CALL Play Updates

Teva Pharmaceutical - TEVA - close: 57.79 change: +0.21 stop: 54.95

Shares of TEVA saw a little bit of volatility this morning but spent most of the day churning sideways. I'm suggesting new positions now. You could wait for another dip or bounce near $56.00-56.60 as an entry point. More conservative traders may want to use a stop loss under last Friday's low, which was $55.88. This should be a short-term trade. TEVA reports earnings on Feb. 16th and we do not want to hold over the announcement. Our short-term target to take profits is at $59.50. Our second target is $61.50.

Entry  on  February 02 at $ 57.58 
Change since picked:       + 0.21
Earnings Date            02/16/10 (confirmed)
Average Daily Volume =        6.0 million  
Listed on  February 02, 2010         


Volatility Index - VIX - close: 21.67 change: +0.12 stop: 19.90

Lack of follow through on the market's two-day bounce caused a little bump in the VIX today. I'm still bullish but you can wait for a dip or a bounce closer to 20.00 to open positions. Our original plan called for March 30 calls. Our first target to take profits is at $29.50. Our second target is $34.00.

Entry  on   January 28 at $ 23.73 
Change since picked:       - 0.90
Earnings Date            --/--/--
Average Daily Volume =          x million  
Listed on   January 28, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 199.23 change: +3.37 stop: 216.00

I have been suggesting that readers use a bounce toward $200 or $205 as a new entry point to buy puts. AAPL delivered that bounce today with shares stalling under the $200 level. I wouldn't be surprised if AAPL sees some short-term strength tomorrow morning as investors react to the CSCO earnings tonight after the closing bell. However, any strength in AAPL should be temporary. Use today or a bounce tomorrow as a new entry point to buy puts.

We're going to give this trade lots of room with a wide stop since shares have been so volatile lately. Our first target to take profits is at $182.50. Our second target is $165.00 although we might exit at the 200-dma. This is an aggressive trade and I'm suggesting small positions.

FYI: I do think the iPad is going to be very successful for AAPL eventually. There was a story out today that a textbook company has already signed a deal with AAPL to provide textbooks on it.

Entry  on   January 28 at $201.08 (small positions)/gap open entry
Change since picked:       - 1.85
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Franklen Resources Inc. - BEN - close: 101.83 change: +0.04 stop: 106.80

BEN is still trying to bounce but stalled at the 10-dma today. I don't see any changes from my prior comments. If the market is going to bounce then wait for BEN to move into the $104-106 zone as a new entry point to buy puts.

Our target is $91.50. This is a slightly more aggressive trade and I'm suggesting smaller positions. FYI: BEN gapped open higher this morning affecting our entry point (and significantly changed our entry price on the March $95 puts).

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       + 2.24
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Gymboree - GYMB - close: 40.69 change: -0.11 stop: 42.75

Traders bought the dip in GYMB near $40 this morning. I have to admit that on a very short-term basis GYMB looks bullish. I am expecting shares to bounce toward $42.00 and its 50-dma. Wait for the bounce to stall or roll over before initiating new positions. Our first target is $35.50. Our second, longer-term target is $32.00. Consider using small positions to limit your risk.

Entry  on   January 23 at $ 39.74 
Change since picked:       + 0.95
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on   January 23, 2010         


Infosys Tech. - INFY - close: 53.20 change: +0.13 stop: 56.25

INFY still looks like it wants to bounce. I'm still expecting a rebound toward the 50-dma or the $54-55 zone. Wait for the bounce or wait for the bounce to roll over before initiating new put positions. Our first target is $50.15. Our second and final target is $46.50.

Entry  on   January 28 at $ 53.40
Change since picked:       - 0.20
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   January 25, 2010         


JPMorgan Chase - JPM - close: 40.29 change: -0.26 stop: 42.26

The early morning strength in JPM faded but shares remain above $40.00 and its 200-dma. My comments from yesterday still stand. I'm expecting a bounce toward the $41.50-42.00 zone. Look for the failed rally as our next entry point. Our first target to take profits is at $35.25. Our second target is $32.00.

Entry  on   January 26 at $ 38.44 
Change since picked:       + 1.85
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 60.20 change: -0.26 stop: 62.51

There wasn't much follow through in MCK's bounce. I don't see any changes from my prior comments. I'm suggesting bearish positions now but readers can look for the bounce to roll over in the $61-62 zone and use that as our next entry point to buy puts. The next level of support looks like the 200-dma down near $53.00. I am suggesting bearish positions now. Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       + 1.38
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


Retail Holders - RTH - close: 92.31 change: -0.70 stop: 95.05

There is no real change in the RTH. Shares are still consolidating sideways in what looks like a bear-flag pattern. You can try and time your entries by buying puts on a bounce near $93.50 or a breakdown under $91.00. More conservative traders may want to use a tighter stop loss closer to $94.00. Our first target is the $87.00 level. The 200-dma will probably be support. The RTH moves kind of slow so make sure you use an option that gives you enough time.

Entry  on   January 23 at $ 91.42 
Change since picked:       + 0.89
Earnings Date            --/--/--
Average Daily Volume =        1.7 million  
Listed on   January 23, 2010         


SIEMENS - SI - close: 91.24 change: -1.30 stop: 95.75

Shares of SI continue to drift sideways. I still believe the path of least resistance is down. However, CSCO's earnings news tonight could produce a pop for tech stocks tomorrow morning. A bounce or failed rally near $94 or $95 could be used as a new entry point for puts on SI.

The Jan. 22nd low was $87.38. Our first target to take profits is at $87.55. Our second target is $81.00. Our time frame is three to four weeks.

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 3.10
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010         


CLOSED BEARISH PLAYS

Mettler Toledo Intl. - MTD - close: 100.24 change: +2.14 stop: 100.15

Time was running out so we lowered our stop loss yesterday. Today MTD finally bounced and traded above the $100.00 mark hitting our stop loss at $100.15. The play is closed. I would keep MTD on your watch list to see how shares react following their earnings report tomorrow after the closing bell.

Chart:

Entry  on   January 22 at $ 99.40
Change since picked:       + 0.65 <-- stopped @ 100.15 (+0.06%)
Earnings Date            02/04/10 (unconfirmed) 
Average Daily Volume =        134 thousand 
Listed on   January 21, 2010