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Call Updates

Apple Inc. - AAPL - close: 100.10 chg: - 9.02 stop: 97.45

Thursday turned out to be another ugly day on Wall Street. Once again tech stocks were some of the worst performers and AAPL helped lead the charge lower. Shares gave up more than 8% as AAPL plunged to psychological support at the $100 level. We were suggesting readers buy calls in the $102.50-100.00 zone so the play is now open. We are facing a risk that AAPL spikes under $100 tomorrow before rebounding. I'm expecting a rebound tomorrow if congress approves the bailout bill but the jobs number tomorrow morning could be bad enough to spark another morning sell-off. Readers may want to wait for a new bounce over $102.50 or $105.00 before initiating new call positions. We have two targets. Our first target is $112.00. Our second target is $118.50.

Picked on October 02 at $102.50
Change since picked: - 2.40
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume = 28.5 million

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JPMorgan Chase - JPM - close: 49.85 change: +0.60 stop: 44.45*new*

JPM continues to out perform the market. Traders bought the dip near $46.75 today and JPM bounced back toward resistance near $50.00. We are going to raise our stop loss significantly to $44.45 - as wide as that is it may still be too tight given the volatility in the financials. Our first target is $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: + 3.53
Earnings Date 10/15/08 (unconfirmed)
Average Daily Volume = 50.6 million

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Wells Fargo - WFC - close: 35.16 change: -1.54 stop: 32.95

WFC ran into some selling pressure today despite some positive analyst comments for the stock. This dip back to $35.00 can be used as a new bullish entry point although I want to point out that many of the technical indicators are turning negative. This is really a bet that WFC is one of the biggest banks that will survive this credit crisis and when this bailout package gets enacted the stock could see a huge move higher on the news. 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: - 2.37
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 54.5 million
 

Put Updates

Sears Holding - SHLD - cls: 87.61 chg: -1.43 stop: 95.15

SHLD continued to slip on Thursday but shares found some support at its 100-dma. We would still consider new put positions here or on a failed rally under $90.00 or the 200-dma near $92.90. The Point & Figure chart is bearish with a $77 target. The fourth quarter is shaping up to be a very bad quarter especially as consumer spending begins to slow. SHLD has showed some support at $85.00 in the past so don't be surprised to see an oversold bounce. We have two targets. Our first target is $81.00. Our second target is $76.00.

Picked on October 01 at $ 89.04
Change since picked: - 1.43
Earnings Date 11/28/08 (unconfirmed)
Average Daily Volume = 3.1 million

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Volatility Index - VIX - cls: 45.26 chg: + 5.45 stop: n/a

It is only natural to see the VIX spike the day ahead of what could be the second congressional vote on the bailout plan. Investors could also be nervous about the jobs report tomorrow. This rally over 45.00 looks like another bearish entry point to buy puts on the VIX. We would use the November strikes. 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: +14.96
Picked again Sept. 29 at = 46.72 second position
Changed since picked: -1.46
Earnings Date 00/00/00
Average Daily Volume = --- million

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Whirlpool - WHR - close: 76.38 change: -6.06 stop: 85.25

WHR almost hit our first target today. The low today was $75.33. The under current behind today's market weakness was concern over the economic slow down. This is exactly why we added WHR as a put play and the stock reacted sharply with a 7.3% decline. It's possible the stock could see an oversold bounce near $75.00 and its 100-dma but readers can use failed rallies near $80 or the 10-dma as new entry points for puts. 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: - 6.62
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 1.6 million
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

WYNN Resorts - WYNN - close: 73.84 chg: -6.35 stop: 82.65

Target achieved. It's hard to trade when stocks gap open several points. WYNN gapped open lower at $76.59 and then plunged to $70.25 intraday. Our suggested entry point was $77.49. We were expecting the move lower but not all in one day. Our target was the $70.50 mark. Keep an eye on WYNN for a "fill the gap" and failed rally type of move in the $79-80 zone, which may be a new entry point for puts again.

Picked on October 02 at $ 76.59 *triggered/gap down entry
Change since picked: - 2.75 *target hit $70.50
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume = 2.0 million
 

Dropped Strangles

None
 

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