CALL Play Updates

Alcon Inc. - ACL - close: 140.23 change: -0.06 stop: 129.49

The major indices continued to drift higher but ACL was stuck moving sideways near the $140 level. I would prefer to open new positions on a dip near $136 or $134. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       + 3.48
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 35.77 change: +0.90 stop: 30.99

Commodity stocks rallied and steel stocks displayed relative strength. ATI gained 2.5% and managed a new relative high before paring its gains. I'm not suggesting new positions at this time. ATI has already exceeded our first target. We're currently aiming for our second and final target at $37.00.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 5.52
                               /1st target hit @ 33.85 (+11.9%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


Best Buy Inc. - BBY - close: 38.32 change: -0.13 stop: 36.45

The bounce in BBY didn't see much follow through today. I would still consider new bullish positions in the $37.50-38.50 zone but I'd rather buy calls on the bounce instead of the dip. Our first target to take profits is at $41.40. Our second target 46.50. The Point & Figure chart is bullish with a $54 target.

Picked on September 21 at $ 38.45
Change since picked:       - 0.13
Earnings Date            12/16/09 (unconfirmed)
Average Daily Volume =        8.7 million  
Listed on September 21, 2009         


Caterpillar - CAT - close: 54.34 change: +1.88 stop: 47.49

CAT was very strong with a 3.5% gain. Shares are now testing their highs from last week. Unfortunately, our play isn't open yet. The plan is to buy calls at $50.00. We may want to raise our trigger a point or two.

If we are triggered at $50.00 our first target is $54.50. Our second target is $59.00. FYI: The P&F chart is bullish with an $85 target.

Picked on September xx at $ xx.xx <-- TRIGGER @ 50.00
Change since picked:       + 0.00
Earnings Date            10/20/09 (unconfirmed)
Average Daily Volume =         10 million  
Listed on September 19, 2009         


CF Industries - CF - close: 88.89 change: -0.13 stop: 84.75

CF is still trading sideways and I'm not convinced it's done correcting. I would prefer to buy calls on dips near $86.00. 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:       + 2.96
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 59.90 chg: +1.29 stop: 54.75

CMP rallied to a new six-month high at $60.45. I'm not suggesting new positions at this time. CMP has already hit our first target at $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:       + 4.35
                               /1st target hit @ 59.75 (+7.5%)
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Consol Energy - CNX - close: 49.28 change: +2.30 stop: 39.45

Coal stocks continued to show strength. CNX soared again adding 4.8%. I really don't want to chase it given the rally from its lows near $36.00 but I suspect CNX could keep going. For now I'm sticking to the plan to buy a dip but we'll raise the entry point from $42.50 to $44.00. If triggered our first target is $48.50. Our second target is $52.40. We'll plan to exit ahead of the late October earnings report. FYI: The Point & Figure chart is forecasting a $73 target.

Picked on September xx at $ xx.xx <-- TRIGGER 44.00
Change since picked:       + 0.00
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.0 million  
Listed on September 19, 2009         


Danaher Corp. - DHR - close: 68.33 change: +0.67 stop: 63.95

DHR gained 1% but I would still expect a correction before it climbed much higher. Keep an eye on the $65.00 region. Wait for the bounce before considering new positions. I'm upping our stop loss to $63.95. 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:       + 1.96
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 95.40 change: +2.22 stop: 88.49

The U.S. dollar plunged to new lows for the year and crude oil bounced. This gave the oil service stocks a lift and DO gained 2.3%. The plan was to use small position sizes.

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 15 at $ 94.69 *adjusted entry point
Change since picked:       + 0.71
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Flowserve - FLS - close: 100.86 change: +2.68 stop: 88.95

FLS is starting to run away without us. After a week of consolidating under resistance at $100 I was expecting a little more of a pull back. I'm upping our trigger to buy a dip from $92.50 to $95.00. More aggressive trades may want to go ahead and open small positions on this breakout over resistance.

If we are triggered our first target is $99.25. Our second target is $107.50. However, we will plan to exit ahead of the late October earnings report. FYI: The P&F chart is bullish with a $128 target.

Picked on September xx at $ xx.xx <-- TRIGGER @ 95.00
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        1.2 million  
Listed on September 19, 2009         


General Dynamic - GD - close: 63.86 change: +0.22 stop: 57.85

GD is still drifting sideways. We're waiting for a dip to buy calls at $61.00.

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         


Genesse & Wyoming - GWR - close: 31.94 change: +0.01 stop: 29.90

Nothing has changed. GWR is still sliding sideways. We've already taken profits once and our second target is $34.75. I am not suggesting new bullish positions at this time.

