CALL Play Updates

Freeport McMoran - FCX - close: 71.58 change: +2.38 stop: 65.85

Commodity stocks bounced on Tuesday. News that there might be a bailout for Greece sent the euro rising and the dollar sliding. Dollar weakness fueled a big bounce for commodities and stocks like FCX rallied. The stock hit $72.95 intraday before paring its gains. Remember, we are trying to catch a short-term bounce in FCX. Shares do have significant resistance overhead. I remain very cautious here. The Greece news could go either way. It's a very fluid situation. Early this morning there was news of an aid package. By late this afternoon it was being denied. What we do know is that EU leaders are holding a special summit on Thursday to discus the "economy".

We want to use small positions. Out first target to take profits is at $74.75. Our second target is the 100-dma near $77.50.

Entry  on  February 06 at $ 70.23 
Change since picked:       + 1.35
Earnings Date            04/22/10 (unconfirmed)
Average Daily Volume =       20.6 million  
Listed on  February 06, 2010         


Teva Pharmaceutical - TEVA - close: 57.10 change: +0.18 stop: 55.75 *new*

The bounce in TEVA was pretty tepid. My enthusiasm for this trade is cooling. I'm raising our stop loss to $55.75, which is just under the rising 50-dma. 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:       - 0.48
Earnings Date            02/16/10 (confirmed)
Average Daily Volume =        6.0 million  
Listed on  February 02, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 196.19 change: +2.07 stop: 210.51

The market produces a widespread bounce and AAPL struggles to gain 1%. This is not a bullish performance. Shares remain under technical resistance at the 10-dma. I remain bearish. It's up to you if you want to launch positions now or wait for a potentially better entry point on a bounce or failed rally near $200 or its 50-dma (near $202). More conservative traders may want to lower their stops closer to $206.

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:       - 4.89
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Franklen Resources Inc. - BEN - close: 97.22 change: +0.92 stop: 106.80

BEN spent most of the session churning sideways in a narrow range. The path of least resistance should be down. Look for short-term resistance near $100. If that breaks then the $104-105 zone. Our target to exit is $92.50.

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       - 2.37
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Goldman Sachs - GS - close: 152.49 change: +1.39 stop: 156.05

GS briefly traded under the $150.00 level but reversed higher at $149.65. Shares still look vulnerable. I don't see any changes from yesterday's play description. I am suggesting a trigger to buy puts at $147.45. If triggered our first target to take profits is at $138.00.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 147.45
Change since picked:       + 0.00
Earnings Date            04/13/10 (unconfirmed)
Average Daily Volume =         17 million  
Listed on  February 00, 2010         


Gymboree - GYMB - close: 41.88 change: +1.12 stop: 42.26

GYMB continues to show relative strength. Today's 2.7% gain produced a rally past its 200-dma and its 50-dma. The high today was $42.16. I've been suggesting that the $42.00 level will be resistance. This is it. If there is any follow through higher we'll be stopped out at $42.26. I am not suggesting new bearish positions at this time. 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:       + 2.14
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on   January 23, 2010         


Intl. Bus. Mach. - IBM - close: 123.21 change: +1.33 stop: 131.55

The intraday bounce failed near its 10-dma. This is short-term bearish with another new lower high. Nimble traders may want to consider new put positions on a drop below $121.75. I'm suggesting we stick with the plan and use a trigger to buy puts at $127.75 (under the 50-dma). If triggered at $127.75 our first target is $122.00. Our second target is the 200-dma.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 127.75
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: 53.26 change: +2.14 stop: 55.15

INFY gapped open higher and posted a 4.1% gain. The Indian market was up today but it wasn't up that much and I couldn't find any company specific news behind today's relative strength in INFY. I'm expecting this oversold bounce to fail at resistance near $54.00 and its 50-dma. We are moving our trigger to buy puts again down from $54.50 to $53.90. Currently the plan is to open new put positions on a bounce to $54.50. If triggered on this new trade we'll take profits again at $50.15 and $46.50.

We want to use the March $50 puts.

-2nd Entry-
Entry  on  February 00 at $ 00.00 <-- trigger @ 54.50
Change since picked:       - 0.00

-1st Entry Closed-
Entry  on   January 28 at $ 53.40
Change since picked:       - 2.47 <-- early exit @ 50.93 (-4.6%)
                            /1st target hit @ 50.15 (-6.0%)
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   January 25, 2010         


JPMorgan Chase - JPM - close: 38.39 change: +0.69 stop: 41.65

JPM produced a 1.8% gain but the trend is still down. Look for this bounce to fail near $40.00 and the 200-dma. 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:       - 0.05
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 58.75 change: +0.44 stop: 62.51

MCK managed a 0.75% gain versus the 1.3% bounce in the S&P 500. Look for resistance near $60.00 or the 50-dma (near $61.50). Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       - 0.07
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


Retail Holders - RTH - close: 91.42 change: +0.82 stop: 94.10

The oversold bounce in the retailers has brought us back to unchanged for the RTH. The trend of lower highs should hold. Readers can open positions here or look for a bounce near the 50-dma near $93.50. 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:       - 0.00
Earnings Date            --/--/--
Average Daily Volume =        1.7 million  
Listed on   January 23, 2010         


SIEMENS - SI - close: 87.59 change: +2.79 stop: 94.05

A very widespread bounce in Europe helped fuel a 3.2% gain in SI. The stock should find some short-term resistance near $90.00 and its 50-dma near $92.50. Nimble traders could try opening new put positions on a failed rally near either resistance level.

Our second and final target is $81.00. More aggressive traders may want to aim lower.

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 6.75
                            /1st target hit @ 87.55 (-7.1%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010         


United Technology - UTX - close: 66.52 change: +1.12 stop: 69.05

The oversold bounce in UTX has failed near its 10-dma and 100-dma. This could be used as a new entry point but a failed rally near $68 would be more attractive. Our target to take profits is $61.00, just above the simple 200-dma. Our time frame is just two or three weeks.

Entry  on  February 04 at $ 66.38 
Change since picked:       + 0.14
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 04, 2010