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Call Updates

UltraShort Russell2000 - TWM - cls: 69.29 chg: -0.75 stop: 64.75

The Russell 2000 index dipped to the 700 level before rebounding higher. This sent the TWM to technical resistance at its exponential 200-dma and then it reversed. The action in the market today certainly looks like a short-term bullish bottom. However, it looked like a short-term bullish bottom yesterday and especially last Friday. At this point I would expect a bounce in the market but I wouldn't put a lot of confidence in it. The TWM could easily dip to $66 or $65 before reversing higher. We're not suggesting new positions at this time. 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: - 2.08
Earnings Date 00/00/00
Average Daily Volume = 7.4 million

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

Crude oil slipped closer to the $100 a barrel level and the USO inched closer to $80.00. Yet the low in the USO today was only $80.76. We don't see any changes from our previous comments. 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 $79.50-79.00. 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

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CBOE Volatility Index - VIX - close: 24.39 chg: -0.13 stop: n/a

The VIX spiked to 26.25 on the morning market weakness but reversed again. The volatility index is slowly making its way higher and it's doing it with a big step higher followed by a couple of steps back sort of pattern. We're not suggesting new positions at this time. 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: + 1.82
Earnings Date 00/00/00
Average Daily Volume = x million
 

Put Updates

Intuitive Surgical - ISRG - cls: 277.67 chg: +3.73 stop: 280.55

It's not looking good for our ISRG put play. The stock dipped to $264.33 and rebounded sharply. If the market can build on today's bounce, which I think it will for at least a day maybe two, then ISRG should break through resistance near $280 and its exponential 200-dma. More conservative traders will want to consider an early exit immediately. If ISRG surprises us with another failed rally under $280 we can use it as another entry point. 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: + 9.56
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 655 thousand

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Lamar Advertising - LAMR - cls: 37.30 chg: +0.83 stop: 38.01

LAMR dipped to $36.13 before bouncing. We were lucky that given the violent drop at the open in the major indices that LAMR didn't hit our trigger to open positions and then bounce. We're suggesting a trigger to buy puts at $35.90. If triggered our target is 31.50 mark. More aggressive traders could aim for a new relative low.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume = 1.4 million

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Roper Industries - ROP - cls: 58.04 chg: +0.90 stop: 60.05

We don't have anything new to report on for ROP. The stock followed the general market trend of down in the morning with a rebound back into the green. The overall trend remains bearish. Wait and watch for another failed rally in the $59.00-60.00 zone as a potential entry point to buy puts. 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: - 0.15
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 664 thousand

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Unibanco - UBB - close: 102.88 chg: -0.59 stop: 110.85 *new*

Weakness in financials pushed UBB to $97.49 this morning but the stock rebounded back above the $100 mark. Shares are short-term oversold and a bounce back to $110 or its 10-dma would not break the bearish pattern. We're not suggesting new positions at this time. We will adjust our stop loss to $110.85. UBB has already exceeded our first target at $100.50. 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: - 5.94
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Valero Energy - VLO - close: 33.03 chg: +2.13 stop: 32.01

The media is telling us that traders bought the refiners on the weakness in oil today. I don't think so. Oil has been slipping for weeks. What happened today was bulls trying to call a bottom after yesterday's test of the July lows. If VLO can breakout over resistance near $36.00 we'll consider switching to bullish strategies. Right now the stock should run into resistance and roll over in the $34.50-36.00 region. Nimble and more aggressive traders could try and look for that failed rally as an entry point but in this market that could be very tough to do. We suspect that VLO will actually breakdown and begin another leg lower. We're suggesting a trigger to buy puts at $28.99. If triggered we will have two targets. Our first target is $25.25. Our second target is $21.50.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/04/08 (unconfirmed)
Average Daily Volume = 11.7 million
 

Strangle Updates

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Dropped Calls

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Dropped Puts

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Dropped Strangles

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