Option Investor
Play Updates

Two Plays Triggered, Five Plays Closed

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CALL Play Updates

Alcon Inc - ACL - close: 86.44 change: -1.63 stop: varies

Our new call play on ACL has been triggered. Shares dipped to $84.38 intraday. We had a suggested entry point at $85.25 and a stop loss at $83.45. Traders decided to buy the dip near ACL's 40-dma and the late day bounce looks like a new bullish entry point.

There is potential resistance at the 50-dma and at the $100.00 level. The Point & Figure chart is bullish with a $110 target. Our target is $99.00.

Chart:
ACL

Picked on December 22 at $ 85.25 *triggered     
Change since picked:      + 1.19
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       840 thousand 


Caterpillar - CAT - close: 41.78 change: -0.91 stop: 39.95

CAT made headlines today. It looks like the company is slashing salaries almost across the board and instituting a hiring freeze to deal with these tough economic times. The news didn't help the stock much. Shares dipped to $40.82 before bouncing late in the day. We're starting to see a little bearish curve to some of the short-term momentum indicators. I suggest readers wait for a new move over $43.50 or looks for a clean bounce from the $40.00 level before initiating positions.

Our target is $49.50. The Point & Figure chart is bullish with a $58 target.

Picked on December 16 at $ 43.80
Change since picked:      - 2.02
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =      13.4 million  


Express Scripts - ESRX - close: 59.89 change: -1.46 stop: 57.95

ESRX temporarily dipped under its simple 10-dma this afternoon. The stock managed to recover but its failure to build on Friday's bounce is worrisome. Readers could buy this afternoon bounce but you may want to use a stop loss closer to $58.50 near today's low. The stock is still struggling with resistance near $62.00. Our target is $64.00.

Picked on December 06 at $ 59.36 /gap higher entry 
Change since picked:      + 0.53 /originally listed at $58.58
Earnings Date           02/19/09 (unconfirmed)
Average Daily Volume =       3.1 million  


Goldman Sachs - GS - close: 77.00 change: -3.73 stop: 77.95

GS pulled back from the $80 level to trade just under $75.00 and bounce sharply. This late day rebound actually looks like a tempting entry point for aggressive traders. We are going to wait and stick to our plan, which is to buy calls on a breakout above the simple 50-dma. Right now our entry point is $83.00. If triggered we will have two targets. Our first target is 89.85. Our second target will be $97.50. FYI: The P&F chart is bullish with a $112 target.

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           03/18/09 (unconfirmed)
Average Daily Volume =      25.7 million  


Perini Corp. - PCR - close: 20.98 change: -0.96 stop: 19.95

PCR sank toward support and traders bought the dip near $20.00. The late day bounce looks like a new entry point to get long the stock although it is worth noting that the close under the 10-dma and 100-dma is bearish.

PCR could be a short squeeze candidate. The most recent data listed short interest at more than 11% of the small 27.7 million-share float. The P&F chart is bullish with a $36 target. We have two targets. Our first target is $24.90. Our second target is $27.00.

Picked on December 16 at $ 22.36
Change since picked:      - 1.38
Earnings Date           02/26/09 (unconfirmed)
Average Daily Volume =       1.0 million  


Research In Motion - RIMM - close: 41.59 change: -1.24 stop: 37.99

We did not have to wait very long for RIMM to pull back and hit our entry point. Over the weekend we added RIMM with a trigger to buy calls at $41.50. The stock hit a low of $40.81 before bouncing. Now that the play is open we have two targets. Our first target is $44.95. Our second target is $48.00. FYI: The P&F chart is bullish with a $56 target.

Chart:
RIMM

Picked on December 22 at $ 41.50
Change since picked:      + 0.09
Earnings Date           12/18/08 (confirmed)
Average Daily Volume =        25 million  


Sunoco Inc - SUN - close: 41.94 change: -0.36 stop: 39.45

SUN spent most of the session trading sideways in spite of another sharp decline for crude oil futures. We are suggesting call positions here but readers probably have a good chance to buy a dip in the $40.50-40.00 range if you wait. The P&F chart is very bullish with a $54 target. Our target is $47.00.

Picked on December 20 at $ 42.30
Change since picked:      - 0.36
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       4.2 million  


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

*Currently we do not have any Strangle or Spread play updates*


CLOSED BULLISH PLAYS

Amazon.com - AMZN - close: 49.84 change: -1.72 stop: 49.45

The retail sector was hit hard today with a 3.8% drop in the RLX index. AMZN, an online retailer, followed suit with a 3.2% decline. Shares of AMZN slipped to an intraday low of $48.47 before traders decided to buy the dip near its 50-dma. The stock hit our stop loss at $49.45 closing the play.

Chart:
AMZN

Picked on December 13 at $ 51.25
Change since picked:      - 1.41
Earnings Date           01/28/09 (unconfirmed)
Average Daily Volume =      12.9 million  


FTSE/Xinhau China Index - FXI - close: 28.86 chg: -1.48 stop: 29.45

The Hong Kong Hang Seng index was down sharply on Monday following the bearish action on Friday. The Shanghai index also traded lower. This put pressure on shares of FXI and the ETF gapped open lower at $29.66 and then fell past the bottom edge of its recent trading range. FXI hit our stop loss at $29.45. We had been suggesting readers take profits for several days now but we were also expecting a spike toward the 100-dma and our secondary target at $32.50. Keep an eye on FXI to see if shares find support above the 50-dma.

Chart:
FXI

Picked on December 03 at $ 26.27 /gap down entry point
Change since picked:      + 2.59 /originally listed at $27.25
Earnings Date           00/00/00
Average Daily Volume =      51.2 million  


Google Inc. - GOOG - close: 297.11 change: -13.06 stop: 299.90

Monday turned out to be a bad day for GOOG. The stock broke down under round-number, psychological support at the $300 level and actually set a new two-week low. Today's action combined with last week's failure near the 50-dma is definitely ominous. Both our directional call play and our naked put play have been stopped out. If you sold the put short, when GOOG hit our stop you should have bought it back and closed the position.

Chart:
GOOG

Picked on December 13 at $315.76
Change since picked:      -18.65 /stopped out @ 299.90
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =       7.2 million  


iShares Dow Jones US Real Estate - IYR - cls: 36.47 chg: -0.78 stop: 34.95

Monday proved to be another volatile session for the IYR, the REIT ETF. The security sank toward support near $35.00, dipped under it late this afternoon and hit $34.68, only to bounce back very sharply at the end of the day. Our stop loss was hit at $34.95 closing this play. More nimble traders may want to buy this late day bounce with a stop under today's low. We're going to wait and see if there is any follow through to the upside.

Chart:
IYR

Picked on December 20 at $ 37.25
Change since picked:      - 0.78 /stopped out @ 34.95
Earnings Date           00/00/00
Average Daily Volume =        49 million  


Texas Industries - TXI - close: 32.45 change: -2.42 stop: 32.45

TXi showed relative weakness. The stock broke down under its three-week trendline of higher lows and sank past the bottom edge of its two-week trading range. The stock hit our stop loss at $32.45 and closed with a 6.9% loss.

I would keep an eye on TXI since it remains a candidate for a short squeeze. The most recent data listed short interest at more than 20% of the very small 21 million-share float.

Chart:
TXI

Picked on December 13 at $ 34.43
Change since picked:      + 0.44
Earnings Date           01/08/09 (unconfirmed)
Average Daily Volume =       745 thousand 


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