Now that the S&P 500 has broken higher we are updating several new triggers and stop losses.


CALL Play Updates

FISERV Inc. - FISV - close: 49.09 change: +1.24 stop: 46.60

After an initial spike lower toward $47.00 FISV shot higher and broke out past resistance near $48.50. Shares hit our trigger to buy calls at $48.60 opening the play. I would still consider new bullish positions here but after four days of gains the market might dip. A pull back near $48.00 would also work well. Our first target to take profit is at $52.50. I'm setting a second target to exit completely at $54.00.

Suggested Options:
We want to use the September or December calls.

Annotated Chart:

Picked on   August 21 at $ 48.60 *triggered         
Change since picked:      + 0.49
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       1.5 million  
Listed on August 19, 2009         


Fluor Corp. - FLR - close: 55.87 change: +1.43 stop: 49.95

Target achieved. FLR has exceeded our first target to take profits at $54.80. The stock gapped open higher at $55.10 and spent most of the day testing resistance near $56.00. Shares are a little short-term overbought. I would expect a dip. Our second and final target is $59.00.

Suggested Options:
I am not suggesting new positions at this time. Look for a dip near the long-term trendline of higher lows.

Annotated Chart:

Picked on   August 17 at $ 51.00 *triggered            
Change since picked:      + 4.87
                           /1st target exceeded @ 55.10 gap open (+8.0%)
Earnings Date           08/10/09 (confirmed)
Average Daily Volume =       2.4 million  
Listed on  July 25, 2009         


Flowserve - FLS - close: 89.29 change: +1.80 stop: 84.75 *new*

FLS has rallied to new highs for the year with a close above its early August highs. I'm tempted to buy calls here but shares look a little overbought with a $10 bounce off last Monday's lows. I'm suggesting we look to buy calls on a dip at $87.50 and we'll raise our stop loss to $84.75. This would be a test of the new trend of higher lows. If triggered at $87.50 our first target is $92.25. Our second target is $98.50. Our time frame is several weeks.

Suggested Options:
If triggered we want to play the September or October calls. I'd use the $85s, 90s, or $95s.

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 87.50
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: 31.01 change: +1.57 stop: 27.75 *new*

The DJUSRR railroad index has broken out to new highs for the year. I'm expecting GWR to try and catch up with its peers. The stock is off to a good start with a 5.3% rally on Friday and a breakout over the $30.00 mark. Volume was above average on the gain. I'm upping the stop loss to $27.75. 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.

Suggested Options:
If you're looking for an entry point watch for a dip near $29.50. I'd use the September or October calls.

Annotated Chart:

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 2.35
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


IDEXX Labs - IDXX - close: 50.73 change: +0.15 stop: varies

The market may have broken out from its trading range but IDXX has not. Our original plan is to buy calls on a dip near support at $47.50. However, that has refused to happen. I'm suggesting another aggressive entry point. IDXX has found resistance near $51.50. Let's use small positions and buy calls at $51.75. We'll use a stop loss at $49.75 and our first target will be $54.90.

If IDXX pulls back the trigger is $47.50 and a stop loss at $44.95.

Suggested Options:
If IDXX hits one of our triggers we want to trade the September or October calls. I'd use the $45s and $50s on the bottom trigger and the $50s and $55s on the upper trigger.

Annotated Chart:


*Original Strategy*
Picked on     July xx at $ xx.xx <-- TRIGGERs @ 47.50 or 51.75
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: 28.63 change: +0.38 stop: varies

I'm adding an aggressive trigger to LM in case the stock breaks out higher. Currently the plan is to buy calls on a dip at $26.60 with a stop loss at $24.95. I'm adding a breakout trigger at $29.50 and a stop loss at $26.40. If LM hits our breakout trigger we want to trade small positions sizes at least 1/2 to 1/4 our normal position. FYI: The P&F chart is bullish with a $39 target.

Suggested Options:
We want to trade the November calls (Septembers might work). I suggest the $30 strike but strikes are available at $1.00 increments.

Annotated Chart:

Picked on     July xx at $ xx.xx <-- TRIGGER 26.60 *new*
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: 74.87 change: +1.28 stop: varies

We've been waiting for LO to return and retest broken resistance as support near $70.00. That has yet to happen. I'm going to leave that trigger active (70.50, stop @ 69.45) but I'm adding an aggressive breakout trigger. Shares are testing resistance near $75.00. The July 27th high was $75.50. I'm suggesting an alternative trigger to buy calls at $75.75 with a stop loss at $72.75 and a primary target of $79.90. If triggered at $75.75 we want to trade very small positions 1/2 to 1/4 our normal trade.

Suggested Options:
We want to trade the September or December calls. At this point I'd probably favor the Decembers.

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 70.50 or 75.75
Change since picked:      + 0.00
Earnings Date           07/27/09 (confirmed)
Average Daily Volume =       1.5 million  
Listed on August 01, 2009         


State Street (Bank) STT - close: 53.52 change: -0.54 stop: 48.90

Hmmmm... it is a little bit disappointing to see STT slide -1% while the rest of the banking sector was breaking out to new highs. The trend is still bullish but the relative weakness may be a warning. Our plan is to buy calls on a dip at $52.50. Actually we can use the $52.50-50.00 zone as an entry point. Our first target is $55.00. Our second target is $59.50. Currently the Point & Figure chart is bullish with a $62 target.

Suggested Options:
I am suggesting the September or November $50 and $55 calls.

