CALL Play Updates

Fluor Corp. - FLR - close: 53.65 change: -1.32 stop: 47.45

Traders were quick to buy the dip in FLR near $52.50. The afternoon bounce has the stock poised to retest resistance near $55.00. Shares still look overbought here. We want to buy a dip back in the $50.00-48.00 zone. Officially our entry point will be $50.25. If triggered our first target is $54.80. Our second target is $59.00 but we may not have time. FLR is due to report earnings in less than three weeks. We do not want to hold over the announcement.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           08/10/09 (unconfirmed)
Average Daily Volume =       2.4 million  
Listed on  July 25, 2009         


Euro Currency ETF - FXE - close: 141.70 chg: -0.67 stop: 139.40

The U.S. dollar managed a bounce from its recent lows and the FXE hit some profit taking. I've been warning readers to expect a dip towards $141 or $140 but it's not there yet. Our first target is $144.50. Our second target is $148.50. The P&F chart is bullish with a $168 target.

Picked on     June 23 at $140.76
Change since picked:      + 0.94
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Gold Miner ETF - GDX - close: 38.35 change: -1.50 stop: 36.49

The bounce in the dollar sent gold prices lower and the gold miners followed. The GDX gapped down and opened at $38.78 but eventually found some support in the 37.50-37.00 zone. I'm not suggesting new bullish positions in the GDX at this time. GDX has already exceeded our first target. Our second target is $42.40.

Picked on     July 13 at $ 36.49 /gap higher entry
                               /originally listed at $35.93
Change since picked:      + 1.86
            gap higher exit   /1st target hit @ 39.95 (+9.4%)
Earnings Date           00/00/00
Average Daily Volume =       6.8 million  
Listed on  July 13, 2009         


IDEXX Labs - IDXX - close: 49.19 change: -0.80 stop: 44.95

IDXX is slowly starting to contract. There is no change from my prior comments. We are waiting for a pull back toward previous resistance and what should be new support.

The plan is to buy calls on a dip at $47.50. If triggered our first target is $52.00. Our second target is $54.90. Our time frame is four to eight weeks.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/24/09 (confirmed)
Average Daily Volume =       383 thousand 
Listed on  July 25, 2009         


Legg Mason - LM - close: 27.39 change: -0.32 stop: 23.75

It's clear that upward momentum is stalling. LM has been trading sideways the last couple of sessions. We just need to be patient here. The plan is to buy calls on the stock at $25.25 but we can really use the 25.25-24.00 zone as an entry point. If triggered our first target is $29.50. Our second target is $33.40. My time frame is four to eight weeks.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       3.4 million  
Listed on  July 25, 2009         


Polaris - PII - close: 36.91 change: +0.24 stop: 31.45

PII has closed above potential resistance at its May 2009 high but it has yet to break resistance near its July 2008 lows. We might want to raise our trigger to buy calls toward the $34.00 level but for now I am suggesting readers wait for a dip in the $33.00-32.00 zone with a tight stop at $31.45. Our first target is $37.25. Our second target is $39.50.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/16/09 (confirmed)
Average Daily Volume =       436 thousand 
Listed on  July 18, 2009         


PUT Play Updates

Alliant Techsystems - ATK - close: 78.74 change: -0.14 stop: 81.15

After under performing for days the defense sector actually managed a bounce today. Yet ATK lagged its peers and closed lower. I don't see any changes from the new play description and would still buy puts right here.

Our first target is $75.25. Our second target is $72.00 but we may not have time for ATK to reach $72.00. Earnings are due out on August 6th and we don't want to hold over the announcement. I'm suggesting a stop loss at $81.15. FYI: The Point & Figure chart is bearish with a $62 target.

Picked on     July 27 at $ 78.88
Change since picked:      - 0.14
Earnings Date           08/06/09 (confirmed)
Average Daily Volume =       443 thousand 
Listed on  July 27, 2009         


LEAP Wireless - LEAP - close: 26.76 change: +0.26 stop: 29.45

Larger rival Sprint Nextel (S) bought Virgin Mobile USA (VM) for $483 million. This makes S a bigger competitor with LEAP for the prepaid wireless market.

LEAP rallied toward $27.50 and reversed. This could be used as a new bearish entry point but I would hesitate to actually launch new positions until we see the S&P 500 fail under 1,000 or break the short-term up trend. Our first target is $22.65. Our second target is $20.25. The $22.50 level could be strong support so I suggest readers take off most of their position there. FYI: The P&F chart is bearish with a $19.00 target.

Picked on     July 17 at $ 26.80 *triggered    
Change since picked:      - 0.04
Earnings Date           08/06/09 (confirmed)
Average Daily Volume =       2.2 million  
Listed on  July 16, 2009         


Nike - NKE - close: 52.91 change: +0.54 stop: 53.51

NKE is still inching higher. Wait and watch for a failed rally under the $53.50 mark or wait for a new drop under $50.00 to launch positions. Our first target is the $46.00-45.00 zone.

Picked on     July 23 at $ 51.14
Change since picked:      + 1.57
Earnings Date           09/23/09 (unconfirmed)
Average Daily Volume =       3.8 million  
Listed on  July 23, 2009         


United Technologies - UTX - close: 52.44 change: +0.33 stop: 55.05

UTX delivered a minor bounce. Some of the short-term technicals are suggesting the bounce will continue. I'm not suggesting new positions at this time but watch for a failed rally under $54.00. Our first target to take profits is at $50.15.

Picked on     July 22 at $ 53.12
Change since picked:      - 0.68
Earnings Date           07/21/09 (confirmed)
Average Daily Volume =       5.9 million  
Listed on  July 22, 2009         


Strangle & Spread Play Updates

(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.)

McDonald's - MCD - close: 56.47 change: +0.50 stop: n/a

This is the fourth day in a row that MCD has tried to bounce from its 100-dma and today it was successful. Yet the rally stalled at its simple 200-dma. We're not suggesting new strangle positions at this time.

I suggested the August $60 calls (MCD-HL) and the August $55 puts (MCD-TK). Our estimated cost is $1.25 (0.70 + 0.55). We want to sell if either option hits $2.75 or higher. This may take a few weeks to succeed.

Picked on     July 18 at $ 57.84
Change since picked:      - 1.37
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       7.8 million  
Listed on  July 18, 2009         


CLOSED BEARISH PLAYS

Compass Minerals Intl. - CMP - cls: 49.09 change: +0.25 stop: 50.05

The plan was to exit this put play tonight at the closing bell to avoid earnings. The company beat both the earnings estimate and the revenue estimate, which has been a rare feat this season.

Chart:

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      - 3.16 *exit early @ $49.09 (-6.0%)
                               /1st target hit @ 47.50 (-9.0%)
Earnings Date           07/28/09 (confirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Genzyme Corp. - GENZ - close: 54.72 change: +0.99 stop: 54.15

The biotech sector continued to rally thanks to better than expected earnings from AMGN last night. GENZ broke through the $54.00 level and closed our play at $54.15. The overall trend in GENZ is still bearish and I would keep it on your watch list. Our strategy was to open 1/2 a position in the $52.00-53.00 zone and the second half on a breakdown under $50.00, which was never triggered.

Chart:

1st Entry on  July 23 at $ 52.17 *1/2 of position
2nd Entry on  July xx at $ xx.xx (2nd half @ trigger 49.90)*not opened*
Change since picked:      + 1.98 <-- stopped @ 54.15 (+3.7%)
Earnings Date           07/22/09 (confirmed)
Average Daily Volume =       2.8 million  
Listed on  July 22, 2009