cls: 158.45 chg: -0.84 stop: 156.75

A bounce in the U.S. dollar weighed on the EURO and the FXE slipped to $158.27 near its rising 10-dma. There is potential support near $158.00 and we have an alternative entry point listed to buy calls on the FXE at $158.00. Our first entry point is a breakout to new highs at $160.55. Our stop loss is at $156.75. If we get filled at $160.55 we'll adjust the stop higher. Our five-week target is $164.50. Our ten-week target is $169.50. We are suggesting the August and September calls however we would prefer the September options. The FXE doesn't move super fast. Strikes are available at $1.00 increments.

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 909 thousand

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CBOE Volatility Index - VIX - close: 25.10 chg: -3.44 stop:

The VIX plunged more than 12% following yesterday's spike above 30.00 that hit our first target. Some of the quote services are listing the intraday high for the VIX at 38.8 but it's a bad tick. We're not suggesting new positions and hope that readers took some money off the table yesterday. We do not have a stop loss listed but you may want to put a stop in under the 22 level. Our more aggressive, higher-risk target is the $34.00 level.

Picked on June 30 at $ 23.95 /1st target hit 29.50
Change since picked: + 1.15
Earnings Date 00/00/00
Average Daily Volume = n/a million
 

Put Updates

Apple Inc. - AAPL - close: 172.81 chg: +3.17 stop: 181.01

AAPL actually under performed the market. The S&P rallied 2.5%. The NASDAQ soared 3.1%. Yet AAPL only added 1.8%. That doesn't bode well and yet we probably wouldn't suggest new bearish plays until the current market bounces begins to fade. Our target is the $165.00 mark just above the simple 200-dma. If AAPL does trade lower we'll be considering bullish trading ideas in the $164-160 zone.

Picked on July 09 at $174.25
Change since picked: - 1.44
Earnings Date 07/21/08 (confirmed)
Average Daily Volume = 31.4 million

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iShares Rus.2000 - IWM - cls: 68.30 chg: +2.42 stop: 68.60

This put play on the IWM is pretty much dead. We fully expect the bounce to carry over into Thursday morning and the IWM should hit our stop loss at $68.60 closing the play.

Picked on July 14 at $ 66.16
Change since picked: + 2.14
Earnings Date 00/00/00
Average Daily Volume = 90 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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DIAMONDS - DIA - close: 112.17 chg: +2.87 stop: n/a

After a 2.7% gain the DIA is almost back to where we started. If
you wanted to open up new strangle positions this is the spot. The same play opened today would only cost $3.49. The options we suggested were the August $115 calls (DIA-HK) and the August $109 puts (DIA-TE). Our estimated cost is $4.35. We want to sell if either option hits $6.90 or more.

Picked on July 07 at $112.21
Change since picked: - 0.04
Earnings Date 00/00/00
Average Daily Volume = 15.5 million

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iShares Brazil - EWZ - cls: 83.35 chg: +0.89 stop: n/a

EWZ didn't actually move much but the "trend" today was relatively bullish. The EWZ is still struggling with its 200-dma. We are not suggesting new strangle positions. The options we suggested were the August $90 calls (EWZ-HR) and the August $75 puts (EWQ-TO). Our estimated cost is $3.95. We want to sell if either option hits $5.90.

Picked on July 03 at $ 83.06
Change since picked: + 0.29
Earnings Date 00/00/00
Average Daily Volume = 13.6 million

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FosterWheeler - FWLT - close: 59.59 chg: -1.65 stop: n/a

Oil and energy sector stocks were dragged down by the weakness in crude oil. FWLT was painted with the same brush and the stock lost 2.5%. The drop to $60.00 allowed another entry point to open strangles. The options we suggested were the August $70 calls (UFB-HN) and the August $50 puts (UFB-TJ). Our estimated cost was $2.60. We want to sell if either option hits $4.00.

Picked on July 15 at $ 61.24
Change since picked: - 1.65
Earnings Date 08/06/08 (unconfirmed)
Average Daily Volume = 2.5 million

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Corning Inc. - GLW - close: 20.06 chg: +0.23 stop: n/a

The bounce in GLW was a little anemic. Shares added 1% and just barely closed over the $20.00 level. Try and open strangle positions as close to $20.00 as possible but we would use the $20.10-19.90 zone. The options we suggested were the August $22.50 calls (GLW-HX) and the August $17.50 puts (GLW-TW). Our estimated cost is $0.75. We want to sell if either option hits $1.50. Try and keep your investment balanced on both sides of the trade.