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER 52.50
Change since picked:      + 0.00
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


U.S. Oil Fund - USO - close: 38.23 change: +0.56 stop: 34.15 *new*

Commodities rallied on Friday but the USO failed to truly breakout past its August highs. I am upping our trigger from $35.00 to $36.00 and we'll raise our stop loss to $34.15, which is just under the rising 100-dma. If triggered at $36.00 our first target to take profits is $39.75.

Suggested Options:
If the USO hits our trigger to buy calls at $36.00 we want to trade the September or October calls. I prefer the Octobers. Strikes are available at $1.00 increments.

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 36.00 
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: 121.54 chg: -8.88 stop: 141.50 *new*

Target exceeded. Market rally? What market rally? Shares of FSLR opened up weak thanks to an analyst downgrade. Shares just continued to accelerate lower and lost 6.8% on the session. Our first target to take profits was at $122.50. The stock is very, very oversold with the three-week plunge from $175. I would expect some sort of oversold bounce near $120. Our second and final target to exit is $111.00. I'm lowering the stop loss to $141.50 since the $140 level should be new resistance.

Suggested Options:
I am not suggesting new positions at this time.

Annotated Chart:

Picked on   August 17 at $135.88 *triggered/gap down entry
Change since picked:      -14.34
                               /1st target hit @ 122.50 (-9.8%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       3.5 million  
Listed on August 15, 2009         


Intl.Business Machines - IBM - cls: 119.90 change: +0.95 stop: 120.10

Wow! I am a little shocked that with the market in breakout mode IBM couldn't join in. Shares stalled at resistance at $120.00. It did manage to hit $120.01. A breakout seems imminent but resistance held for a reason and that reason was probably option expiration. It's common to see stocks close near major strikes at expiration. I am not suggesting new put positions and readers may want to exit any put positions immediately. We've been aiming for a drop to $113.75.

We already have a trigger to buy calls at $120.25 should IBM breakout. We'll use a stop loss at $117.45. Our first target would be $124.50. Our second target will be $129.00.

Suggested Options:
I am not suggesting new put positions. If IBM breaks higher we want to buy the September or October calls. I prefer the $120 or $125 strikes.

Annotated Chart:

Picked on   August 08 at $118.17 /gap down entry
                               /originally listed at $119.33
Change since picked:      + 1.73
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =       7.9 million  
Listed on August 08, 2009         


Marvel Entertainment - MVL - close: 38.01 change: +0.35 stop: 39.05 *new*

The S&P 500 has broken out to new highs after weeks in a trading range. That's a powerful current to swim against. More conservative traders will want to seriously consider an early exit in this MVL put play. I'm not suggesting new positions and we're lowering the stop loss to $39.05. Our target is $34.10.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   August 17 at $ 37.90 *triggered         
Change since picked:      + 0.11
Earnings Date           11/04/09 (unconfirmed)
Average Daily Volume =       710 thousand 
Listed on August 10, 2009         


Shanda Interactive - SNDA - close: 48.58 chg: -0.21 stop: 50.75

Our SNDA might still yet live. The Chinese market rallied 1.7% on Friday. Yet SNDA's rally attempt failed at $50.00 resistance. This looks like a new bearish entry point to buy puts but I hesitate to open new bearish positions with the U.S. markets breaking out higher. More conservative traders may want to ratchet down their stops closer to the $50.00 level. Our target is the $41.50-40.00 zone. Remember, SNDA is a volatile stock and readers may want to use smaller position sizes.

Suggested Options:
Technically this is a new entry point and I'd use the September puts but big picture I would hesitate to open new plays.

Annotated Chart:

Picked on   August 08 at $ 48.10 /gap higher entry
                               /originally listed at $47.83
Change since picked:      + 0.69
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.)

Schlumberger - SLB - close: 56.56 change: +2.76 stop: n/a

Strength in the oil and oil services sector has pushed SLB from a bearish breakdown last Monday to a new bullish breakout on Friday. I am 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.

Suggested Options:
No new positions at this time.

Annotated Chart:

Picked on   August 15 at $ 52.00 /gap down entry Aug. 17th
Change since picked:      + 4.56
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009         


CLOSED BEARISH PLAYS

Ultra-Short Oil&Gas - DIG - close: 30.28 change: +1.57 stop: 29.10

Oil stocks exploded higher out performing the broader market. The combination of a weak dollar, stronger crude oil and a widespread market rally pushed the DIG through our stop loss at $29.10. Actually shares gapped open higher at $29.33. This ETF may be a new bullish candidate once shares fill the gap from Friday morning.

Chart:

Picked on   August 19 at $ 27.75 *triggered 
Change since picked:      + 1.58<--stopped @ 29.33 gap exit (+5.6%)
Earnings Date           00/00/00
Average Daily Volume =       5.9 million  
Listed on August 18, 2009         


iShares Transports - IYT - close: 67.57 change: +1.67 stop: 66.75

With the market in breakout mode the IYT managed a 2.5% gain. Shares hit our stop loss at $66.75. The ETF still has resistance at the $68.00 level but technicals are turning positive again.

Chart:

Picked on   August 19 at $ 65.40
Change since picked:      + 1.35<--stopped @ 66.75 (+2.0%)
Earnings Date           00/00/00
Average Daily Volume =       772 thousand 
Listed on August 19, 2009         


CLOSED STRANGLE & SPREAD PLAYS

McDonald's - MCD - close: 56.27 change: +0.13 stop: n/a

Our MCD strangle did not pan out with shares churning sideways over the last four weeks. The options we used were the August $60 calls (MCD-HL) and the August $55 puts (MCD-TK). Our estimated cost was $1.25 (0.70 + 0.55).

Chart:

Picked on     July 18 at $ 57.84
Change since picked:      - 1.57
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       7.8 million  
Listed on  July 18, 2009