CALL Play Updates

Apple Inc. - AAPL - close: 173.72 change: +1.56 stop: 164.00

The market opened lower and AAPL followed but traders bought the dip at $170.25 for AAPL. Shares eventually closed in positive territory and look poised to head higher.

I'm not suggesting new positions at this time. AAPL has already hit our first target at $174.00. Our second and final 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:      + 7.22
                             /1st target hit @ 174.00 (+4.5%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =        14 million  
Listed on August 25, 2009         


Alcon Inc. - ACL - close: 134.56 change: -0.63 stop: 129.49

Hmm... we may have cause for worry here. ACL spiked lower with the wider market this morning. Yet while the S&P 500 rebounded into positive territory ACL did not. I suspect ACL will dip toward $132 and I'd wait for a bounce from that level to open new bullish positions. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       - 2.19
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 33.72 change: +0.23 stop: 29.85

ATI was very quick on the rebound this morning. I am not suggesting new bullish positions at this time but it looks like ATI might be in a new bullish channel. Thus we could see a new entry point on a dip in the $31.50-31.00 zone. ATI has already hit our first target at $33.85. Our second and final target is $38.00 but that might be a little too optimistic. ATI has produced an inverse (bullish) H&S pattern, which would suggest a $38 target but it could take a few weeks to get there.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 3.47
                               /1st target hit @ 33.85 (+11.9%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


CF Industries - CF - close: 87.25 change: -0.19 stop: 83.49

CF is still consolidating sideways. I'd use a dip near $85.00 to $84.00 as a new bullish entry point to buy calls. Our first target to take profits is at $92.50. Our second target is $98.00. FYI: The P&F chart has a quadruple-top bullish breakout buy signal with a $99 target.

FYI: Agrium (AGU) is trying to buy CF but CF keeps rejecting the offer calling it too late. At the same time CF is trying to buy Terra Industries (TRA) and TRA keeps rejecting the offer calling it too low. Eventually one of these companies is going to give up or they're finally going to make a big enough offer or somebody else might step in and start bidding. There is a risk that someone bids too much and the market could think they overpaid, which might push the stock lower. This M&A dance has been going on for months and it will probably continue for months so I'm not expecting it to have much short-term impact on the stock. However, it's worth noting that CF recently filed a lawsuit to force TRA to hold their annual shareholder meeting. This way CF can try and vote some members onto the board of directors.

Picked on September 05 at $ 85.93
Change since picked:       + 1.32
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 58.00 chg: -0.57 stop: 53.90

CMP seemed a little reluctant to bounce but finally began climbing late this afternoon. I don't see any changes from my weekend comments. A dip near $56 or $55 can be used as a new bullish entry point. Officially our first target to exit is $59.75. Our second and final target is $64.00. FYI: The Point & Figure chart has turned bullish with a $69 target.

Picked on September 03 at $ 55.55
Change since picked:       + 2.45
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Danaher Corp. - DHR - close: 67.94 change: +0.50 stop: 62.95 *

DHR recovered very quickly from the morning weakness and rallied to new highs on above average volume. I would wait for a dip back toward the $65-64 zone as a new entry point to buy calls. Our first target is $69.50. The Point & Figure chart is bullish with a $77 target.

Currently we only have half a position open to limit our risk given the aggressive entry point.

Picked on September 05 at $ 66.37 (buy 1/2 position)
               /originally listed at $65.76, gap higher entry @ 66.37
Change since picked:       + 1.57
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 94.10 change: +0.44 stop: 87.75

Weakness in crude oil didn't seem to impair the oil stocks today. Traders bought the dip in DO near $92.00. We have a buy the dip trigger to buy calls at $90.25 or a breakout trigger at $96.00. I'm suggesting small positions at least 1/2 to 1/4 your normal trade.

We will take some money off the table at $99.90 (1st target). Our second target is $104.50. More aggressive traders can aim for $110. The P&F chart is forecasting a $114 target.

Picked on September xx at $ xx.xx <-- TRIGGER @ 96.00 or $90.25
Change since picked:       + 0.00
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Factset Research - FDS - close: 60.55 chg: +0.44 stop: 54.90

FDS produced another close over round-number resistance at $60.00. The action is bullish but the stock remains short-term overbought. I'd wait for dips near $57.50 before considering new bullish positions.

