CALL Play Updates

Autozone Inc - AZO - close: 164.87 change: +4.02 stop: 154.95

Our new play on AZO is off to a strong start. Shares gapped open higher at $161.32 and quickly hit our trigger at $161.75. Our call play (March $165 calls) was triggered with the calls at $4.40 this morning. Sadly that is more expensive than I expected for our entry point since these calls closed at $3.00 on Friday. If you missed the entry point this morning consider waiting for a dip. Broken resistance in the $160-161.50 zone should be new support. FYI: Strong volume on today's rally is a good sign.

Our first target to take profits is at $167.50. I am adding a second, more aggressive target at $174.00 but that will require AZO to break through resistance in the $170 region.

Chart:

Entry  on  February 16 at $161.75 (small positions)
Change since picked:       + 3.12
Earnings Date            03/02/10 (unconfirmed)
Average Daily Volume =        538 thousand 
Listed on  February 13, 2010         


Freeport McMoran - FCX - close: 75.94 change: +2.26 stop: 71.95 *new*

Euro strength and dollar weakness fueled big gains for anything related to commodities. FCX gapped open higher at $75.62 but unfortunately spent the rest of the day churning sideways. The 50-dma has declined to $77.99 and the 100-dma is at $77.80. I am adjusting our second and final exit target down from $77.50 to $77.25. More aggressive traders may want to aim higher. I'm also moving our stop loss higher to $71.95.

Entry  on  February 06 at $ 70.23 
Change since picked:       + 5.71
                                /take profits now @ 74.17 (+5.6%)
Earnings Date            04/22/10 (unconfirmed)
Average Daily Volume =       20.6 million  
Listed on  February 06, 2010         


Wynn Resorts - WYNN - close: 64.91 change: +1.87 stop: 61.99

The bounce continues for shares of WYNN but the stock is still struggling with resistance near $65.00. I don't see any changes from my weekend comments. We want to use a trigger to buy calls at $65.51. If triggered at $65.51 our target is $71.90, just under the January highs. This is definitely an aggressive play with a short-term time frame and a volatile sector.

Don't forget that WYNN could be heavily influenced by LVS' earnings report on Feb. 17th.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 65.51 (small positions)
Change since picked:       + 0.00
Earnings Date            02/23/10 (unconfirmed)
Average Daily Volume =        2.2 million  
Listed on  February 13, 2010         


United States Steel - X - close: 51.14 change: +3.16 stop: 44.95 *new*

Commodity strength also fueled a rally for the steel makers. Shares of X gapped open at $49.23 (ouch) but kept rising to close with a 6.5% gain. I've adjusted our entry point and I'm also raising our stop loss to $44.95. Our first target to take profits is still $51.75. Our second target is $54.00. FYI: Thank goodness the option price didn't gap open too high. Our entry point is now $2.77 on the March $50 calls.

Entry  on  February 13 at $ 49.23 (small positions)/gap higher entry
Change since picked:       + 1.91
Earnings Date            04/27/10 (unconfirmed)
Average Daily Volume =       23.3 million  
Listed on  February 13, 2010         


PUT Play Updates

Apple Inc. - AAPL - close: 203.40 change: +3.02 stop: 210.51

The market strength is giving AAPL a boost with shares climbing 1.5% and closing above technical resistance at the 50-dma. Right now would be a good time to reconsider your risk tolerance. We were expecting a bounce and AAPL delivered a bounce. The question is does the bounce fail and where will it fail? AAPL should have resistance near $205 and there is also resistance near the $207.50 region. We knew this was going to be somewhat volatile and an aggressive trade so we left our stop loss wide. More conservative traders may want to consider an early exit or a tighter stop loss. I am not suggesting new positions at this time.

Our first target to take profits is at $182.50. Our second target is $165.00 although we might exit at the 200-dma. The plan was to use small positions to limit our risk.

Chart:

Entry  on   January 28 at $201.08 (small positions)/gap open entry
Change since picked:       + 2.32
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =         26 million  
Listed on   January 28, 2010         


Abbott Labs - ABT - close: 54.59 change: +0.66 stop: 55.05

Our bearish play in ABT may be in trouble. Today's rally lifted ABT above technical resistance at its 50-dma (in addition to its 21, 30, and 40-dma). Shares look poised to test the $55.00 level soon. If the market sees any follow through higher on Wednesday I would expect ABT to hit our stop loss.

Our first target was $50.15. More aggressive traders can target the 200-dma or support near $48.00.

Entry  on  February 10 at $ 52.80
Change since picked:       + 1.79
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        7.5 million  
Listed on  February 09, 2010         


Franklen Resources Inc. - BEN - close: 99.98 change: +2.12 stop: 105.26

European banking giant Barclays reported earnings this morning that were much stronger than anticipated and the news lifted the entire banking sector. Shares of BEN gapped open higher at $98.64 but merely traded sideways until late in the session. I have cautioned readers to look for possible resistance at $100 and its 50-dma (near $104.82). I'm not suggesting new bearish positions at this time. Our target to exit is $93.50.

Please note that if you have the February $95 puts I am moving the stop loss down to $100.26. We could get stopped out tomorrow.