Picked on July 10 at $ 20.16
Change since picked: - 0.10
Earnings Date 07/30/08 (confirmed)
Average Daily Volume = 15.9 million

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Garmin Ltd. - GRMN - close: 46.49 chg: +3.32 stop: n/a

GRMN is finally starting to move, +7.7% today, after some positive analyst comments. Unfortunately, it's probably too little too late. The options we listed were the July $50 calls (GQR-GJ) and the July $40 puts (GQR-SH). Our estimated cost was $2.55 and we have adjusted our exit to breakeven at $2.55.

Picked on June 15 at $ 44.911
Change since picked: + 1.58
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume = 4.1 million

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Internet Holders - HHH - cls: 51.08 change: +2.67 stop: n/a

The market's big bounce today was led by tech stocks. The Internet HOLDRs rose 5.5% and closed back above the $50 level and its 10-dma. We are not suggesting new positions. The options we suggested were the August $55 calls (HHH-HK) and the August $45 puts (HHH-TI). Our estimated cost is $1.65. We want to sell if either option hits $2.45.

Picked on July 03 at $ 50.500
Change since picked: + 0.58
Earnings Date 00/00/00
Average Daily Volume = 132 thousand

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iShares Rus.2000 - IWM - cls: 68.30 chg: +2.42 stop: n/a

The small caps rallied sharply and reversed the previous downdraft. One could argue the group has produced a short-term bullish double bottom pattern. We are not suggesting new strangle positions at this time. The options we suggested were the August $70 calls (DIW-HR) and the August $61 puts (DIW-TI). Our estimated cost is $1.84. We want to sell if either option hits $2.75. More aggressive traders may want to aim for more.

Picked on July 14 at $ 66.16
Change since picked: + 2.14
Earnings Date 00/00/00
Average Daily Volume = 90 million

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KLA-Tencor - KLAC - close: 38.99 chg: +0.49 stop: n/a

Time is almost up for this strangle on KLAC. We recently adjusted our exit targets. For strangle #1 we're moved the exit target from $3.00 to $2.25. For strangle #2 we're moved the target from $1.50 to $1.15. More conservative traders may want to move their targets to breakeven. We are not suggesting new positions at this time. We listed two different strangles on KLAC.

Suggested Options were:
KLAC Strangle #1) The options we listed were the July $42.50 calls (KCQ-GV) and the July $37.50 puts (KCQ-SU). Our estimated cost is $1.65 We want to sell if either option hits $2.25

KLAC Strangle #2) The options we listed were the July $45.00 calls (KCQ-GI) and the July $35.00 puts (KCQ-SG). Our estimated cost is $0.70. We want to sell if either option hits $1.15.

Picked on June 22 at $ 40.07
Change since picked: - 1.08
Earnings Date 07/24/08 (unconfirmed)
Average Daily Volume = 3.7 million

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MarketVectors Agribusiness- MOO - close: 56.65 chg: -0.40 stop: n/a

We're still not seeing any movement in the MOO. It continues to trade sideways and it bounced near technical support at its 200-dma again. We're not suggesting new positions at this time. The options we suggested were the August $62 calls (MYV-HJ) and the August $50 puts (MOO-TX). Our estimated cost is $2.10. We want to sell if either option hits $3.15.

Picked on July 03 at $ 57.25
Change since picked: - 0.60
Earnings Date 00/00/00
Average Daily Volume = 745 thousand

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PowerShares QQQ - QQQQ - cls: 45.34 chg: +1.10 stop: n/a

Tech stocks helped lead the rally today and the Qs surged almost 2.5%. The MACD on the daily chart is nearing a new buy signal. We're not suggesting new positions at this time. The options we suggested were the August $47 calls (QQQ-HU) and the August $43 puts (QQQ-TQ). Our estimated cost is $1.80. We want to sell if either option hits $2.75 or more.

Picked on July 07 at $ 44.90
Change since picked: + 0.44
Earnings Date 00/00/00
Average Daily Volume = 148 million

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Starbucks - SBUX - close: 14.34 change: +0.76 stop: n/a

SBUX produced a strong bounce from its trendline today. Shares ended up almost 5.6%. The options we suggested for the strangle were the August $14.00 calls (SQX-HK) and the August $13.00 puts (SQX-TJ). Our estimated cost was $1.38. We want to sell if either option hits $3.50 or more.

