CALL Play Updates

Apple Inc. - AAPL - close: 165.18 change: -0.11 stop: 163.40

The market's bounce off the early morning lows didn't get very far. AAPL pulled back and is resting on support near $165.00 yet again. The short-term trend of lower highs over the last few days is bearish and is suggesting that AAPL will break lower. More conservative traders may want to up their stops or just exit early, especially since the market started to slip again late in the session. I'm not suggesting new bullish positions at this time. Our first target is $174.00. Our second target is $179.00. FYI: The P&F chart points to a $231 target.

Picked on   August 26 at $166.50 *(small positions 1/2 to 1/4)
Change since picked:      - 1.32
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =        14 million  
Listed on August 25, 2009         


Allegheny Tech. - ATI - close: 28.64 change: -0.63 stop: 27.95

Traders bought the dip in ATI near support at $28.00 and its 200-dma. Unfortunately the bounce began to fade and shares lost another 2%. Aggressive traders may want to buy this dip. I'm not suggesting new positions at this time.

Our first target is $34.50. Our second target is $39.00. Time frame on the first target is only two or three weeks. The $39 target could take several weeks.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      - 1.61
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


FISERV Inc. - FISV - close: 47.28 change: -0.27 stop: 46.60

FISV is still contracting. The stock is down four days in a row. Today's move is bearish with a close under its 50-dma yet FISV held support at the $47.00 level. The possibility exists that FISV has now formed a bearish double top with the July and August peaks. The August low was $46.68, which is why our stop is at $46.60. More conservative traders may want to inch their stops up toward $47.00 anyway. I'm not suggesting new positions at this time. Our first target to take profit is at $52.50. I'm setting a second target to exit completely at $54.00.

Picked on   August 21 at $ 48.60 *triggered         
Change since picked:      - 1.32
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       1.5 million  
Listed on August 19, 2009         


Goldman Sachs - GS - close: 158.54 change: -1.63 stop: 159.00

Goldman continues to slip. The close under $160.00 is bearish and shares are nearing technical support at their rising 50-dma. We currently have a breakout trigger but I would also watch for a dip or a bounce near $150.00 as a potential entry point to buy calls.

If GS can breakout I'm suggesting readers open small call positions (smaller than our normal trade size) at $166.75. If triggered our first target is $179.00. FYI: The Point & Figure chart is bullish with a $228 target.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 166.75
Change since picked:      + 0.00
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       8.8 million  
Listed on August 29, 2009         


Genesse & Wyoming - GWR - close: 29.85 change: -0.48 stop: 28.90

GWR's close under $30.00 is short-term bearish and more conservative traders may want to exit early now. I'm not suggesting new positions at this time but a bounce from $29.00 could end up being a new entry point. 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:      + 1.19
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 86.20 change: -0.08 stop: 84.75

GWW's bounce from its 50-dma didn't make it very far. That doesn't bode well for the stock. More conservative traders might want to up their stops toward yesterday's lows (near $85.60). I'm not suggesting new bullish positions at this time. Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 0.20
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


iShares Financials - IYF - close: 48.86 change: -0.50 stop: 44.90

The IYF is still correcting. This ETF is now testing its 30-dma. I'm suggesting we buy calls on the IYF at $47.00 (or the $47.00-46.00 zone). If triggered our first target is $51.50. Our second target is $54.50.

Picked on September xx at $ xx.xx <-- TRIGGER @ 47.00
Change since picked:       + 0.00
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Legg Mason - LM - close: 26.72 change: -0.06 stop: 25.95

LM managed to hold support at its long-term trendline and its 50-dma. Yet the bounce didn't make it very far. I'm expecting another dip toward $26.00. After looking more closely at the intraday chart more conservative traders may want to abandon ship now. I'm not suggesting new positions at this time. The plan was to use small position sizes.

Our first target is $32.45. Our second target is $34.85. FYI: The P&F chart is bullish with a $39 target.

Picked on   August 28 at $ 29.50 *triggered               
Change since picked:      - 2.78
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       3.4 million  
Listed on  July 25, 2009         


Mettler Toledo - MTD - close: 86.53 change: -0.12 stop: 84.99

MTD is still trading sideways, albeit in a volatile fashion. The stock dipped to $85.34 this morning. Odds are good that if the market moves lower from here we'll be stopped out soon. I'm not suggesting new positions at this time. Our first target is $93.50. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.

Picked on   August 27 at $ 88.50 *triggered  (1/4 normal size)
Change since picked:      - 1.97
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Newmarket Corp. - NEU - close: 82.48 change: +1.53 stop: 79.00

NEU was one of the few bright spots in the market. The stock gained 1.8% as traders bought the dip near $80 again this morning. This rebound looks like another bullish entry point but I hesitate to launch new positions given the market's new bearish tone. More conservative traders might want to up their stops closer to $80.00.

Our first target to take profits is at $88.50. Our second and final target is $92.50. FYI: The Point & Figure chart is bullish with a $116.00 target.

