CALL Play Updates

Ultra Oil & Gas ProShares - DIG - close: 35.66 change: +1.52 stop 31.95

The GDP report sent the dollar lower and oil rebounded. This fueled gains in the energy sector and the DIG rose 4.4%. We got our entry point yesterday. I'm a little hesitant to chase it here but you probably could open new positions now just make them smaller 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.

Picked on   October 28 at $ 34.20
Change since picked:       + 1.46
Earnings Date            00/00/00
Average Daily Volume =        4.3 million  
Listed on   October 17, 2009         


Gold ETF - GLD - close: 102.68 change: +1.95 stop: 97.40

The dollar's weakness also sent gold higher and the GLD erased yesterday's losses. Keep an eye on the $103 level short-term. If the GLD rolls over near there we could end up seeing a sharper correction. Personally I suspect the GLD will still correct toward the $100 level.

If we do see a dip near $100.00 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:       + 0.40
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


UltraShort Treasury ETF - TBT - close: 47.02 change: +0.99 stop: 43.90

The TBT bounced with a rise in bond yields. I remain bullish here. Currently the plan is to have half a position open. If the TBT Dips toward $45.50 we'll open the second half.

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:       - 0.87
Earnings Date            --/--/--
Average Daily Volume =        6.0 million  
Listed on   October 26, 2009         


Volatility Index - VIX - close 24.76 change: -3.15 stop: 21.90

The VIX reversed sharply as the market rallied. This could just be a short-term pull back but I'm not suggesting new bullish positions at this time.

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.

Picked on   October 24 at $ 23.06 /gap open entry
                            /originally listed at $22.27
Change since picked:       + 1.70
                            / 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: 43.08 change: -0.45 stop: 48.55

BIIB under performed the market. Shares fell to $41.75 intraday but pared their losses by the close. I am lowering our stop loss to $48.10. 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:       - 5.81
                               /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: 48.09 change: +1.26 stop: 51.25

An oversold bounce from the 100-dma is not a surprised. I warned readers yesterday to expect this. A failed rally in the $48-50 zone can be used as a new bearish entry point. 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:       + 0.72
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


DST Systems - DST - close: 42.70 change: +0.40 stop: 45.25

DST managed a 0.9% bounce but it wasn't very convincing. Shares produced an "inside day". Tomorrow will offer more clues to the short-term trend (which is currently down). I'm not suggesting new positions at this time. Our target to exit is $40.25.

Picked on   October 24 at $ 43.73
Change since picked:       - 1.03
Earnings Date            10/21/09 (confirmed)
Average Daily Volume =        462 thousand 
Listed on   October 24, 2009         


iShares Transports - IYT - close: 66.31 chg: +1.03 stop: 70.60

The transports were very short-term oversold. Today's 1.5% gain in the IYT is just that - an oversold bounce. This sector is still oversold so the bounce may not be over yet.

I'm not suggesting new positions at this time. IYT hit our first target on Wednesday. Our second target is $62.00.

Picked on   October 24 at $ 68.29
Change since picked:       - 1.98
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Life Tech. - LIFE - close: 48.68 change: +2.07 stop: 50.10

LIFE has been showing a lot of volatility the last few days and today was no exception. The stock opened at $45.83 and then managed a huge bounce off the $45.00 level (low was 45.05). Technically the move today is a bullish engulfing candlestick pattern.

I would wait for a failed rally under $50.00 before considering new bearish positions. The gap down this morning put us at a disadvantage with our entry point! I warned readers to expect a bounce near $45.00 or $44.00, which were levels of support.

Our target to take profits is at $41.00.

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 2.85
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009         


Netease.com - NTES - close: 38.49 change: +2.49 stop: 40.15

The big rally in NTES is a little surprising. The Chinese markets are sinking fast. This might suggests today's move is all short covering in the U.S. markets.

More conservative traders may want to seriously consider an early exit given today's short-term bullish breakout over the trend of lower highs. I am not suggesting new positions at this time.

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:       + 0.02
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on   October 17, 2009         


Research In Motion - RIMM - close: 61.36 change: +0.58 stop: 67.55

RIMM's bounce today was pretty anemic. The S&P 500 rose 2.2%. The NASDAQ rallied 1.8%. RIMM only gained 0.9% and never broke outside of yesterday's range.

If you're looking for a new entry point a failed rally near $65.00 could work well.

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

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 1.57
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009