CALL Play Updates

Fluor Corp. - FLR - close: 53.22 change: +0.68 stop: 49.45

Shares of FLR gapped open lower with the market this morning but quickly rebounded. Shares ended the session up 1.2%. I've been suggesting readers look for another dip near $51 or $50 but the low today was only $51.28. Shares are approaching potentially short-term resistance at $54.00. I would still buy calls on dips but readers may want to go ahead and up their stop toward $50.00. 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:      + 2.22
Earnings Date           08/10/09 (confirmed)
Average Daily Volume =       2.4 million  
Listed on  July 25, 2009         


Flowserve - FLS - close: 87.49 change: +0.22 stop: 72.45

After yesterday's upgrade-inspired rally FLS only rose 22 cents today. Right now the plan is to wait and buy calls on a dip at $76.00 but we might want to up that trigger toward $80.00.

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: 29.17 change: -0.05 stop: 26.90

The railroad sector did not participate in the market's strength today. Shares of GWR drifted sideways. 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:      + 0.51
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


IDEXX Labs - IDXX - close: 50.45 change: +0.52 stop: $44.95

IDXX's close over $50.00 is short-term bullish but we're still waiting for a dip toward support. 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: 27.84 change: +0.27 stop: 24.75

The action in LM over the last three weeks almost looks like a bull-flag consolidation pattern. Aggressive traders might want to consider a trigger to buy LM above $28.50 or above the August high (29.20).

Currently the plan is to buy calls at $26.00. 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: 73.16 change: -0.12 stop: 69.45

LO did not participate in the market's rally today. I don't see any changes from my prior comments. 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 <-- TRIGGER @ 70.50
Change since picked:      + 0.00
Earnings Date           07/27/09 (confirmed)
Average Daily Volume =       1.5 million  
Listed on August 01, 2009         


Ultra-Short S&P 500 - SDS - close: 45.90 chg: -0.80 stop: 44.90

While the market's rally today was a little surprising all it has done is fill the gap from Monday morning. There's no reason to abandon ship just yet. While I would buy calls on this dip readers may want to wait for a new bounce over $46.60 to initiate positions. Our first target to take profits is at $49.75. Our second target is $51.50. My time frame is less than four weeks (probably closer to two weeks).

Picked on   August 18 at $ 46.70 
Change since picked:      - 0.80
Earnings Date           00/00/00
Average Daily Volume =        38 million  
Listed on August 18, 2009         


U.S. Oil Fund - USO - close: 38.12 change: +1.26 stop: 33.75 *new*

Economists were expecting last week's oil inventory numbers to rise by 1.2 million barrels. The Energy Department released their weekly report this morning and oil inventory fell by 8.4 million barrels. Naturally this sent oil shooting higher. The USO has rallied to its August highs and on strong volume. Unfortunately we're still on the sidelines. The plan was to buy calls on the USO with a dip toward its trendline of higher lows. That plan is still in place but more nimble traders may want to consider some sort of breakout entry point. I am raising our entry point to buy calls to $35.00 and our stop loss to $33.75. Our first target is $37.50.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 35.00 *new*
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


PUT Play Updates

Ultra-Short Oil&Gas - DIG - close: 28.20 change: +0.95 stop: 29.10

A big move in crude oil today lifted the oil sector. The DIG has filled the gap from Monday. Shares have risen higher than expected and closed above potential resistance at the 50-dma and the $28.00 level. The rally today hit our trigger to buy puts at $27.75. I would wait for a new decline under $27.75 or $27.50 before initiating new put positions. Our first target is $24.50.

Chart:

Picked on   August 19 at $ 27.75 *triggered 
Change since picked:      + 0.45
Earnings Date           00/00/00
Average Daily Volume =       5.9 million  
Listed on August 18, 2009         


First Solar - FSLR - close: 131.43 chg: -1.69 stop: 151.00

FSLR continues to under perform. The stock gapped open lower and fell to $127.84 before trimming its losses. The stock is short-term oversold so I'd expect a bounce soon.

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:      - 4.45
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       3.5 million  
Listed on August 15, 2009         


Genzyme - GENZ - close: 51.02 change: +0.47 stop: 52.55

GENZ is still churning sideways but the last few days have a bullish trend of higher lows. I am not suggesting new put positions at this time. More conservative traders may want to exit early 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:      + 1.12
Earnings Date           10/22/09 (unconfirmed)
Average Daily Volume =       3.9 million  
Listed on August 01, 2009         


Intl.Business Machines - IBM - cls: 118.57 change: +0.94 stop: 120.10

HPQ did not see much of a post-earnings move. Shares of IBM appeared to follow the market lower this morning and its rebound in the afternoon. The bounce places IBM back in its previous trading range. Another failed rally under $120.00 can be used as an 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. Use the September strikes. I prefer the $120s and $125s.

Picked on   August 08 at $118.17 /gap down entry
                               /originally listed at $119.33
Change since picked:      + 0.40
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =       7.9 million  
Listed on August 08, 2009         


Intercontintental Exchange - ICE - cls: 89.85 change: +0.73 stop: 92.55

ICE temporarily traded over what should be resistance at $90.00. the rise today was just enough to fill the gap down from Monday morning. Shares are once again testing technical resistance at its 30-dma, which has been an entry point to bearish positions since early August.

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:      - 3.75

Picked on   August 13 at $ 89.85 triggered 2nd half
Change since picked:      - 0.00

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


Marvel Entertainment - MVL - close: 37.66 change: -0.09 stop: 39.26

MVL is bouncing back toward $38.00, which as broken support should be resistance. Readers can use this as a new entry point for puts. 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:      - 0.24
Earnings Date           11/04/09 (unconfirmed)
Average Daily Volume =       710 thousand 
Listed on August 10, 2009         


Shanda Interactive - SNDA - close: 46.55 chg: -0.76 stop: 51.25

I'm a little surprised that SNDA isn't showing more weakness considering the plunge in the Chinese markets. Volume remains light this week. 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:      - 1.55
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: 55.65 change: +0.39 stop: n/a

This bounce is bad news for our strangle play. We need to see a strong move under $55.00 if we're going to make any money on this trade. Time is running out fast. I am lowering our exit target. 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 $1.75 or higher.

Picked on     July 18 at $ 57.84
Change since picked:      - 2.19
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       7.8 million  
Listed on  July 18, 2009         


Schlumberger - SLB - close: 52.87 change: +0.84 stop: n/a

SLB has filled the gap from Monday morning but the short-term trend is still down. 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:      + 0.87
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009         


CLOSED BEARISH PLAYS

Green Mtn Coffee - GMCR - close: 55.61 chg: -3.22 stop: 66.55

Target achieved. GMCR fell to $54.32 midday. Our second and final target to exit was $55.50. Readers may want to keep an eye on it. A failed rally under $60.00 or its 50-dma might be another entry point for puts.

Chart:

Picked on   August 11 at $ 65.84
Change since picked:      -10.34<--2nd target hit @ 55.50 (-15.7%)
                              /1st target hit @ 60.50 (-8.1%)
Earnings Date           11/12/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on August 11, 2009