Our first target is $62.00. Our second target is $64.75. The point and figure chart is bullish with a $76 target. Please note that FDS is due to report earnings on September 22nd and we'll plan to exit the day before the company announces.

Picked on September 08 at $ 57.55
Change since picked:       + 3.00
Earnings Date            09/22/09 (confirmed)
Average Daily Volume =        331 thousand 
Listed on September 05, 2009         


Fedex - FDX - close: 78.88 change: +1.56 stop: 71.75 *new*

FDX continues to show relative strength. The stock did not suffer much weakness this morning and closed at new highs. Our second and final target is $79.75. I'm upping our stop loss to $71.75.

Picked on September 04 at $ 70.55 *triggered
Change since picked:       + 8.33
                  /1st target exceeded, gap higher @ 75.95 (+7.6%)
Earnings Date            09/17/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on September 03, 2009         


General Dynamic - GD - close: 63.10 change: -0.24 stop: 57.85 *new*

We've been waiting for a dip near what should be support for GD but shares have been showing strength with traders buying dips rather quickly. I am upping our trigger to buy calls from $60.50 to $61.00. I'm raising our stop loss to $57.85.

Our first target is $64.90. Our second target is $69.00. Investors with a longer-term time frame may want to aim a lot higher. GD has produced an inverse H&S pattern that is forecasting an $85

Picked on September xx at $ xx.xx <-- TRIGGER @ 61.00
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        2.3 million  
Listed on September 09, 2009         


Goldman Sachs - GS - close: 177.71 change: +3.01 stop: 164.90 *new*

GS continues to show relative strength. The stock dipped t $173.16 and then rallied to a new closing higher for the year. I am raising our stop loss to $164.90. Our first target to take profits is at $179.00. Our second target is $184.00. The $185-190 zone looks like potential resistance.

FYI: The Point & Figure chart is bullish with a $228 target. Remember, we want to trade small position sizes.

Picked on September 8 at $166.75
Change since picked:      +10.96
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       8.8 million  
Listed on August 29, 2009         


Genesse & Wyoming - GWR - close: 32.41 change: +0.55 stop: 28.90

GWR found short-term support at its 10-dma this morning. The stock displayed relative strength by closing with a 1.7% gain. Our first target is $32.90. More conservative traders may want to take profits now. I'm not suggesting new positions. Our second and final target is $34.75.

FYI: We want 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:      + 3.75
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 89.30 change: +0.66 stop: 84.75

GWW bounced from the $88.00 level again. If you're looking for an entry point another bounce from its rising 50-dma near $87.00 or a breakout over $90.35 can be used as an entry. Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 3.30
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


iShares Financials - IYF - close: 52.09 change: +0.65 stop: 49.49

Investors were buying the dip in financials and the IYF found support near its 10 and 20-dma. This ETF is now testing resistance at its August highs. Our trigger to buy calls is at $52.60. We want to use very small positions given the aggressive nature of the entry point. If triggered our first target is $57.00. Our second target is $60.00.

Picked on September xx at $ xx.xx <-- TRIGGER @ 52.60
Change since picked:       + 0.00
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 90.22 change: +0.65 stop: 84.99

MTD's close over round-number resistance at $90.00 is a positive sign. 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:      + 1.72
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Newmarket Corp. - NEU - close: 88.65 change: +0.39 stop: 81.45

I don't see any changes from my weekend comments. If NEU does correct I'd watch for short-term support near $84.00. Our second and final target is $92.50. More aggressive traders can aim for $99. 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:      + 4.57
                               /take profits @ 87.97 (+4.3%)

Picked on September 1 at $ 80.50 *triggered 2nd half
Change since picked:      + 8.40
                               /take profits @ 87.97 (+9.2%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       141 thousand 
Listed on August 24, 2009         


Occidental Petrol. - OXY - close: 76.99 change: +0.02 stop: 71.90

Oil stocks managed a gain in spite of weakness in crude. I'm not suggesting new bullish positions at this time. Our second and final target is $79.85. More aggressive traders could aim for the $83-84 zone.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      + 4.99
                    /1st target exceeded, gap higher @ 77.23 (+7.2%)
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009         


PPG Inds. Inc. - PPG - close: 57.91 change: +0.61 stop: 52.95

PPG has closed at new highs for the year. If there is one complaint it would be lack of volume behind the move. More conservative traders may want to raise their stops a bit. Our first target is $59.80. I am adding a secondary target at $63.00.

