CALL Play Updates

Gold ETF - GLD - close: 103.95 change: +1.42 stop: 97.40

An early morning drop in the dollar boosted gold prices. The trend eventually reversed this afternoon but the GLD still managed a 1.3% gain. I've been suggesting that readers wait for a dip or a bounce near round-number support at $100.00 as our next entry point.

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:       + 1.67
Earnings Date            00/00/00
Average Daily Volume =       14.2 million  
Listed on   October 06, 2009         


UltraShort Treasury ETF - TBT - close: 46.00 change: +0.34 stop: 43.90

The TBT spent the session trading sideways. The MACD is starting to look increasingly more bearish. Traders may want to wait for a new move over $47.50 before launching positions.

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:       - 1.89

2nd entry on   October 30 at $ 45.50 (1/2 position)
Change since picked:          + 0.50

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


PUT Play Updates

BIOGEN IDEC - BIIB - close: 42.59 change: +0.46 stop: 47.25

The BTK biotech index delivered a strong bounce today (+2.9%). Shares of BIIB under performed with a 1.0% gain in spite of getting an upgrade this morning. I'm not suggesting new positions at this time. Our second and final target to exit is $40.50.

Picked on   October 03 at $ 48.89
Change since picked:       - 6.30
                               /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: 46.52 change: +0.15 stop: 51.25

Investors remain nervous about the financials. BMO is arguably short-term oversold. Readers may want to wait for the next failed rally to open bearish positions. Our first target is $42.75. Our second target is $40.50.

Picked on   October 27 at $ 47.37
Change since picked:       - 0.85
Earnings Date            11/24/09 (unconfirmed)
Average Daily Volume =        539 thousand 
Listed on   October 27, 2009         


UltraDow30 - DDM - close: 38.44 change: +0.62 stop: 41.26

The early morning rally in stocks had our put options gapping open lower. I'm not complaining since the rally reversed and the short-term trend remains lower. This morning was just a better entry point to open positions. I'm suggesting readers use small positions to limit risk.

Our first target is $35.25. The 100-dma near $35.00 could be technical support. I am considering a second target at $32.50 but for now we'll exit 100% at $35.25.

Picked on   October 31 at $ 37.82 (1/2 position size)
Change since picked:       + 0.62
Earnings Date            --/--/--
Average Daily Volume =        3.2 million  
Listed on   October 31, 2009         


DST Systems - DST - close: 41.80 change: +0.09 stop: 45.25

The bounce attempt in DST was pretty feeble. Shares barely closed positive. Yet I would still expect an oversold bounce if the S&P 500 can hold in the 1060-1030 zone. I'm not suggesting new positions at this time. Our target to exit is $40.25. More aggressive traders may want to aim a little lower.

Picked on   October 24 at $ 43.73
Change since picked:       - 1.93
Earnings Date            10/21/09 (confirmed)
Average Daily Volume =        462 thousand 
Listed on   October 24, 2009         


Intuitive Surgical - ISRG - close: 246.38 change: +0.03 stop: 261.00

If you were a bull betting on a bounce from ISRG's 50-dma you've got to be disappointed today. Shares rolled over under the $250 level after it gapped open higher at $248. The early morning strength provided a better entry point on our put options.

Remember, this is an aggressive trade. ISRG can be very volatile and options aren't cheap. I would use very small positions about 25% your normal trade size. Our first target is $226.00. Our second target is $202.00.

Picked on   October 31 at $246.35
Change since picked:       + 0.03
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        939 thousand 
Listed on   October 31, 2009         


iShares Transports - IYT - close: 64.26 chg: -0.45 stop: 70.60

The transports are growing more oversold. The close under its exponential 200-dma is bearish but the IYT looks overdue for a bounce.

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

Picked on   October 24 at $ 68.29
Change since picked:       - 4.03
                              /1st target hit @ 65.25 (-4.4%)
Earnings Date            --/--/--
Average Daily Volume =        664 thousand 
Listed on   October 24, 2009         


Life Tech. - LIFE - close: 47.58 change: +0.41 stop: 50.10

LIFE spent the session churning sideways. I still believe the stock is forming a top under the $50.00 level but I would keep position sizes small.

The $45 and $44 levels remain support but our target is $41.00.

Picked on   October 28 at $ 45.83 /gap down entry point 10/29/09
                              /originally listed at $46.61
Change since picked:       + 1.75
Earnings Date            10/27/09 (confirmed)
Average Daily Volume =        2.1 million  
Listed on   October 28, 2009         


Netease.com - NTES - close: 37.69 change: -0.93 stop: 40.15

It was a rocky session for NTES. The stock gapped open lower and dipped to $35.64 this morning. Shares managed to pared their losses and close down 2.4%. This is the second time in two weeks that NTES has bounced from the $35.50 region. I am not suggesting new positions. If NTES rises over $38.00 tomorrow we'll exit early at the closing bell.

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:       - 0.78
Earnings Date            11/12/09 (unconfirmed)
Average Daily Volume =        2.7 million  
Listed on   October 17, 2009         


Precision CastParts - PCP - close: 95.63 change: +0.10 stop: 100.55

The bounce in PCP was pretty anemic. I don't see any changes from my prior comments. I'm suggesting small positions about 50% your normal trade size. Our only target is $90.25. More aggressive traders may want to aim lower but I'm concerned about the trendline off the March lows, which could be strong support.

Picked on   October 31 at $ 95.53
Change since picked:       + 0.10
Earnings Date            10/20/09 (confirmed)
Average Daily Volume =        1.3 million  
Listed on   October 31, 2009         


Research In Motion - RIMM - close: 55.74 change: -2.99 stop: 65.05 *new*

This morning Citigroup downgraded RIMM to a "sell". The stock gapped open lower and fell to $54.30 intraday. Our second target to exit is $53.00 but readers may want to exit early right here anyway! I'm lowering our stop loss to $65.05.

I am not suggesting new positions at this time. I repeat - readers may want to take profits right here and exit early!

Picked on   October 28 at $ 62.93 /gap open entry    
Change since picked:       - 7.19
                               /1st target hit @ 58.55 (-6.9%)
Earnings Date            12/17/09 (unconfirmed)
Average Daily Volume =       17.9 million  
Listed on   October 26, 2009