Picked on   August 24 at $ 84.33 <- buy half now 8/24/09
                    /originally listed at $83.54, gapped higher @ 84.33
Change since picked:      - 1.85

Picked on September 1 at $ 80.50 *triggered 2nd half
Change since picked:      + 1.98
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       141 thousand 
Listed on August 24, 2009         


Occidental Petrol. - OXY - close: 71.81 change: -0.42 stop: 69.45

OXY is still clinging to the $72 region and its 30-dma. Unfortunately if the market or oil continues to slip OXY will most likely follow them. I'm expecting to see a dip near $70.00 or the 50-dma. I'd watch for a bounce from $70 as a potential entry point. Our first target is $77.00. Our second target is $79.85.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      - 0.19
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009         


PPG Inds. Inc. - PPG - close: 53.93 change: -0.15 stop: 52.95

PPG is still consolidating sideways. The low today was $53.31. If the market sees another drop we'll probably get stopped out at $52.95. I'm not suggesting new positions at this time. Our first target is $59.80.

Picked on   August 28 at $ 55.65
Change since picked:      - 1.57
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


State Street (Bank) STT - close: 50.01 change: -0.13 stop: 49.45

STT is desperately holding on to the $50.00 level and almost lost its grip this afternoon with a dip to $49.82. If the financials slip again tomorrow I expect to be stopped out. I'd probably wait for a bounce back over $52.00 before considering new bullish positions.

Our first target is $55.00. Our second target is $59.80. Currently the Point & Figure chart is bullish with a $62 target.

Picked on   August 31 at $ 52.00 
Change since picked:      - 1.99
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 28.66 change: +1.33 stop: 27.49

News that the Obama administration might be giving up on the government healthcare option sent healthcare stocks higher. UNH rallied 4.8%. We have a plan to buy calls on this stock with a breakout over $30.00. Our trigger is at $30.55. If triggered our first target to take profits is $34.50. Our second target is $37.50. My time frame is about eight weeks.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 30.55
Change since picked:      + 0.00
Earnings Date           10/20/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 29, 2009         


U.S. Oil Fund - USO - close: 35.18 change: -0.09 stop: 34.49

The USO has now dipped to its longer-term, multi-month trendline of higher lows (support), which happens to be bolstered by its 100-dma. This pull back is a new bullish entry point to buy calls on the USO. If oil continues to slip we'll be stopped out pretty fast at $34.49. Our first target to take profits is at $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      - 1.32
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


PUT Play Updates

Apollo Group - APOL - close: 64.30 chg: +0.67 stop: 66.55

APOL managed a little bit of an oversold bounce this morning but it stalled under the $65.00 level. This bounce looks like a better entry point to buy puts. Our first target to take profits is $57.50. Currently the Point & Figure chart is bearish with a $56 target.

Picked on September 01 at $ 63.63 
Change since picked:       + 0.67
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        1.9 million  
Listed on September 01, 2009         


First Solar - FSLR - close: 118.32 chg: +3.34 stop: 131.00

FSLR almost hit our target this morning. Shares dipped to $112.09 before bouncing. The rebound had trouble with the $120 level this afternoon. The trend is down but the stock is very oversold and the bounce could last longer than a day. I'm not suggesting new positions at this time. More aggressive traders may want to aim for the $100.00 level. FSLR has already hit our first target at $122.50. Our second and final target is $111.00.

Picked on   August 17 at $135.88 *triggered/gap down entry
Change since picked:      -17.56
                               /1st target hit @ 122.50 (-9.8%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       3.5 million  
Listed on August 15, 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.)

Research In Motion - RIMM - close: 73.91 chg: +0.37 stop: n/a

RIMM is still churning sideways. Our entry zone to launch new strangles is the $74.50-75.50 range. The options suggested were the September $80 calls (RFY-IP) and the September $70 puts (RFY-UN). Our estimated cost was $2.64. We want to sell if either option hits $6.00 or higher.

Picked on   August 25 at $ 75.56
Change since picked:      - 1.65
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


Schlumberger - SLB - close: 54.06 change: -0.85 stop: n/a

SLB is drifting lower through what should be support near $55.00-54.00 and a crowd of moving averages. I am not suggesting new strangle positions at this time but readers might want to consider directional call plays.

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:      + 2.06
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009         


CLOSED BULLISH PLAYS

EOG Res. Inc. - EOG - close: 69.92 change: -0.70 stop: 69.90

Crude oil continued to fall in spite of a dip in the U.S. dollar. Oil stocks were mixed but EOG managed to slip under the $70.00 level and hit our stop loss at $69.90. The next level of support for EOG is probably the 200-dma near $67.50 and after that the $65.00 level.

Previously: The plan was to trade small from the beginning to cutting our position in half now should leave us with a very small position.

Chart:

Picked on   August 26 at $ 73.25 /gap down entry point 
                               /listed at $73.98
Change since picked:      - 3.35<-- stopped @ 69.90 (-4.5%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       2.4 million  
Listed on August 22, 2009