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Call Updates

UltraShort Russell2000 - TWM - cls: 70.04 chg: -1.33 stop: 64.75

The markets got a bounce today but the bounce was fading lower into the closing bell. We see this dip in the TWM as another bullish entry point to buy calls. If you think the market bounce is not over yet then wait for the TWM to dip toward $68.00 before considering new positions. We have two targets. Our first target is $77.50. Our second target is $82.50.

Picked on September 09 at $ 71.37
Change since picked: - 1.33
Earnings Date 00/00/00
Average Daily Volume = 7.4 million


United States Oil - USO - cls: 82.97 chg: -0.62 stop: 77.45

News that OPEC was "trimming" their output lead to a morning pop in crude oil prices but the rebound eventually failed. Shares of USO gapped open and hit $84.68 before paring its gains. We are waiting for a pull back toward $80.00. We are suggesting that readers use a trigger to buy calls in the $80.50-80.00 zone. If you're feeling really nimble you could wait and try to jump in near $79.00. We're suggesting a stop loss at $77.45 but more conservative traders might want to inch theirs higher around $78.00. If we are triggered at $80.50 we have two targets. Our first target is $84.75. Our second target is $87.50.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 13.8 million


CBOE Volatility Index - VIX - close: 24.52 chg: -0.95 stop: n/a

After a big down day yesterday the market bounced and that took a little air out of the rally in the VIX. The trend remains up for the volatility index. Our target is the $29.75 mark. Readers might want to consider scaling out of positions in the 28-29 region.

Picked on August 03 at $ 22.57
Change since picked: + 1.95
Earnings Date 00/00/00
Average Daily Volume = x million

Put Updates

Intuitive Surgical - ISRG - cls: 273.94 chg: +5.83 stop: 280.55

ISRG produced a bounce today but the rebound struggled again under $280 and its exponential 200-dma. The stock actually produced a new lower high on a short-term basis. This looks like another entry point to buy puts. Right now we're only listing one target at $251.00. More aggressive traders might want to consider aiming for the January 2008 lows near $225 but keep in mind the $250 level could be strong support. This should be considered a higher-risk play because the stock price can be so volatile and the options can have wide spreads.

Picked on September 09 at $268.11
Change since picked: + 5.83
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 655 thousand


Roper Industries - ROP - cls: 57.14 chg: -0.21 stop: 60.05

The bounce in ROP continues to struggle and shares are building a short-term pattern of lower highs, which compliments the intermediate pattern of lower highs. We would still consider new bearish entry points here. More conservative traders might consider stops above Tuesday'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: - 1.05
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 664 thousand


Unibanco - UBB - close: 103.47 chg: +1.72 stop: 112.45 *new*

Target achieved. Weakness in financials contributed to UBB's fall to an intraday low of $99.06. Our first target was $100.50. The sharp rebound produced what might be considered a bullish hammer candlestick and a potential reversal signal. We're not suggesting new bearish positions and we're adjusting the stop loss to $112.55, which is just above the 10-dma. More conservative traders might want to tighten their stops toward $110 instead. Our second target is $92.50. The Point & Figure chart has produced a brand new triple-bottom breakdown sell signal and the bearish target has dropped from $92 to $84. The stock can be volatile so readers should consider this a higher-risk play.

Picked on September 04 at $108.82 /1st target hit 9/10/08
Change since picked: - 5.35
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume = 1.5 million

Strangle Updates


Dropped Calls


Dropped Puts

Air Products - APD - cls: 85.16 change: +0.61 stop: 88.05

Target achieved. Actually APD hit our second target today at $84.00 when shares dipped to $83.87. Shares had hit our first target at $87.00 back on September 4th. The play is closed for us but we would keep an eye on APD. Another failed rally under its 10-dma might be another bearish entry point.

Picked on August 31 at $ 91.85 *2nd target hit 84.00
Change since picked: - 6.69
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume = 1.8 million

Dropped Strangles


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