Picked on   August 28 at $ 55.65
Change since picked:      + 2.26
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


SPX Corp. - SPW - close: 64.72 change: +1.20 stop: 57.25

The "multi-industry" group was upgraded again and SPW rallied another 1.8% for its seventh gain in a row. Shares are overbought. I am suggesting traders buy calls on a dip at $60.50. If triggered our first target is $64.00. Our second target is $67.50.

Picked on September xx at $ xx.xx <-- TRIGGER @ 60.50
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        570 thousand 
Listed on September 12, 2009         


State Street (Bank) STT - close: 53.30 change: +0.57 stop: 49.45

Traders bought the dip in STT near $52.00. Readers may want to wait for a new relative high as an entry point (maybe $54.25 or $54.85, aim for the second target).

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:      + 1.30
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 28.76 change: -0.31 stop: 27.49

There is no change from my prior comments on UNH. Readers may want to try a strangle or straddle on UNH. That way you don't care what direction it goes. Right now the plan is to buy calls on a breakout with a trigger 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 once triggered.

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         


Union Pacific - UNP - close: 62.78 change: +0.23 stop: 59.40

At this point in time I'd wait for a new rise over $63.00 or a dip and bounce from $60.00 before launching new call positions on UNP. Our first target is $69.00. FYI: The P&F chart is currently bullish with an $88 target.

Picked on September 09 at $ 63.00
Change since picked:       - 0.22
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on September 05, 2009         


U.S. Oil Fund - USO - close: 35.71 change: -0.11 stop: 34.49

The USO has come very close to filling the gap from Tuesday, September 8th. This oil ETF is also testing its long-term rising trendline of support near its 100-dma. Thus this pull back is a new bullish entry point but readers may want to wait for a new bounce over $36.00 before launching positions. The dip may not be over yet and the USO may still test $35.00 soon.

Picked on   August 31 at $ 36.50 
Change since picked:      - 0.79
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 54.40 change: -0.21 stop: 49.30

WAT did see some profit taking on Monday but not enough. I'm suggesting readers buy calls at $53.10. We'll use a stop loss under the bottom of the trading range. If triggered our first target is $59.50.

Picked on September xx at $ xx.xx <-- TRIGGER 53.10
Change since picked:       + 0.00
Earnings Date            10/20/09 (unconfirmed)
Average Daily Volume =        809 thousand 
Listed on September 12, 2009         


PUT Play Updates

*Currently we do not have any put play updates*


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.)

Cigna Corp. - CI - close: 32.08 change: +0.75 stop: n/a

CI is still showing relative strength and closed at new 2009 highs. I'm not suggesting new strangle positions at this time unless the stock retests the $30.00 region.

The options I suggested were the October $35 calls (CI-JG) and the October $25 puts (CI-VE). Our estimated cost was $1.20. We want to sell if either option hits $2.50 or higher. The closer we can open this trade to $30.00 the better.

Picked on September 08 at $ 29.40
Change since picked:       + 2.68
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009         


Research In Motion - RIMM - close: 81.41 chg: +2.04 stop: n/a

RIMM's breakout past $80.00 is certainly bullish. We only have four days left before September options expire. The good news is that the $80 calls are now in the money and trading around $2.40. If you were looking to recapture your trading capital you might get a chance tomorrow. I'm not suggesting new positions at this time.

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:      + 3.81
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


Schlumberger - SLB - close: 59.81 change: -0.58 stop: n/a

Hopefully oil will stop falling long enough for the oil service stocks like SLB to rally to new highs. We have four days left before September options expire. I'm not suggesting new strangle positions.

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:      + 7.81
Earnings Date           10/15/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 15, 2009