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Call Updates

CBOE Volatility Index - VIX - close: 25.47 chg: +2.83 stop: n/a

It was a big day for the VIX. The volatility index or fear index rose 12% and closed at new six-week highs. The lack of a sustainable rally following the FRE/FNM news over the weekend really has investors concerned and it's starting to turn into fear. The VIX looks like it's on a collision course with our target at $29.76. Readers might want to consider scaling out of positions in the 28-29 region.

Picked on August 03 at $ 22.57
Change since picked: + 2.90
Earnings Date 00/00/00
Average Daily Volume = x million

Put Updates

Air Products - APD - cls: 84.55 change: -2.78 stop: 88.05 *new*

APD plunged another 3% and closed under round-number support at $85.00. Our target is the $84.00 level and APD looks like it will hit our secondary target tomorrow morning. We are adjusting our stop loss to $88.05. The stock has already exceeded our first target at $87.00. More aggressive traders may want to let it ride and aim for the $81-80 zone as their exit.

Picked on August 31 at $ 91.85 *target hit 87.00 on 09/04/08
Change since picked: - 7.30
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume = 1.8 million


Roper Industries - ROP - cls: 57.35 chg: -0.69 stop: 60.05

The early morning rally attempt in ROP failed at $59.35. This looks like another bearish entry point to buy puts. More conservative traders might consider stops above today's high. Our target is $54.25. FYI: The Point & Figure chart is bearish with a $45 target but the P&F chart also shows some support near $53.00.

Picked on September 03 at $ 58.19
Change since picked: - 0.84
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 664 thousand


Unibanco - UBB - close: 101.75 chg: -7.82 stop: 113.65 *new*

Financial stocks reversed sharply lower on Tuesday and UBB was not an exception. After yesterday's failed rally near $115 the stock plunged more than 7% toward the $100 area. We are adjusting our stop loss toward the 10-dma at $113.65. More conservative traders might want to tighten their stop toward the $110 area. We have two targets. Our first target is $100.50. Our second target is $92.50. The Point & Figure chart has produced a brand new triple-bottom breakdown sell signal with a $92.00 target - a target that will probably move lower. The stock can be volatile so readers should consider this a higher-risk play.

Picked on September 04 at $108.82
Change since picked: - 7.07
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume = 1.5 million

Strangle Updates


Dropped Calls

Freeport-McMoran - FCX - cls: 72.06 change: -1.85 stop: 69.19

Commodity stocks continued to plunge on Tuesday even as the rally in the U.S. dollar stalled. Word on the street was that investors and probably a few hedge funds were facing margin calls that were exacerbating the selling pressure. Shares of FCX broke down under support near $70.00 and hit our stop loss at $69.19 before closing at a new 18-month low.

Picked on September 06 at $ 73.91 /stopped out 69.19
Change since picked: - 1.85
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 11.2 million


Jones Lang - JLL - close: 47.50 chg: -4.52 stop: 49.95

Financial stocks reversed hard on Tuesday. JLL lost 8.6% and broke down under short-term support near $50.00. We recently raised our stop loss to $49.95 to reduce our risk. If JLL breaks down under $46 or $45 readers might want to consider bearish positions.

Picked on September 06 at $ 50.98 /stopped out 49.95
Change since picked: - 3.48
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume = 705 thousand


Kohls - KSS - close: 52.58 change: -1.28 stop: 49.15

Target achieved. KSS rallied to $55.03 this morning. Our first target was $55.00. The market turned sour and KSS eventually gave up its gains to close down 2.3%. Readers will want to keep an eye on KSS. A dip near $50.00 or its 20-dma might be a new bullish entry point.

Picked on September 06 at $ 51.04 /target hit 55.00
Change since picked: + 1.54
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume = 7.6 million

Dropped Puts

Jacobs Engineering - JEC - cls: 56.44 chg: -5.47 stop: 68.55

Target exceeded - both of them! The market weakness is picking up speed and shares of JEC are just getting crushed. The stock lost another 8.8% and dipped to an intraday low of $56.44. Our target was $60.50. We also had a secondary target of $56.50. It's time to take profits if you have not already.

Picked on September 04 at $ 66.90 / both targets exceeded
Change since picked: -10.46
Earnings Date 11/05/08 (unconfirmed)
Average Daily Volume = 1.6 million


Millicom Intl. - MICC - cls: 71.99 chg: -3.29 stop: 80.51

Target exceeded. MICC gapped open lower at $74.32 and plunged to $71.86 late in the day. The stock might have support in the $70.80-70.00 zone near its July lows. Don't be surprised to see a bounce near $70. Our secondary target was $72.50.

Picked on August 28 at $ 78.58 *1st target hit 09/03/08
Change since picked: - 6.59
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 1.0 million

Dropped Strangles

Lehman Brothers - LEH - close: 7.79 chg: -6.36 stop: n/a

Look out below! Shares of LEH went into freefall today losing almost 45% of their value. LEH's options for raising capital to shore up its balance sheet are quickly evaporating. Pushing the stock over the edge today could have been the news that Standard & Poor's rating agency put LEH's long-term and short-term credit ratings on creditwatch with negative implications. The September $10 put spiked to $3.65. It was our plan to exit at $3.50 or higher. The options we suggested were the September $24.00 calls (LYH-IR) and the September $10.00 puts (LYH-UB). Our estimated cost is $2.15.

Picked on July 27 at $ 17.05 (strangle exit: +62%)
Change since picked: - 9.26
Earnings Date 09/18/08 (unconfirmed)
Average Daily Volume = 63 million

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