Picked on July 15 at $ 13.58
Change since picked: + 0.76
Earnings Date 07/30/08 (confirmed)
Average Daily Volume = 14 million

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UBS Ag - UBS - close: 19.83 change: +1.87 stop: 20.75

Financials stocks produced their best one-day move ever. Shares of UBS responded with a 10.4% gain and a break above its 10-dma. Yet shares remain under the $20.00 mark. We're not suggesting new positions at this time. We listed two different strangles.

UBS Strangle #1) This uses the August $22.50 calls (UBS-HX) and $17.50 puts (UBS-TW). Our estimated cost was $1.90. We want to sell if either option hits $3.00.

UBS Strangle #2) This uses the August $25.00 calls (UBS-HE) and $15.00 puts (UBS-TC). Our estimated cost was $0.90. We want to sell if either option hits $1.90.

Picked on July 13 at $19.49
Change since picked: + 0.34
Earnings Date 08/12/08 (unconfirmed)
Average Daily Volume: 7.3 million

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United States Oil - USO - cls: 109.25 chg: -3.14 stop: n/a

Oil and the USO have produced some big moves in the last couple of weeks but they weren't big enough and they weren't directional enough. We only have two days left before July options expire. We are not suggesting new positions at this time. We suggested two different strangles.

USO Strangle #1) The options we listed were the July $115 calls (IYS-GK) and the July $105 puts (IYS-SA). Our estimated cost is $7.10 We want to sell if either option hits $9.00.

USO Strangle #2) The options we listed were the July $120 calls (QSO-GP) and the July $100 puts (IYS-SV). Our estimated cost is $4.10. We want to sell if either option hits $4.10.

Picked on June 22 at $109.14
Change since picked: + 0.11
Earnings Date 00/00/00
Average Daily Volume = 12.5 million

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Ultra Financials - UYG - close: 17.30 chg: +2.55 stop: n/a

It was a stellar day for the UYG, which moves twice as far as the Dow Jones financial sector. The UYG soared more than 17% and rallied back to its simple 10-dma. The three-day move has created a bullish reversal candlestick pattern. We are no longer suggesting new strangle positions at this time. The options we suggested were the August $20.00 calls (UYG-HD) and the Augsut $11.00 puts (UUF-TM). Our estimated cost was $1.45. We want to sell if either option hits $3.50 or more.

Picked on July 15 at $ 14.75
Change since picked: + 2.55
Earnings Date 00/00/00
Average Daily Volume = 27.3 million

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FinancialSector SPDR - XLF - cls: 19.42 chg: +2.25 stop: n/a

The XLF erased two days of steep losses with today's 13% gain. Volume was very strong. The XLF, like the UYG, appears to have built a bullish three-day candlestick reversal pattern. If you wanted to consider new strangle positions this would be the spot to do it in the $19.50-19.00 zone. The options we ended up with given the Monday morning open on the XLF were the August $21 calls (XLF-HU) and the August $17 puts (XJZ-TQ). Our estimated cost was $1.22. We want to sell if either option hits $2.85.

Picked on July 14 at $ 19.12
Change since picked: - 0.30
Earnings Date 00/00/00
Average Daily Volume = 128 million
 

Dropped Calls

None
 

Dropped Puts

Amazon.com - AMZN - close: 71.84 chg: +4.81 stop: 72.65

AMZN hit our stop loss today. It proved to be a very strong day for AMZN. We can probably blame the shorts running for cover to account for today's 7.2% gain. The stock's rally back above $70.00 and its 10-dma is short-term bullish. The stock surged just enough to tag our stop loss at $72.65 and close the play.

Picked on July 10 at $ 69.75 *triggered
Change since picked: + 2.09
Earnings Date 07/23/08 (unconfirmed)
Average Daily Volume = 7.2 million
 

Dropped Strangles

Alpha Nat. Res. - ANR - close: 104.93 chg: +10.01 stop: n/a

All hail the trading gods! Pure luck has saved this strangle play from expiration. There was news this morning before the opening bell that Cleveland-Cliffs (CLF) and ANR would be merging together. The way it's structured looks like CLF is buying ANR. Shares of ANR gapped open at $117.93 and hit $119.30 before trimming its gains. This pushed the July $105 calls (ANR-GA) to gap open at $12.90 and trade to $15.20 before falling. We had an adjusted target to exit if either option hit $4.00 so the opening trade at $12.90 would have taken us out. The options we suggested were the July $105 calls (ANR-GA) and the July $85 puts (ANR-SQ). Our estimated cost was $9.40.

Picked on June 15 at $ 94.25
Change since picked: +10.68
Earnings Date 08/05/08 (unconfirmed)
Average Daily Volume = 3.7 million
 

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