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Play Updates

AMZN Hits 1st Target & More

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CALL Play Updates

Apple Inc. - AAPL - close: 95.90 change: +3.43 stop: 89.90 *new*

Wednesday ended up being a good day for AAPL and a good day for us. The stock gapped open lower at $89.40, which provided a much better entry point than yesterday's close of $92.47. Shares almost hit our stop loss at $88.45 but found some support near $88.80. AAPL immediately rallied. While shares did pull back intraday the afternoon market bounced lifted AAPL past short-term resistance at $95.00 to close up 3.7%.

Given our new entry point at $89.40, we've got a six-point gain in AAPL. I would strongly suggest readers take some profits here. You don't have to completely exit but book some gains and lighten up. The technical resistance at the 50-dma has fallen to $98.94. Thus we're adjusting our official exit point to $98.00, especially now given our adjusted entry point (89.40). Please note our new stop loss at $89.90.

Picked on December 02 at $ 89.40 *gap down entry point
Change since picked:      + 6.50 /originally listed at $92.47
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =        53 million  


Amazon.com - AMZN - close: 45.21 change: +4.02 stop: 39.90 *new*

Target exceeded. AMZN showed a lot of strength this morning. The stock tested round-number support at $40.00 again and when that didn't break AMZN shot higher and traded over $45.00. Our first target to take profits was the $44.50 mark. The afternoon dip slipped to back toward $43.00 but when stocks turned higher again in the last hour AMZN closed above round-number resistance at $45.00 for a 9.7% gain. We are raising our stop loss to $39.90. More conservative traders may want to use a tighter stop loss. We hope readers took some gains today. We still have an aggressive, secondary target at $48.50.

Chart:
AMZN

Picked on December 01 at $ 40.50 *triggered     
Change since picked:      + 4.71 /1st target hit 44.50 on 12/03
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =      12.7 million  


Apollo Group - APOL - close: 75.34 change: -0.34 stop: 70.95

APOL spent the day trading sideways in close to a $4.00 range. The trend of higher lows is still in place. More conservative traders might want to consider a tighter stop loss. Our target is the $79.75 mark. FYI: The Point & Figure chart is bullish with a $99 target.

Picked on December 01 at $ 73.00 *triggered     
Change since picked:      + 2.34
Earnings Date           01/06/09 (unconfirmed)
Average Daily Volume =       4.0 million  


Axsys Tech. - AXYS - close: 72.75 change: +5.32 stop: 65.95 *new*

It was a very strong day for AXYS. The stock gapped open lower at $66.59, providing us a better entry point and then suddenly shares just exploded higher. AXYS broke through very significant resistance at the $70.00 mark. The midday pull back saw the stock retest broken resistance as new support. Then shares rallied back to close at their highs with a 7.8% gain. Volume was about double the norm, which is bullish.

We currently have a target to exit at $74.85. We are adding a secondary target at $79.00. We still suggest readers take most of their position off the table at $74.85. The P&F chart is bullish with an $89 target and the inverse H&S pattern is suggesting a $90 target. Please note our new stop loss at $65.95.

Picked on December 02 at $ 66.59 /gap down entry 
Change since picked:      + 0.00 /originally listed at $67.43
Earnings Date           02/19/09 (unconfirmed)
Average Daily Volume =       246 thousand 


Costco Wholesale - COST - close: 51.42 change: +1.32 stop: 47.75

It was an eye-opening morning for COST. The stock gapped open lower at $48.93 providing a better entry point for us to open call positions. Shares hovered there for a moment, hit $48.73, and then rallied sharply higher over resistance at $52.00. The stock ended the session up 2.6%. We don't see any changes from our previous comments. Our first target is $54.85.

Picked on December 02 at $ 48.93 /gap down entry point
Change since picked:      + 0.00 /originally listed at $50.10
Earnings Date           12/11/08 (confirmed)
Average Daily Volume =       7.2 million  


Entergy Corp. - ETR - close: 83.86 change: +0.90 stop: 79.99

It has been tough waiting on ETR to finish digesting its breakout but shares are finally starting to move. The stock has found new support at its 50-dma the last few days, which is a positive development. Today's gain, while not big, also produced a bullish engulfing candlestick pattern. This looks like a new bullish entry point to buy calls on ETR.

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:      - 1.90
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       2.3 million  


Lockheed Martin - LMT - close: 76.91 change: +3.28 stop: 70.90

Wednesday was a strong day for LMT. The stock did see an intraday dip toward $72.00 but the rebound and the afternoon rally was strong. Volume came in above average, which is positive. Shares closed the day up 4.4%. A close above $75.00 is also a bullish development.

We have two targets. Our first target is $78.50. Our second target is $81.50.

Picked on December 01 at $ 73.50 *triggered     
Change since picked:      + 3.41
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       3.6 million  


XTO Energy - XTO - close: 35.61 change: +1.41 stop: 33.49

Oil prices continued to flutter and fade and that put downward pressure on the oil stocks. XTO managed to buck the trend and post a gain but only after retesting short-term support in the $34.00-33.50 zone. I am tempted to buy this bounce but readers may want to wait for a rise over $36.00 before initiating positions. We are listing two targets but strongly suggest that readers exit most of their position at our first target. The $40.00 level remains overhead resistance. Our first target is $39.85. Our second target is $43.50.

Picked on December 02 at $ 35.61
Change since picked:      + 0.00
Earnings Date           02/10/09 (unconfirmed)
Average Daily Volume =      13.3 million  


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

SPDR GOLD Trust - GLD - close: 76.18 change: -0.77 stop: n/a

The U.S. dollar posted another gain and this put pressure on gold prices. The GLD slipped about 1% and dipped toward round-number support near $75.00. We don't see any changes from our previous comments. We are not suggesting new strangle positions. December options expire in less than three weeks.

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:      + 3.68
Earnings Date           00/00/00
Average Daily Volume =      19.3 million  


Ultra S&P500 ProShares - SSO - close: 24.83 change: +1.28 stop: n/a

The S&P 500 index managed to close the day at its highs, which is bullish for tomorrow's open. If the index can breakout past resistance near 900 it would be very short-term bullish. The SSO delivered a 5.4% gain in response to the S&P 500's move. We're not suggesting new strangles at this time. December options have less than three weeks before they expire.

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:      - 0.01
Earnings Date           00/00/00
Average Daily Volume =       126 million  


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