CALL Play Updates

Apple Inc. - AAPL - close: 166.55 change: +1.37 stop: 163.40

AAPL garnered some positive broker comments this morning. Shares drifted sideways with the rest of the market but failed to see the steep last minute rally you see in the major averages. The jobs report will come out before the opening bell tomorrow. If it's good then AAPL will likely surge and we can buy the bounce. If the jobs number is bad then AAPL will probably breakdown and we'll be stopped out. 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:      + 0.05
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =        14 million  
Listed on August 25, 2009         


Allegheny Tech. - ATI - close: 29.21 change: +0.57 stop: 27.95

ATI continues to bounce. If the market reacts positively to the jobs data I'd buy calls on the bounce in ATI.

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:      - 1.04
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


Compass Minerals - CMP - close: 55.58 chg: +1.01 stop: 51.90

CMP continues to show relative strength and added another 1.8%. The stock hit our trigger to buy calls at $55.55. More conservative traders may want to raise their stop toward the $53.00 level. If the jobs number is bad CMP could easily reverse on us. Oour first target is $59.75. We can tentatively set a second target at $64.00. FYI: The Point & Figure chart has turned bullish with a $69 target.

Chart:

Picked on September 03 at $ 55.55
Change since picked:       + 0.03
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Goldman Sachs - GS - close: 161.66 change: +3.12 stop: 159.00

GS rebounded after yesterday's drop under $160. We are still waiting on a breakout higher. 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: 30.43 change: +0.58 stop: 28.90

The railroad sector performed well with the railroad index up 3.6%. Shares of GWR gained 1.9% and the bounce today looks like a new bullish entry point. As long as the jobs data is decent and investors don't sell the news then we can use today's bounce as a chance to buy calls again. More conservative traders may want to raise their stops toward today's low (29.50). 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:      + 1.77
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 87.17 change: +0.97 stop: 84.75

The rebound in GWW today also looks like a bullish entry point for calls. However, we'll have to wait and see how the market reacts to the jobs number tomorrow. More conservative traders might want to up their stops toward yesterday's and today's lows (near $85.60). Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 1.17
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


iShares Financials - IYF - close: 49.89 change: +1.03 stop: 44.90

Aggressive traders may want to consider buying calls on this bounce with a really tight stop under yesterday's low. I'm suggesting we stick to the plan and wait for a dip to $47.00. 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: 27.44 change: +0.72 stop: 25.95

LM is bouncing from its trendline of support. This looks like a new bullish entry point. Again, I know I'm repeating myself in these updates, but it all depends on the jobs data and how the market wants to interpret the report. 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:      - 2.06
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       3.4 million  
Listed on  July 25, 2009         


Mettler Toledo - MTD - close: 86.73 change: +0.20 stop: 84.99

MTD saw a strong last-hour bounce on Thursday. Readers could buy calls on the bounce, if the jobs report is positive, but more conservative traders can still wait for a new relative high. 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:      - 1.77
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Newmarket Corp. - NEU - close: 82.95 change: +0.47 stop: 79.00

NEU is still bouncing from support. I would use it as a new bullish entry point to buy calls as long as the jobs data is digested as positive news. 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:      - 1.38

Picked on September 1 at $ 80.50 *triggered 2nd half
Change since picked:      + 1.45
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       141 thousand 
Listed on August 24, 2009         


Occidental Petrol. - OXY - close: 71.99 change: +0.18 stop: 69.45

OXY under performed the market and its peers with a narrow, sideways session. I'd wait for a dip and bounce near $70.00 or a new move over $74.00 as an 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:      - 0.01
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009         


PPG Inds. Inc. - PPG - close: 54.11 change: +0.18 stop: 52.95

PPG is still honoring the very short-term trend of higher lows. I'd look for a new move over $55.00 as a bullish entry point. Our first target is $59.80.

Picked on   August 28 at $ 55.65
Change since picked:      - 1.54
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


State Street (Bank) STT - close: 50.81 change: +0.80 stop: 49.45

Banking stocks were some of the best performers today. STT dipped under $49.00 again but rallied from its 50-dma. The move today looks like a new bullish entry point for calls. However, we'll have to wait and see how the market interprets the jobs data.

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:      - 1.19
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 28.87 change: +0.21 stop: 27.49

There is no change from my prior comments. 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: 35.32 change: +0.14 stop: 34.49

Some of the commodities managed a bounce in spite of a rally in the dollar. This move in the USO looks like a new bullish entry point to buy calls. Our first target to take profits is at $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      - 1.18
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


PUT Play Updates

Apollo Group - APOL - close: 65.88 chg: +1.58 stop: 66.55

I'm starting to feel like a contrarian indicator for APOL. The bounce back to $65-66 wasn't totally unexpected but we need to see it roll over before launching new bearish positions. I'd wait for a new decline under the 100-dma near $64.60 as the trigger. 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:       + 2.25
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        1.9 million  
Listed on September 01, 2009         


First Solar - FSLR - close: 119.94 chg: +1.62 stop: 131.00

The oversold bounce in FSLR is stalling near the $120 level. If the jobs report is good and the market rallies we can expect FSLR to participate. More conservative traders may want to exit now to lock in a gain. 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:      -15.94
                               /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: 75.98 chg: +2.07 stop: n/a

It looks like RIMM is about to break higher. Remember we don't care what direction RIMM moves as long as it picks a direction. We have just over two weeks left. Readers may want to consider launching a strangle with October options instead. 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:      + 0.42
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


Schlumberger - SLB - close: 54.42 change: +0.35 stop: n/a

SLB spent the session hovering near $54.00 and its 100-dma. 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:      + 2.42
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009         


CLOSED BULLISH PLAYS

FISERV Inc. - FISV - close: 46.88 change: -0.40 stop: 46.60

FISV under performed the rest of the market. Shares marked their fifth decline in a row and broke down under support near $47.00. The stock hit our stop loss at $46.60.

Chart:

Picked on   August 21 at $ 48.60 *triggered         
Change since picked:      - 2.00<-- stopped out @ 46.60 (-4.1%)
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       1.5 million  
Listed on August 19, 2009