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Call Updates

None
 

Put Updates

ITT Educational Servc - ESI - cls: 68.73 chg: -3.26 stop: 75.05*new*

Another market sell-off pushes ESI to a 4.5% decline and its first close under $70.00 since May 2008. We are adjusting our stop loss to $75.05. More conservative traders may want to use a tighter stop loss. We are not suggesting new positions at this time. The market is so oversold it is rife for a relief rally. ESI has already hit our target at $67.50. Our secondary target is $61.00 but that might be overly aggressive on a short-term time frame.

Picked on October 06 at $ 73.30 *triggered/gap down
Change since picked: - 4.57 /1st target hit 67.50
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 957 thousand

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Hasbro Inc. - HAS - close: 30.15 change: -1.21 stop: 33.85 *new*

HAS continues to sink with another failed rally under its 200-dma near the $32 level. We are adjusting our stop loss to $33.85 around its 10-dma. More conservative traders may want to use a tighter stop since we are worried about an oversold rebound rally. Our target is the $27.65 mark. Don't be surprised to see a temporary bounce near $30.00. More aggressive traders may want to aim lower but we don't want to hold over the late October earnings report. FYI: The P&F chart is bearish with a $24 target.

Picked on October 06 at $ 32.25 *triggered 10/06/08
Change since picked: - 1.74
Earnings Date 10/20/08 (unconfirmed)
Average Daily Volume = 2.1 million

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Sears Holding - SHLD - cls: 78.79 chg: -6.95 stop: 89.05 *new*

Target achieved. Both SHLD and JCP were hammered for 7% declines on Tuesday. SHLD almost lost 8%. The stock plunged through the $80.00 level and yet volume was only half the norm. This doesn't look like capitulation in SHLD. Our first target was the $81.00 mark. Traders should have taken some money off the table if not all of their position. We're adjusting our stop loss to $89.05. We're not suggesting new positions at this time. More conservative traders, if you haven't exited yet, may want to use a tighter stop loss. Our second target is $76.00. The Point & Figure chart is bearish with a $77 target.

Picked on October 01 at $ 89.04 /1st target hit 81.00
Change since picked: -10.25
Earnings Date 11/28/08 (unconfirmed)
Average Daily Volume = 3.1 million

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Volatility Index - VIX - cls: 53.68 chg: + 1.63 stop: n/a

The markets plunged another 5% and the VIX closed at another record high. We don't see any changes from our previous comments.
Seeing the VIX this high is an extremely rare event and levels this high should be predicting some sort of market bottom soon. The challenge is how to define "soon". Aggressive traders could buy the October or November 40 puts. Our September 16th put 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: +23.38
Picked again Sept. 29 at = 46.72 second position
Changed since picked: + 6.96
Earnings Date 00/00/00
Average Daily Volume = --- million
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

None
 

Dropped Strangles

Financial Sector SPDR - XLF - cls: 15.92 chg: -1.88 stop: n/a

Target achieved. The financial sector continues to collapse as investors have no confidence in a solution for unfreezing the credit crisis. The XLF crashed through the bottom of its trading range and sank to new lows. This move lower in the XLF pushed the October $18.00 put (XLF-VR) to an intraday high of $2.54. Our suggested target to exit was $2.25. The options in our play were the October $22.00 call (XLF-JV) and the October $18.00 put (XLF-VR). Our estimated cost was $1.54. The hypothetical gain was +46% at $2.25.

Picked on October 02 at $ 19.64
Change since picked: - 3.72
Earnings Date 00/00/00
Average Daily Volume = 222 million
 

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