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CALL Play Updates

Axsys Tech. - AXYS - close: 66.45 change: +1.40 stop: 61.83*new*

Yesterday we suggested buying a dip and today was another entry point. AXYS hit some profit taking this morning but traders stepped in to buy the dip near $62.50. The strong close near its highs is bullish for tomorrow. If the market is positive on Wednesday I think AXYS will do well. We are upping our stop loss to breakeven at $61.83. Our exit target is $69.50.

Picked on November 22 at $ 61.83
Change since picked:      + 4.62
Earnings Date           02/19/09 (unconfirmed)
Average Daily Volume =       195 thousand 


Entergy Corp. - ETR - close: 83.99 change: -0.96 stop: 79.65

I am on the edge about whether to keep ETR as a bullish candidate or not. Yesterday I said that if ETR didn't bounce we might drop it. Shares closed lower but they bounced from a dip near $82.00 and its 50-dma. Is this just another entry point? If we look at the intraday chart it almost appears like a short-term bull-flag pattern. We currently have a stop loss under round-number, psychological support near $80.00. More conservative traders may want to just exit early due to lack of follow through higher or raise your stop loss toward today's low around $82.00. We're going to keep it on the play list but I would hesitate to open new positions.

The P&F chart is bullish with a $104 target. We're setting two targets. Our first target to take profits is $92.50. Our secondary target is $97.50. Keep a wary eye on possible resistance at the 100-dma and exponential 200-dma overhead.

Picked on November 22 at $ 85.76
Change since picked:      - 1.77
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       2.3 million  


Sears Holding - SHLD - close: 33.39 change: -1.94 stop: 29.99*new*

Investors were quick to take profits in SHLD. The stock has been incredibly volatile with a rally from $30.00 to $36.22 yesterday and a drop back to $30.33 intraday on Tuesday. Today's afternoon bounce might be a new bullish entry point but you'd need to keep an aggressive stop under $30.00. We're inching up our stop loss to $29.99.

The stock hit our first target at $34.90 yesterday. We're currently aiming for $39.50.

Picked on November 22 at $ 31.58 /gap open higher/1st target hit
Change since picked:      + 1.81 /originally listed @ 30.44
Earnings Date           12/02/08 (confirmed)
Average Daily Volume =       2.2 million  


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

SPDR GOLD Trust - GLD - close: 80.87 change: -0.04 stop: n/a

Gold suffered some profit taking today even though the U.S. dollar continued to fall. The GLD hit $79.28 intraday before bouncing back to almost unchanged. Resistance at the 100-dma and exponential 200-dma remains directly overhead.

We are not suggesting new strangle positions at this time. Our remaining strangle involves December options.

What is a strangle?
A strangle involves buying both an out-of-the-money call and an out-of-the-money put. We don't care what direction the stock goes as long as it moves one direction. If the stock moves far enough one side of our trade will rise in value and pay for the entire trade and make a profit.

-December Strangle-

Summary:
We suggested readers buy the December $75 call (GVD-LW) and the December $70 puts (GVD-XR). Our estimated cost was $6.30. We want to sell if either option hits $12.00.

Picked on November 09 at $ 72.50
Change since picked:      + 8.37
Earnings Date           00/00/00
Average Daily Volume =      19.3 million  


Ultra S&P500 ProShares - SSO - close: 24.37 change: +0.72 stop: n/a

There are definitely a lot of opinions out there. Some are suggesting traders short the S&P here with a tight stop. Others are suggesting investors buy the market with both hands. This play is neutral. We really don't care what direction the market goes but we do need it to move!

We're not suggesting new positions at this time.

Note: The SSO is an ultra-long ETF that typically moves twice the daily performance of the S&P 500 index.

What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.

-December Strangle Details-
We suggested readers buy the December $30.00 call (SOJ-LD) and the December $20.00 put (SOJ-XT). Our estimated cost is $3.75. We want to sell if either option hits $6.00.

Picked on November 12 at $ 24.84
Change since picked:      - 0.47
Earnings Date           00/00/00
Average Daily Volume =       126 million  


CLOSED BULLISH PLAYS

Ball Corp. - BLL - close: 33.80 change: +1.33 stop: 29.75

Target achieved. BLL rallied over the $34.00 level this morning. The intraday high was $34.27. Our suggested exit to take profits was the $34.00-34.50 range. Our play is closed but we would keep BLL on the watch list. A breakout over the 50-dma or $35.00 might be an entry point for a new bullish run.

Chart:
BLL

Picked on November 22 at $ 30.73 /gap open higher
Change since picked:      + 3.07 /originally listed at 30.18
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       1.3 million  


Fluor Corp. - FLR - close: 39.07 change: +1.89 stop: 33.45

Target exceeded! FLR rallied to an intraday high of $40.78. Our secondary target to take profits and close this play was $39.50. FLR ended the day up 5% following yesterday's huge move. FLR has rallied from $29 to almost $41 in two days. It's probably time for a little correction. We'd keep it on our watch list.

Chart:
FLR

Picked on November 22 at $ 33.64 /gap open entry/ 1st target hit 11/24
Change since picked:      + 5.43 /originally listed at 31.90
Earnings Date           02/26/09 (unconfirmed)
Average Daily Volume =       5.7 million  


Research In Motion - RIMM - close: 41.50 change: -3.76 stop: 41.25

RIMM has been incredibly volatile. In three days the stock has moved from $41.50 to over $48.00 and back to $40.26. RIMM hit our first target to take profits yesterday at $48.00. Unfortunately, the stock hit our stop loss at $41.25 this morning. Evidently there were some negative analyst comments out today forecasting lower cell phone sales in 2009.

More aggressive traders might be tempted to buy today's bounce from $40.00 with a stop loss around $39.90 and a target at $47.00.

Chart:
RIMM

Picked on November 22 at $ 45.79 /gap higher entry/1st target hit
Change since picked:      - 0.53 /originally listed at $44.80
Earnings Date           12/18/08 (confirmed)
Average Daily Volume =      35.6 million  


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