CALL Play Updates

Teva Pharmaceutical - TEVA - close: 57.92 change: +0.13 stop: 54.95

Somehow TEVA avoided the market sell-off on Thursday. Shares managed to post a gain after traders bought the dip at the 30-dma. I remain bullish on TEVA but I would hesitate to open positions with the market crumbling. 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:       + 0.34
Earnings Date            02/16/10 (confirmed)
Average Daily Volume =        6.0 million  
Listed on  February 02, 2010         


Volatility Index - VIX - close: 25.80 change: +4.48 stop: 19.90

The VIX exploded higher as investors reacted to the widespread global stock market weakness. Today's 20.7% rise in the VIX leaves it testing the 200-dma. 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:       + 2.07
Earnings Date            --/--/--
Average Daily Volume =          x million  
Listed on   January 28, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 192.05 change: -7.18 stop: 210.51 *new*

AAPL's bounce toward $200 yesterday proved to be a good entry point. The stock has reversed again with today's 3.6% decline in spite of an analyst upgrade this morning.

I am adjusting the stop loss down to $210.51. 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.

Entry  on   January 28 at $201.08 (small positions)/gap open entry
Change since picked:       - 9.03
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Franklen Resources Inc. - BEN - close: 98.28 change: -3.55 stop: 106.80

Financial stocks were some of the worst performers on Thursday. BEN spiked to $103.41 this morning and quickly reversed. Shares closed on their lows and look poised to keep falling.

Our target is $91.50. This is a slightly more aggressive trade and I'm suggesting smaller positions.

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       - 1.31
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Gymboree - GYMB - close: 40.82 change: +0.13 stop: 42.75

GYMB managed to buck the trend today with a small gain after pre-announcing stronger than expected earnings. The company doesn't actually report until early March but management guided higher by a few cents. I am still expecting a failed rally under $42.00. 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:       + 1.08
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on   January 23, 2010         


Intl. Bus. Mach. - IBM - close: 123.00 change: -2.66 stop: 134.05

The CSCO-inspired bounce in tech stocks did not show up. It was high-jacked by worries of sovereign debt default. Shares of IBM gapped open lower and fell 2.1%. More aggressive traders may want to go ahead and chase this move and just move your stop loss down. I do not want to chase this move. We'll wait for another bounce. Our trigger to buy puts is still $128.50. More conservative traders may want to consider a tighter stop loss. If triggered at $128.50 our first target is $122.50. Our second target is the 200-dma.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 128.50
Change since picked:       + 0.00
Earnings Date            04/20/10 (unconfirmed)
Average Daily Volume =        8.2 million  
Listed on  February 03, 2010         


Infosys Tech. - INFY - close: 50.69 change: -2.51 stop: 55.05 *new*

INFY gapped open lower at $52.34 and closed on its low for the session with a 4.7% decline. The stock has broken technical support at its rising 100-dma. Odds are pretty good INFY will hit our first target to take profits at $50.15 tomorrow. I am lowering our stop loss down to $55.05. Our second and final target is $46.50.

Entry  on   January 28 at $ 53.40
Change since picked:       - 2.71
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   January 25, 2010         


JPMorgan Chase - JPM - close: 38.35 change: -1.94 stop: 41.65 *new*

Banks stocks were hit pretty hard with most of the banking indices losing about 4%. JPM fell 4.8%. This looks like a new entry point for bearish positions. I am lowering our stop loss down to $41.65. 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:       - 0.09
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 58.60 change: -1.60 stop: 62.51

MCK has rolled over under its 10-dma. This looks like another 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:       - 0.22
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


Retail Holders - RTH - close: 90.32 change: -1.99 stop: 95.05

Several of the major retailers announced better than expected January sales today. Yet the good news was lost to the wave of fear over European debt default. The RTH lost 2.1% and has broken down from its bear-flag pattern. 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:       - 1.10
Earnings Date            --/--/--
Average Daily Volume =        1.7 million  
Listed on   January 23, 2010         


SIEMENS - SI - close: 86.29 change: -4.95 stop: 95.75

Target achieved. European markets crumbled as investors worried about potential debt defaults from Greece, Portugal and Spain. Shares of SI gapped open lower at $87.75, hit our first target at $87.55 and kept right on falling for a 5.4% loss on the session. I am lowering our stop loss down to $94.05. I would expect a bounce from the simple 200-dma near 84.85. Our second and final target is $81.00. More aggressive traders may want to aim lower.

Chart:

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 8.05
                            /1st target hit @ 87.55 (-7.1%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010