Entry  on   January 30 at $ 99.59 /gap higher entry point (small positions)
Change since picked:       - 0.39 
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        1.2 million  
Listed on   January 30, 2010         


General Dynamics - GD - close: 69.85 change: +1.90 stop: 70.55

Uh-oh! We were expecting a bounce in GD this week but today's rebound appears to have broken the short-term trend of lower highs. GD should still have resistance at $70.00 but a close over $70.00 would too bullish and I would consider an early exit if we don't get stopped out at $70.55 on an intraday basis. Our official exit target is $62.60.

Entry  on  February 10 at $ 67.64
Change since picked:       + 2.21
Earnings Date            04/28/10 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on  February 10, 2010         


Goldman Sachs - GS - close: 157.40 change: +3.47 stop: 156.05

GS appears to have broken out from the very short-term consolidation but the stock is still trading inside its larger $150-160 trading range. We are still sitting on the sidelines since our trigger to buy puts is at $147.45. More nimble traders may want to consider a failed rally at the 50-dma/200-dma as a possible entry point. 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: 41.89 change: +0.13 stop: 42.26

I am ready to call it quits on GYMB but it looks like it's too late. Our Feb. $40 put has dwindled to nothing. Unfortunately odds are very high that we're going to get stopped out at $42.26 in the next day or two. No new positions at this time.

Entry  on   January 23 at $ 39.74 
Change since picked:       + 2.15
Earnings Date            03/04/10 (unconfirmed)
Average Daily Volume =        513 thousand 
Listed on   January 23, 2010         


Intl. Bus. Mach. - IBM - close: 125.23 change: +1.23 stop: 130.51

IBM is bouncing just as we expected. Shares broke through short-term resistance at $124 and they're headed for technical resistance at the 100-dma and the 50-dma. The 50-dma is currently at $128.00. I'm expecting IBM to struggle at this level, which is why our trigger to buy puts is at $127.00. More conservative traders may want to wait for a failed rally pattern first before launching positions. Please note I'm lowering our stop loss to $130.51. If triggered at $127.00 our first target is $122.00. Our second target is the 200-dma.

Entry  on  February xx at $ xx.xx <-- TRIGGER @ 127.00
Change since picked:       + 0.00
Earnings Date            04/20/10 (unconfirmed)
Average Daily Volume =        8.2 million  
Listed on  February 03, 2010         


JPMorgan Chase - JPM - close: 40.07 change: +1.12 stop: 41.65

The Barclays earnings news this morning fueled a strong rally for the banking sector. Shares of JPM gained 2.8% and managed to close just above round-number resistance at $40.00. Yet shares remain under their 200-dma. I would expect further resistance at the 50-dma near $41.20. Wait for the rebound to fail before considering new bearish positions. 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:       + 1.63
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =         46 million  
Listed on   January 26, 2010         


Mckesson Corp. - MCK - close: 59.88 change: +0.89 stop: 62.51

The rebound in MCK produced a 1.5% move but shares struggled with resistance near $60.00. I'm suggesting readers wait for a failed rally near its 50-dma (currently near $61.45) before launching new positions. Our first target to take profits will be $54.00.

Entry  on   January 30 at $ 58.82 
Change since picked:       + 1.06
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        2.8 million  
Listed on   January 30, 2010         


MEDCO Health Solutions - MHS - close: 63.07 change: +0.95 stop: 64.26

MHS is still inching higher and posted a 1.5% gain on Tuesday. I'm suggesting readers look for resistance near $64.00 and its 50-dma (near 63.65). Wait for the rally to fail before launching new positions. Our first target is $57.50.

Entry  on  February 11 at $ 62.75 
Change since picked:       + 0.32
Earnings Date            02/23/10 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on  February 09, 2010         


Retail Holders - RTH - close: 92.83 change: +1.29 stop: 94.10

The RLX retail index displayed strength today with a breakout over the 400 level and a breakout over its trend of lower highs. Although it's worth noting the rally did stall at its 50-dma. The RTH followed retail higher with a 1.4% gain and a close over its 100-dma. The RTH hit $93.02 this afternoon and over the weekend I suggested readers use a bounce or failed rally near $93 as a new entry point. 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:       + 1.41
Earnings Date            --/--/--
Average Daily Volume =        1.7 million  
Listed on   January 23, 2010         


SIEMENS - SI - close: 87.27 change: +2.21 stop: 92.05

Strength in the European markets fueled a 2.5% gain for SI. The stock managed to erase Friday's losses. Shares are somewhat oversold and could easily see a bounce back toward $90.00 or its 50-dma at $91.50. I strongly suggest that more conservative traders exit early now. I am not suggesting new positions at this time. SI has already hit our first target at $87.55. Our second and final target is $81.00.

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 7.07
                            /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: 66.33 change: +0.64 stop: 69.05

The rebound in shares of UTX seemed to under perform the rest of the market. The stock has resistance near $67.00 and again near $68.50. Wait for a new failed rally pattern before launching new positions. Our target to take profits is $61.00 near the rising 200-dma.

Entry  on  February 04 at $ 66.38 
Change since picked:       - 0.05
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 04, 2010         


CLOSED BEARISH PLAYS

Infosys Tech. - INFY - close: 55.49 change: +1.46 stop: 55.15

The market's rally fueled a big move in INFY. The stock gapped open higher above its 50-dma and hit our stop loss at $55.15 closing this trade. More nimble traders may want to look for a dip and consider aiming for the January highs near $59.00.

Chart:

-2nd Entry-
Entry  on  February 11 at $ 53.90
Change since picked:       + 1.25 <-- stopped out @ 55.15 (+2.3%)
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   January 25, 2010