CALL Play Updates

Fluor Corp. - FLR - close: 52.56 change: +0.94 stop: 47.45

FLR managed a 1.8% gain but the rally stalled after the initial pop higher. We are still waiting for a dip toward its trendline of higher lows. The plan is to buy calls at $48.50.

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 <-- TRIGGER @ 48.50
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: 140.60 chg: +0.27 stop: 139.40

Yesterday's rally in the dollar is already stalling and the FXE bounced from the $140 level. I would still consider new positions here in the $141-140 zone. More conservative traders might want to consider inching up their stop a little closer to $140.00. I would buy the September calls. 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:      - 0.16
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Gold Miner ETF - GDX - close: 38.16 change: +0.98 stop: 36.49

The weakness in the dollar gave commodities a boost and the gold miners followed gold futures higher. 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:      + 1.67
            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: 50.29 change: +0.49 stop: 44.95

IDXX is bouncing back above the $50.00 level but we don't want to get tricked into buy calls with the stock this extended. We're still patiently waiting for a dip toward what should be 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: 28.75 change: +1.16 stop: 23.75

LM displayed some relative strength with a 4.2% rally and a bullish breakout over resistance near $28.00. We may want to up our trigger toward the $26.00 level. For now our entry point to buy calls is at $25.25 but we'll re-evaluate after we see the market's reaction to the GDP report Friday morning. 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         


S&P 100 index - OEX - close: 460.06 change: +4.88 stop: 451.90

The market's rally this morning triggered our OEX call play at $458.10. Unfortunately stocks started giving up their gains in the last 30 minutes of trading. If you did not launch call positions yet I suggest waiting to see how investors react to the GDP numbers tomorrow.

Our target to exit is 469.00. More aggressive traders may want to aim for the 480 region.

Chart:

Picked on     July 30 at $458.10 *triggered              
Change since picked:      + 1.96
Earnings Date           00/00/00 
Average Daily Volume =        xx 
Listed on  July 28, 2009         


Polaris - PII - close: 38.50 change: +1.96 stop: 31.45

PII has broken out to new highs but the rally is fading under the $40.00 level. Our plans haven't changed. 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: 79.38 change: +1.02 stop: 81.15

Today's action in ATK looks like a failed rally near $80.00. Readers can use it as a new entry point to buy puts. More conservative traders might want to consider inching down their stop loss.

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:      + 0.50
Earnings Date           08/06/09 (confirmed)
Average Daily Volume =       443 thousand 
Listed on  July 27, 2009         


LEAP Wireless - LEAP - close: 23.53 change: -1.81 stop: 27.55 *new*

LEAP continues to under perform. The stock lost more than 7% and did so on large volume. Accelerating the decline was an analyst downgrade. I am lowering our stop loss to 27.55, which is just above Tuesday's high.

Our first target for LEAP 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:      - 3.27
Earnings Date           08/06/09 (confirmed)
Average Daily Volume =       2.2 million  
Listed on  July 16, 2009         


United Technologies - UTX - close: 54.23 change: +1.03 stop: 55.05

Tomorrow will be a real test for UTX and it will probably come down to the reaction to the GDP numbers. If investors interpret the GDP report as better than expected the stocks will rally and UTX will probably breakout and hit our stop loss. I'm not suggesting new positions until we see how things shake out tomorrow. If there wasn't a major report tomorrow then today looks like a failed rally under resistance at $55.00. Our first target to take profits is at $50.15.

Picked on     July 22 at $ 53.12
Change since picked:      + 1.11
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: 55.59 change: -0.82 stop: n/a

MCD under performed the market thanks to Morgan Stanley downgrading the stock before the bell. Shares have now failed under the 200-dma and today's move is a close under its 100-dma. Nimble traders might want to consider directional put plays. 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:      - 2.25
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       7.8 million  
Listed on  July 18, 2009