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:      + 3.29
                              /take profits 09/16/09 @ 32.45 (+13.2%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 90.87 change: +0.83 stop: 87.40

GWW almost completely erased yesterday's losses but the stock is still struggling under short-term resistance near $91.50. Our first target is $93.50. Our second target is $97.50.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 4.87
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


Intl. Bus. Mach. - IBM - close: 121.61 chg: +0.04 stop: 117.75

IBM is also drifting sideways. Odds are still good the stock will retest support near $120. I would look for dips near $120 as entry points. Our first target to take profits is at $126.00. Our second target is $129.75. We will plan to exit ahead of IBM's earnings report in mid October.

Picked on September 16 at $121.82
Change since picked:       - 0.21
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        5.3 million  
Listed on September 16, 2009         


iShares Financials - IYF - close: 54.07 change: +0.85 stop: 49.49

Financial stocks led the market higher thanks to a couple of key upgrades this morning. The IYF gained 1.59%. I would wait for a dip and a bounce from $52.00 or the $50.00 level before considering new bullish positions. Our first target is $57.00. Our second target is $60.00.

Picked on September 15 at $ 52.60 *triggered  
Change since picked:       + 1.47
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 90.98 change: -0.78 stop: 87.49 *new*

MTD is still slowly correcting and shares are nearing potential support near $90.00. Wait for a bounce before considering new positions. I am inching up our stop loss to $87.49. MTD has already hit our first target at $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:      + 2.48
                             /1st target hit @ 93.50 (+5.6%)
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Occidental Petrol. - OXY - close: 78.32 change: +1.23 stop: 74.75 *new*

The dollar drop and surge in oil helped push OXY to a 1.5% gain. OXY has exceeded our first target and I'm officially raising our second target from $79.85 to $82.50. I'm also raising the stop loss to $74.75. The P&F chart is bullish with a $92 target.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      + 6.32
                    /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: 60.12 change: +0.43 stop: 54.95

PPG set a new eleven-month closing high with today's move over $60.00. I'm not suggesting new positions at this time. PPG has already exceeded our first target and we're currently aiming for $63.00. The P&F chart is very bullish with a $90 target.

Picked on   August 28 at $ 55.65
Change since picked:      + 4.47
                             /1st target exceeded @ 60.05 (7.9%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


SPX Corp. - SPW - close: 64.12 change: +1.21 stop: 57.75 *new*

I'm starting to wonder if waiting for a dip in SPW is going to leave us on the sidelines too long. The stock continues to move sideways. I am raising our trigger to buy calls from $60.50 to $61.00. I'm also raising our stop loss to $57.75. If triggered our first target is $64.95. Our second target is $68.75.

Picked on September xx at $ xx.xx <-- TRIGGER @ 61.00
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        570 thousand 
Listed on September 12, 2009         


SOHU.com Inc. - SOHU - close: 68.29 change: -0.57 stop: 63.25

SOHU is still correcting. It looks like we could get triggered at $67.50 tomorrow. More conservative traders may want to hold out for a dip closer to $66.00.

Our first target is $72.50. Our second target is $77.00.

Picked on September xx at $ xx.xx <-- TRIGGER @ 67.50
Change since picked:       + 0.00
Earnings Date            10/26/09 (unconfirmed)
Average Daily Volume =        577 thousand 
Listed on September 15, 2009         


State Street (Bank) STT - close: 53.27 change: +1.01 stop: 49.45

After really under performing yesterday STT managed a 1.9% bounce. More conservative traders may still want to consider an early exit or a stop near $52.00. I'm not suggesting new bullish positions at this time.

STT has already hit our first target. 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:      + 1.27
                             /1st target hit @ 55.00 (+5.7%)
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 27.58 change: -1.01 stop: 27.49

Healthcare stocks under performed. The HMO index lost 1.1%. Shares of UNH really fell with a 3.5% decline and a close under its 50-dma. If we don't see a rebound soon I'll drop UNH as a bullish candidate.

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.

FYI: Readers may want to consider a strangle or a straddle on this stock instead. That way you don't care what direction it moves. Just make sure you give yourself enough time.

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: 36.98 change: +1.13 stop: 34.95

The U.S. dollar fell to new lows for the year and commodities rallied on the move. The USO rose more than 3% but failed to close over short-term resistance at $37.00.

Our first target is $39.95. Our second target is $42.50.

Picked on   August 31 at $ 36.50 
Change since picked:      + 0.48
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 55.76 change: -0.54 stop: 49.30

WAT experienced some profit taking today. Nothing has changed from my prior comment. We're still sitting on the sidelines waiting for a dip.

Currently the plan is to buy calls on a pull back at $53.50. If triggered our first target is $59.50. The P&F chart is bullish with a $69 target. We do not want to hold over the mid October earnings report.

Picked on September xx at $ xx.xx <-- TRIGGER 53.50
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: 31.31 change: -0.44 stop: n/a

Healthcare stocks slipped and CI gave up 1.3%. I would still consider new strangles on a dip in the $30.25-29.75 zone but readers may want to use November or January options instead.

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:       + 1.91
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009