CALL Play Updates
Joyg Global - JOYG - close: 49.63 change: -4.42 stop: 48.90
The sell-off in materials and mining stocks accelerated on Friday. Shares of JOYG gapped open lower at $52.10 and plunged through its 100-dma. There was an intraday bounce but that failed near the open and JOYG traded under its trendline of support and the $50.00 level. The low was $49.14. Friday's close under $50.00 is certainly bearish and if there is any follow through on Monday we'll get stopped out at $48.90. However, JOYG is now short-term oversold with a 20% correction in just three days. There is a decent chance that JOYG bounces on Monday.
Our trade was opened when JOYG hit our trigger at $50.50. Our first target is $54.75. Our second target is $59.00. We do not want to hold over the early March earnings report.
At this time I would wait for a bounce over $51.00 before launching new positions. I'm suggesting the April $55 calls (JQY-DK).
Entry on January 22 at $ 50.50
Change since picked: - 0.87
Earnings Date 03/03/10 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on January 19, 2010
PUT Play Updates
Mettler Toledo Intl. - MTD - close: 98.78 change: -1.39 stop: 102.25
Our new play on MTD has been opened. When the market began to accelerate lower into the closing bell MTD finally hit our trigger to buy puts at $99.40. Now that the play is open our first target is $95.25. Our second target is $90.50.
Our time frame is a couple of weeks. We do not want to hold over the early February earnings report. I would still consider new positions here.
I am suggesting the February puts. My preference is the $95 strike (MTD-NS). The spreads are a little bit wide, which makes this a slightly more aggressive trade.
Entry on January xx at $ xx.xx <-- TRIGGER @ 99.40
Change since picked: + 0.00
Earnings Date 02/04/10 (unconfirmed)
Average Daily Volume = 134 thousand
Listed on January 21, 2010
CLOSED BULLISH PLAYS
Apple Inc. - AAPL - close: 197.75 change: -10.32 stop: 203.99
It's getting pretty ugly out there and the prospect of AAPL's earnings report next week was not enough for investors to hold this stock. Shares gapped open lower at $206.78 and quickly fell through support at its 50-dma and then through round-number support at the $200.00 mark. Our stop loss was hit at $203.99 closing this play. This was an aggressive bullish trade and the plan was to use small positions (1/4 to 1/2 your normal trade size).
Entry on January 13 at $210.65
Change since picked: - 6.66 <-- stopped out @ 203.99 (-3.1%)
Earnings Date 01/25/10 (confirmed)
Average Daily Volume = 17.1 million
Listed on January 13, 2010
3M Co. - MMM - close: 81.48 change: -1.22 stop: 83.40
Our plan was to drop MMM as a bullish candidate if we didn't see a bounce on Friday. The stock has not yet hit our trigger to open positions.
Entry on January xx at $ xx.xx <-- TRIGGER @ 85.25
Change since picked: + 0.00 *never opened*
Earnings Date 01/28/10 (confirmed)
Average Daily Volume = 3.1 million
Listed on January 20, 2010
TORO Co. - TTC - close: 40.53 change: -1.64 stop: 41.40
The market's widespread decline pushed TTC through significant support and shares closed with a 3.8% loss. Our stop loss was hit at $41.40 early in the session. TTC is now testing the next level of support near $40.00 and its 100-dma.
Entry on January 07 at $ 42.60 (small positions)
Change since picked: - 1.20 <-- stopped @ 41.40 (-2.8%)
Earnings Date 02/18/10 (unconfirmed)
Average Daily Volume = 289 thousand
Listed on January 05, 2010
CLOSED BEARISH PLAYS
Green Mtn Coffee - GMCR - close: 81.16 change: +1.24 stop: 82.55
There is no explanation for GMCR's relative strength today. Shares broke down to new relative lows, hit our trigger to buy puts at $78.45, and then rallied. Not only did shares bounce but they hit our stop loss at $82.55. We knew GMCR was a volatile stock and that's why I labeled it an aggressive trade but this sort of bounce on Friday was very surprising.
Entry on January 22 at $ 78.45
Change since picked: + 4.10 <-- stopped @ 82.55 (+5.2%)
Earnings Date 01/28/10 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on January 21, 2010