We had multiple trades hit our targets with today's market decline.


CALL Play Updates

Ultra Oil & Gas ProShares - DIG - close: 34.14 change: -2.29 stop 31.95

Crude oil sold off along with equities on Thursday. The DIG slipped toward support near $34.00 and its exponential 200-dma. This oil ETF hit our trigger to buy calls at $34.20 this afternoon. Our play is open. More conservative traders may want to wait for a bounce first before considering new bullish positions. Our first target is $39.50. Our second target is $43.50. I was suggesting the December calls. My preference was the $35 strike.

FYI: The DIG is an ultra-long ETF so it should have twice the volatility as a normal sector ETF.

Chart:

Picked on   October 28 at $ 34.20
Change since picked:       - 0.06
Earnings Date            00/00/00
Average Daily Volume =        4.3 million  
Listed on   October 17, 2009         


Gold ETF - GLD - close: 100.73 change: -1.12 stop: 97.40

The GLD is still correcting and is getting closer toward what should be support near $100.00. It's up to you, the reader, to decide on buying a dip or waiting for a bounce near the $100 level.

I would only buy January 2010 or longer-dated options as the GLD doesn't move very fast. Our first target is $109.90. We are still contemplating a second, longer-term target.

Picked on   October 06 at $102.28
Change since picked:       - 1.55
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


UltraShort Treasury ETF - TBT - close: 46.03 change: -0.47 stop: 43.90*new*

The TBT is pulled back for a second day. The low was $45.72. Our plan is to fill the second half of our position on a dip at $45.50. Please note that I am raising our risk a little by edging the stop loss down to $43.90 (from 44.40) to give us a little more room.

Our first target is $54.50. Our second target is $58.50. Our time frame is several weeks (possibly year end).

Note: This same trade in reverse is puts on the TLT. The TLT will go down as yields rise.

Picked on   October 26 at $ 47.89 (1/2 position)
Change since picked:       - 1.86
Earnings Date            --/--/--
Average Daily Volume =        6.0 million  
Listed on   October 26, 2009         


Volatility Index - VIX - close 27.91 change: +3.08 stop: 21.90 *new*

Target achieved. As the market continued to breakdown the volatility escalated. The VIX hit 27.94 this afternoon. Our first target to take profits was at 27.25. I am raising our stop to 21.90.

Our second target is $29.25. More aggressive traders may want to aim higher. I consider this an aggressive trade and suggest readers use small positions.

We want to use the December calls. These are European style options and are settled for cash. The December options expire on Wednesday, December 16th, 2009.

Chart:

Picked on   October 24 at $ 23.06 /gap open entry
                            /originally listed at $22.27
Change since picked:       + 4.85
                            / 1st target hit @ 27.25 (+18.1%)
Earnings Date            --/--/--
Average Daily Volume =         -- million  
Listed on   October 24, 2009         


PUT Play Updates

BIOGEN IDEC - BIIB - close: 43.53 change: -1.02 stop: 48.55

BIIB's oversold bounce has reversed and shares are hitting new relative lows. I'm not suggesting new positions at this time. BIIB has already surpassed our first target at $44.50. Our second and final target is $40.50.

Picked on   October 03 at $ 48.89
Change since picked:       - 5.36
                               /1st target hit @ 44.50 (-8.9%)
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        2.6 million  
Listed on   October 03, 2009         


Bank of Montreal - BMO - close: 46.83 change: -0.54 stop: 51.25

BMO extended its losses to four days in a row. Shares found some support at its rising 100-dma. I wouldn't be surprised to see a little oversold bounce. Look for a bounce or failed rally near $48 or $49 as a new entry point to buy puts. My earlier update suggested we could double down and buy the second half of our position on a failed rally near $50. Our first target is $42.75. Our second target is $40.50.

Picked on   October 27 at $ 47.37
Change since picked:       - 0.54
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


DST Systems - DST - close: 42.30 change: -1.14 stop: 45.25

DST lost 2.6% on the session and managed to close under support at its 100-dma and exponential 200-dma. This is good news for the bears. Our target to exit is $40.25.

Picked on   October 24 at $ 43.73
Change since picked:       - 1.43
Earnings Date            10/21/09 (confirmed)
Average Daily Volume =        462 thousand 
Listed on   October 24, 2009         


iShares Transports - IYT - close: 65.28 chg: -1.29 stop: 70.60 *new*

Target achieved. The transports have extended their losses to four in a row (and five out of the last six days). The IYT almost hit support near $65.00 and its 100-dma. The low today was $65.15. Our first target to take profits was at $65.25. This ETF is short-term oversold and due for a bounce. I'm not suggesting new positions at this time. Please note our new stop at $70.65.

Our second and final target is $62.00.

Chart:

Picked on   October 24 at $ 68.29
Change since picked:       - 3.01
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Netease.com - NTES - close: 36.00 change: +0.29 stop: 40.15

NTES traded sideways following yesterday's decline. I'm not suggesting new positions at these levels. More conservative traders may want to start taking profits now.

Our first target is $35.25. Our second target is $33.00, just above the exponential 200-dma. We want to exit ahead of the mid November earnings report. FYI: The P&F chart is bearish with a $25 target.

Picked on   October 17 at $ 38.47
Change since picked:       - 2.47
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on   October 17, 2009         


Research In Motion - RIMM - close: 60.78 change: -2.97 stop: 67.55

Our new put play in RIMM is now open. Shares broke down under their July lows. The stock actually gapped open at $62.93. Our trigger to buy puts was $62.99 so the play was opened this morning. I would not chase it here with potential round-number support at $60.00.

Our first target is $58.55. Our second target is $53.00. Currently the P&F chart is bearish with a $41 target.

Chart:

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 2.15
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009         


CLOSED BULLISH PLAYS

AvalonBay - AVB - close: 69.78 change: -2.96 stop: 71.90

AVB is still trading sideways but ended up losing 0.7% on the session. Tomorrow is our last day and we plan to exit at the closing bell to avoid earnings. Our upside target is $77.00.

Chart:

Picked on   October 08 at $ 72.60
Change since picked:       - 0.70 <-- stopped @ 71.90 (-0.9%)
Earnings Date            10/28/09 (confirmed)
Average Daily Volume =        1.8 million  
Listed on   October 07, 2009         



CLOSED BEARISH PLAYS

FUQI Intl. - FUQI - close: 19.26 change: -2.56 stop: 26.15

Target achieved! I wish all of our plays were this easy. FUQI conveniently broke down under support at $25.00 and immediately plunged more than 20% in two days. The low today was $19.14. Our target to exit was $20.50.

Chart:

Picked on   October 27 at $ 24.75
Change since picked:       - 4.25 <-- Target hit @ 20.50 (-17.1%)
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        1.3 million  
Listed on   October 26, 2009         


Psychiatric Solutions - PSYS - close: 18.67 change: -5.47 stop: 28.05

Look out below! PSYS reported earnings last night. Not only did the company miss lowered estimates but management warned again and lowered their guidance. The stock gapped open lower at $19.47 and hit $17.63 at its low today.

We had two targets to take profits. Our first target was $22.55. Our second target was $20.25. With PSYS opening at $19.47 this morning we would have exited 100% at the open.

FYI: My suggested option, the November 22.50 put, opened at $3.20 and closed at $4.80 today.

Chart:

Picked on   October 24 at $ 24.97, exit @ 19.47
Change since picked:       - 5.50 <-- gap down exit (-22.0%)
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        662 thousand 
Listed on   October 24, 2009