Option Investor
Play Updates

Quiet Day on Wall Street

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CALL Play Updates

Alcon Inc - ACL - close: 85.37 change: -0.45 stop: 83.75

ACL spent the session consolidating sideways and bouncing from the $85.00 level. Overall I don't see any changes from our previous comments. Wait for a breakout over the very short-term trend of lower highs as the next 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.

Picked on December 22 at $ 85.25 *triggered     
Change since picked:      + 0.12
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       840 thousand 


Caterpillar - CAT - close: 41.91 change: +0.78 stop: 39.95

CAT delivered a decent bounce today with a 1.9% gain but I remain wary of the price action. We're still not suggesting new bullish positions at this time. I want to see a lot more relative strength or a clean bounce from the $40.00 level. 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:      - 1.89
Earnings Date           01/29/09 (unconfirmed)
Average Daily Volume =      13.4 million  


Research In Motion - RIMM - close: 41.02 change: -0.79 stop: 37.99

The bounce in RIMM continues to fade, which is short-term bearish. Odds are good that we'll get a chance to buy a dip near $40.00. Wait for the pull back. It looks like we were too early buying calls at $41.50. More conservative traders may want to tighten their stop loss.

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.

Picked on December 22 at $ 41.50
Change since picked:      - 0.48
Earnings Date           12/18/08 (confirmed)
Average Daily Volume =        25 million  


Sunoco Inc - SUN - close: 42.11 change: +0.95 stop: 39.45

The refining stocks managed some decent gains in spite of another drop in crude oil. Tesoro (TSO) added more than 6% today. Shares of SUN out performed the market with a 2.3% gain. SUN is still holding above what should be support at broken resistance near $40.00 and its 200-dma. My short-term market bias is down so I suspect that SUN will test the $40 level yet again.

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:      - 0.19
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       4.2 million  


PUT Play Updates

AvalonBay - AVB - close: 57.60 change: -0.23 stop: 64.05

I know the closing numbers on AVB looks off. Your quote service says AVB lost 23 cent when it actually dropped $2.93 from yesterday's close of $60.53. This is because the stock actually declined 23 cents and began trading "ex-dividend". The company will pay a $2.70 cash dividend on January 29th to shareholders on record as of December 29th. So it looks like AVB decided that shares would reflect the dividend early.

That's okay with us. The trend is still the same. Shares are breaking down. The opening trade at $57.98 is our new entry point. We would still consider new put positions here. We have two targets. Our first target is $55.10. Our second target is $50.55. FYI: The Point & Figure chart currently points to $50.00.

Picked on December 24 at $ 57.98 *gap down entry
Change since picked:      - 0.38
Earnings Date           02/04/09 (unconfirmed)
Average Daily Volume =       3.5 million  


Avon Products - AVP - close: 22.63 change: +0.17 stop: 24.05

AVP painted a minor bounce today but the move actually provides a more attractive entry point for us to open put positions. 00.

We have two targets. Our first target is $20.25. Our second target is $18.60. FYI: The Point & Figure chart is bearish with an $11 target.

Picked on December 23 at $ 22.46
Change since picked:      + 0.17
Earnings Date           02/05/09 (unconfirmed)
Average Daily Volume =       4.6 million  


Capital One Financial - COF - close: 29.40 chg: +0.40 stop: 31.51

COF gapped open higher at $29.38 (our new entry price) and spent the day trading sideways. A bounce or failed rally anywhere under $31.00 would look like a new entry point to buy puts. I don't see any changes from our previous comments.

Our first target is $25.50. Our second target will be a new relative low at $21.00. FYI: The P&F chart is bearish with a $17 target.

Picked on December 23 at $ 29.38 /gap higher entry
Change since picked:      + 0.02
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =       8.5 million  


Strangle & Spread Play Updates

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