CALL Play Updates

Freeport McMoran - FCX - close: 71.03 change: -0.55 stop: 65.85

FCX isn't making much progress. Traders did buy the dip this morning. I have to stress how aggressive this trade is. Yes, it looks like a potential double-bottom near its 200-dma but FCX is going to move based on commodities and they are going to move on the dollar. If Greece gets an aid package the euro should rally and the dollar should retreat, lifting commodities and thus FCX. EU leaders are holding a special summit on Thursday to discus the "economy", which might be code for "how do we get out of this Greek debt mess without tanking our currency?"

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:       + 0.80
Earnings Date            04/22/10 (unconfirmed)
Average Daily Volume =       20.6 million  
Listed on  February 06, 2010         


Teva Pharmaceutical - TEVA - close: 56.86 change: -0.24 stop: 55.75

TEVA is starting to act like it wants to go lower. Today appears to be a new lower high on a short-term basis. I am expecting another test of support near $56.00 and its 50-dma very soon. More conservative traders may want to exit early right here! I'm not suggesting new positions.

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:       - 0.72
Earnings Date            02/16/10 (confirmed)
Average Daily Volume =        6.0 million  
Listed on  February 02, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 195.11 change: -1.07 stop: 210.51

AAPL spent the session churning sideways still under technical resistance at its 10-dma and the 100-dma. The path of least resistance should be down! 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:       - 5.96
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Abbott Labs - ABT - close: 53.26 change: -0.09 stop: 55.05

Our new play in ABT is now open. We didn't have to wait long. Shares dipped to $52.67 this morning, hitting our trigger at $52.80. Shares did pare their losses but the rebound was starting to stall this afternoon. Now that the play is open our first target is $50.15. More aggressive traders can target the 200-dma or support near $48.00.

Correction: The option symbol I listed yesterday was incorrect. I'm suggesting the March $50 puts (symbol: ABT1020O50). The high today was $0.38. Last night I suggested the March $50 puts but listed the May 50 put symbol.

Chart:

Entry  on  February 10 at $ 52.80
Change since picked:       + 0.46
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        7.5 million  
Listed on  February 09, 2010         


Franklen Resources Inc. - BEN - close: 97.30 change: +0.08 stop: 106.80

BEN spent another day drifting sideways. Financials were some of the best performers today but BEN could not build on its gains. I don't see any changes from my prior comments. 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:       - 2.29
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


Goldman Sachs - GS - close: 153.63 change: +1.14 stop: 156.05

GS is also churning sideways but shares did manage a 0.7% gain. We are still waiting for a breakdown. 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: 41.82 change: -0.06 stop: 42.26

GYMB is still inching higher although shares closed down fractionally on Wednesday. I'm a little nervous given the stock's recent relative strength but so far $42.00 is holding as resistance. The high today was $42.11. Yesterday it was $42.16. 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:       + 2.08
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on   January 23, 2010         


Intl. Bus. Mach. - IBM - close: 122.81 change: -0.40 stop: 131.55

The consolidation in IBM is coiling more tightly and that suggests a breakout one way or the other is almost imminent. The trend of lower highs suggest the breakout will be down. More nimble traders may want to buy puts under $121.75. I'm concerned the 200-dma near $118.25 will be significant support.

Currently our plan is to buy puts at $127.75. 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: 53.11 change: -0.15 stop: 55.15

The high today was $53.60. Could the rebound already be running out of steam. I'm expecting the 50-dma to act as resistance near $54.20. Currently the plan is to buy puts again at $53.90. 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: 38.87 change: +0.48 stop: 41.65

Banks were bouncing but they were one of the few sectors in positive territory on Wednesday. JPM gained 1.25% but remains under resistance near $40.00 and its 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:       + 0.43
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 58.61 change: -0.14 stop: 62.51

MCK rebounded from its morning lows only to stall at its 10-dma. I would still consider new put positions now even though a bounce near $60 would be more attractive. Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       - 0.21
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


MEDCO Health Solutions - MHS - close: 61.96 change: +0.71 stop: 64.26

MHS outperformed the market with a 1.15% gain thanks to a broker upgrade this morning. Shares hit an intraday high of $62.56. Our plan was to buy puts at $62.75 so we are still on the sidelines. More aggressive traders may want to jump in now instead of waiting. The $64.00 level and the 50-dma should be overhead resistance. Use a bounce to $62.75 as an entry point. Our first target is $57.50.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 62.75 
Change since picked:       + 0.00
Earnings Date            02/23/10 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on  February 09, 2010         


Retail Holders - RTH - close: 91.08 change: -0.32 stop: 94.10

The bounce in the RTH is losing steam. I would still consider new positions here at current levels. Or if you think the market's bounce isn't over yet then look to open positions 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:       - 0.32
Earnings Date            --/--/--
Average Daily Volume =        1.7 million  
Listed on   January 23, 2010         


SIEMENS - SI - close: 86.43 change: -1.16 stop: 94.05

The oversold bounce in SI is already fading. Shares lost 1.3% but managed a bounce from its simple 200-dma.

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:       - 7.91
                            /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: 66.64 change: +0.12 stop: 69.05

UTX is still trying to bounce but it was stuck under its 10 and 100-dma today. There is no change from my prior comments. This move 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:       + 0.26
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 04, 2010