CALL Play Updates

Fluor Corp. - FLR - close: 52.54 change: +1.02 stop: 49.45

FLR continued to bounce but I wouldn't get too overconfidence. The rebound in the market didn't get very far. I would still expect another dip to $51.00 or $50.00. Use the dip as an entry point to buy calls. Our first target is $54.80. Our second target is $59.00. This could take several weeks.

Picked on   August 17 at $ 51.00 *triggered            
Change since picked:      + 1.54
Earnings Date           08/10/09 (confirmed)
Average Daily Volume =       2.4 million  
Listed on  July 25, 2009         


Flowserve - FLS - close: 87.27 change: +4.12 stop: 72.45

FLS erased yesterday's losses with a huge 4.9% move today thanks to a new "buy" rating on the stock this morning. We want to wait for a dip to buy calls but more nimble traders can watch for this bounce to roll over and use it as a very short-term opportunity to trade puts.

Our trigger to open bullish positions is at $76.00. We'll use a stop loss at $72.45. More conservative traders can use a stop closer to $74.00. If triggered at $76.00 our first target is $83.50. Our second target is $89.00. Our time frame is several weeks.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 76.00
Change since picked:      + 0.00
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on August 17, 2009         


Genesse & Wyoming - GWR - close: 29.22 change: +0.57 stop: 26.90

There were some positive analyst comments out on the transports today. GWR managed a 1.9% gain. Volume was light today so I don't put a lot of emphasis on today's gain. Look to initiate positions in the $28.50-27.50 zone. An alternative would be to wait for a rise over $30.00 before launching positions. Our first target is $32.90. Our second target is $34.75.

FYI: The plan was to use small position sizes to limit our risk.

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 0.56
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


IDEXX Labs - IDXX - close: 49.93 change: +0.22 stop: $44.95

The bounce in IDXX struggled with the $50.00 level. I'm still expecting a drop toward $47.50. The plan is to buy calls on a dip at $47.50. If triggered at $47.50 our first target is $52.00. Our second target is $54.90. Our time frame is six to eight weeks once triggered.


*Original Strategy*
Picked on     July xx at $ xx.xx <-- TRIGGERs @ 47.50 
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: 27.57 change: +0.71 stop: 24.75

A number of the financials saw a pretty good bounce. LM rose 2.6% but it still has a short-term trend of lower highs. The plan is to buy calls at $26.00 but readers may want to try and wait for a dip closer to $25.00 instead. More aggressive traders might want to widen their stop just a bit to give LM a little more room. If triggered our first target is $29.75. Our second target is $33.40. My time frame is six to eight weeks. FYI: The P&F chart is bullish with a $39 target.

Picked on     July xx at $ xx.xx <-- TRIGGER 26.00
Change since picked:      + 0.00
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       3.4 million  
Listed on  July 25, 2009         


Lorillard Inc. - LO - close: 73.28 change: +0.70 stop: 69.45

LO is still churning sideways. We have a trigger to buy calls at $70.50. Our first target is $74.50. Our second target is $77.00. The Point & Figure chart is bullish with a $92.00 target.

Picked on   August xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/27/09 (confirmed)
Average Daily Volume =       1.5 million  
Listed on August 01, 2009         


U.S. Oil Fund - USO - close: 36.86 change: +1.34 stop: 33.30

Oil produced a pretty big bounce today. The USO gained 3.7%. I don't want to chase it. The plan is to buy calls on a dip near the trendline of support. Our trigger is at $34.25. Our first target is $37.50.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 34.25
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


PUT Play Updates

First Solar - FSLR - close: 133.12 chg: -1.31 stop: 151.00

FSLR gapped higher this morning on some analyst comments but the rally immediately failed under $139.00 and shares sank toward its recent lows. That was the sort of entry point I suggested yesterday that readers open new positions on.

We have two targets. Our first target is $122.50. Our second target is $111.00. This is a very aggressive trade and FSLR can be an extremely volatile stock. I'm suggesting very small position sizes. FYI: the Point & Figure chart is bearish with a $108 target.

Picked on   August 17 at $135.88 *triggered/gap down entry
Change since picked:      - 2.76
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       3.5 million  
Listed on August 15, 2009         


Genzyme - GENZ - close: 50.55 change: +0.23 stop: 52.55

GENZ seems to be lost in its own world. It doesn't go up with the market nor does it go down with the market. I don't see any changes from my prior comments. I still think this has turned more dangerous with the bullish action over the last several days. Longer-term the trend is still very bearish. More conservative traders may want to seriously consider an early exit right now. You can re-enter on a failed rally pattern or a new drop under $49.00.

