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Call Updates

Apple Inc. - AAPL - close: 109.12 chg: - 4.54 stop: 97.45

As the credit markets remain frozen the tech sector seemed to suffer more than financials and industrials. The NASDAQ Composite lost just over 1% on Wednesday. AAPL under performed with a 3.99% drop. Shares of AAPL look like they're shaping up for another dip toward support near $100.00. Our plan is to buy a dip in the $102.50-100.00 zone with the $100.00 level acting as psychological support. If triggered at $102.50 we have two targets. Our first target is $112.00. Our second target is $118.50.

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume = 28.5 million

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JPMorgan Chase - JPM - close: 49.63 change: +2.93 stop: 39.95

Those banks that appear the healthiest are starting to pick up momentum. JPM rallied more than 6% and tagged a new 52-week high at $50.00 today. We don't see any changes from our previous comments but readers might want to wait for a dip before opening new bullish positions. Don't forget this could be a bumpy ride in the financials but JPM should benefit following the approval of the government's bailout plan. We're going to set our first target at $53.00 and suggest readers exit 50% to 75% of their position at $53. Our secondary target is $57.50.

Picked on September 30 at $ 46.70
Change since picked: + 2.93
Earnings Date 10/15/08 (unconfirmed)
Average Daily Volume = 50.6 million

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Wells Fargo - WFC - close: 36.70 change: -0.83 stop: 32.95

WFC actually under performed its peers in the banking system today. The BKX index was up 6.9% and the BIX ended up 2.9%. WFC actually lost 2.2%. We remain bullish on WFC and would still consider buying dips near $35.00 but we're starting to wonder if USB might be a better choice for a bullish position. Our first target is the $42.50 mark and suggest readers sell 50% to 75% of their position there. Our secondary target is $47.50.

Picked on September 30 at $ 37.53
Change since picked: - 0.83
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 54.5 million
 

Put Updates

Volatility Index - VIX - cls: 39.81 chg: + 0.42 stop: n/a

There was huge expectation on Monday that congress would pass the bailout plan. Now there is a stronger expectation that it will pass a second time before the week ends. Yet there is a nagging sense of doubt and that helps the VIX hover at these elevated levels. No one wants to get burned twice after seeing the carnage on Monday. Our September 16th position (suggested entry at 30.30) has a 25.50 target. The September 29th position (suggested entry at 46.72) has two targets at 36.00 and 31.00.

Picked on September 16 at = 30.30 first position
Change since picked: + 9.51
Picked again Sept. 29 at = 46.72 second position
Changed since picked: -6.91
Earnings Date 00/00/00
Average Daily Volume = --- million

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Whirlpool - WHR - close: 82.44 change: +3.15 stop: 85.25

WHR almost erased yesterday's losses with a 3.9% gain today. We didn't see anything specific to account for the strength but we think it's misplaced. The government's rescue plan will not solve the economic slowdown, which will impact WHR's sales for months to come. Of course with the credit markets frozen the rescue plan might help consumers buy more big-ticket items short-term. One of our suggested entry points was a bounce into the $83.00-84.00 zone. WHR hit $83.05 today so the play is open. Our stop loss is at $85.25 although more conservative traders may want to put their stop above $86.00. We're setting two targets at $75.25 and another one at $70.25. More aggressive traders may want to aim lower. The P&F chart points to a $64 target.

Picked on October 01 at $ 83.00 *triggered 10/01
Change since picked: - 0.56
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 1.6 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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