Our first target to take profits is $45.25. Our second target is $41.00. The P&F chart is bearish with a $40 target.

FYI: More aggressive traders may want to give GENZ just a little bit more room and raise their stop loss above the $53.00 mark.

Picked on   August 03 at $ 49.90 *triggered         
Change since picked:      + 0.65
Earnings Date           10/22/09 (unconfirmed)
Average Daily Volume =       3.9 million  
Listed on August 01, 2009         


Green Mtn Coffee - GMCR - close: 58.83 chg: +0.38 stop: 66.55

GMCR spiked to $56.65 this morning and bounced but it under performed the rest of the market. The stock is short-term oversold so a bounce would be normal. I'm not suggesting new put positions at this time. GMCR has exceeded our first target. Our second and final target is at $55.50.

Picked on   August 11 at $ 65.84
Change since picked:      - 7.01
                              /1st target hit @ 60.50 (-8.1%)
Earnings Date           11/12/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on August 11, 2009         


Intl.Business Machines - IBM - cls: 117.63 change: +0.77 stop: 120.10

IBM slowly drifted higher on Tuesday and the rally stalled twice at the $118.00 mark. The real action could happen tomorrow as investors react to HPQ's earnings that came out tonight. Readers can use another failed rally under $120 as a new entry point for puts. Our first target to take profits is at $113.75, which is just above the top of the gap from mid July. Our second and final target is $111.25, which is near the bottom of the gap.

FYI: I would still buy calls at $120.25 should IBM breakout higher.

Picked on   August 08 at $118.17 /gap down entry
                               /originally listed at $119.33
Change since picked:      - 0.54
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =       7.9 million  
Listed on August 08, 2009         


Intercontintental Exchange - ICE - cls: 89.12 change: +2.08 stop: 92.55

ICE is bouncing back toward $90.00, which as broken support should be new resistance. A failed rally near $90.00 or its 30-dma can be used as a new entry point for puts.

ICE can be a very volatile stock so we should consider this an aggressive trade. Our target to exit is $83.75. More aggressive traders can aim lower.

Picked on   August 08 at $ 93.60 Buy Half Now   
Change since picked:      - 4.48

Picked on   August 13 at $ 89.85 triggered 2nd half
Change since picked:      - 0.73

Earnings Date           10/29/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on August 08, 2009         


Marvel Entertainment - MVL - close: 37.75 change: -0.01 stop: 39.26

MVL did not participate in the market's rally today. Shares drifted sideways and eventually closed virtually unchanged on the session. I would still consider new bearish positions here. Our target is $34.10 as the $34.00 level could be support. I am lowering the stop loss to $39.26.

Picked on   August 17 at $ 37.90 *triggered         
Change since picked:      - 0.15
Earnings Date           11/04/09 (unconfirmed)
Average Daily Volume =       710 thousand 
Listed on August 10, 2009         


Shanda Interactive - SNDA - close: 47.31 chg: +1.91 stop: 51.25

The Chinese markets bounced today and after SNDA tagged its exponential 200-dma yesterday it was natural to see an oversold bounce in the stock. Look for resistance in the $49.00-50.00 zone. Our target is the $41.50-40.00 zone. Remember, SNDA is a volatile stock and readers may want to use smaller position sizes.

Picked on   August 08 at $ 48.10 /gap higher entry
                               /originally listed at $47.83
Change since picked:      - 0.79
Earnings Date           09/01/09 (unconfirmed)
Average Daily Volume =       1.5 million  
Listed on August 08, 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: 55.26 change: +0.76 stop: n/a

This doesn't bode well for our strangle. MCD pretty much erased yesterday's declines. We only have three days left before August options expire. I am 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 $2.00 or higher.

Picked on     July 18 at $ 57.84
Change since picked:      - 2.58
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       7.8 million  
Listed on  July 18, 2009         


Schlumberger - SLB - close: 52.03 change: +0.73 stop: n/a

Oil service stocks managed a bounce thanks to strength in crude oil futures. SLB gained 1.4%. I'm not suggesting new positions at this time.

The options we suggested were the September $60.00 calls (SLB-IL) and the September $45.00 puts (SLB-UI). Our estimated cost is $1.00 and we want to sell if either option hits $2.50 or higher.

Picked on   August 15 at $ 52.00 /gap down entry Aug. 17th
Change since picked:      + 0.03
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009