Editor's Note:

I screwed up! I forgot to include the new plays from Sunday in the Monday update. It did not take but 30 minutes before astute readers were emailing me and politely calling my attention to that error. I made sure tonight that the update was complete although there were a couple of plays I wish I could have left out.

We were stopped on Siemens and the FXA. With the currency market whipping about like a leaf in a hurricane it is tough to play currencies with options. The intraday swings are too violent and the long term moves too slow.


CALL Play Updates

MYGN - Myriad Genetics - $23.80, stop $22.50 *NEW*

Why We Like It:
Myriad posted profits that increased +67% in early February. The beat the street by 2-cents, saw their stock shoot up to nearly $26 and then implode to trade under $21 two weeks later. The selling appears to be over and the stock is ramping back up to retest that $26 level. Myriad will host an investor day in New York on Wednesday and unveil several new products.

Nice two day run to extend the rally. No complaints here!

Exit Target = $25.00

Position: CALL MAY 25.00 (MYGN 10E2500) @ $1.05

Entry  on  March 1st at $ 23.01 
Change since picked:       + 0.79
Earnings Date            02/3/10 
Average Daily Volume =  1.62   million  
Listed on  February 28, 2010         


BUCY - Bucyrus International - $63.18, Stop $61.00 *NEW*

Why We Like It:
On their earnings conference call the company said they were seeing a strong pickup in demand and improving. Earnings were up +21% to $1.07 and beat the consensus of 92-cents. Earnings were on the 18th and there was the obligatory post earnings decline but investors quickly bought the dip.

BUCY and JOYG, both mining equipment makers, traded lower on Tuesday despite the rest of the coal sector seeing nice gains. I wonder if the rumor of an acquisition in the space means there will be one less customer?

Exit Target = $68.00

Position: CALL APR 65.00 (BUCY 10D6500) @ $3.82 

Entry  on  March 1st at $ 62.56 
Change since picked:       + 0.62
Earnings Date            02/18/10 
Average Daily Volume =  1.75   million  
Listed on  February 28, 2010         


VMW - VMWare - $50.95 *Not Triggered*

Why We Like It:
VM Ware is taking over computing. The rush to virtualize to obtain maximum use of all your servers is revolutionizing the data center. IDC believes only 20% of datacenters are fully converted leaving a whopping 80% as a growing market. As corporations enter the Windows 7 upgrade cycle they will be building out their server farms with the newer software to support all those Windows 7 desktops and that means large numbers of virtualized servers. VMW does not own the market and there are other competitors but they are the strongest and the lead dog in the harness. For those competitors following in their tracks the view is always the same.

Monster spike on Tuesday but much of it was given back into the close. I would really like to see a Nasdaq dip to get us filled! That may not happen since VMW announced at the close it was buying back $400 million in stock.

We have a $49.50 trigger on entering this trade.

Suggested Options:
I am recommending the July $55 Calls because VMW has just edged over $50 and even if we buy it on a dip the premiums are going to be high for the $50 options.

BUY CALL JUL 55.00 (VMW 10G55) open interest= 198     current ask $3.30

Entry  on  March 2nd at $ xx.xx <-- TRIGGER @ $49.50
Change since picked:       + 0.00
Earnings Date            04/26/10 (unconfirmed)
Average Daily Volume =       1.75    million  
Listed on  March 1st, 2010         


Colgate Palmolive - CL - close: 83.84 change: +.07 stop: 82.50

Slowly inching higher on no specific news.

Our target to exit is $85.00.

Entry  on  February 20 at $ 81.75 
Change since picked:       + 1.72
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 20, 2010         


TEVA Pharmaceuticals - TEVA - close: 60.93 change: +0.34 stop: 59.50

Another new high on Teva but it gave back 75 cents into the close. TEVA won a court case on Tuesday to sell generic Merck drugs Cozaar and Hyzaar. Those patents expire in April and the court gave Teva a 180-day head start on selling the generics. This overturned a prior ruling that said Teva had forfeited their 180-day privilege.

Our target to exit is $64.00.

Entry  on  February 20 at $ 58.74 
Change since picked:       + 1.88
Earnings Date            05/05/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 20, 2010         


PUT Play Updates

Caterpillar - CAT - close: 58.11 change: +0.30 stop: 59.01

No specific news on CAT and the stock spiked higher at the open only to decline the rest of the day ending with only a 30 cent gain.

CAT is an aggressive put. If the global economy is recovering then CAT should lead the advance. However, if the recovery is losing traction CAT should also lead the way down. We are not suggesting new positions at this time. This is an aggressive short-term trade. Our target to exit is $52.50. *NEW*

Entry  on  February 23 at $ 56.66 
Change since picked:       - 0.17
Earnings Date            04/21/10 (unconfirmed)
Average Daily Volume =         12 million  
Listed on  February 23, 2010         


CLOSED BULLISH PLAYS

Sina Corp. - SINA - close: 38.14 change: +0.76 *Closed*

Nice recovery and SINA is now retesting resistance at 38.50. Our instructions were to exit at the close today ahead of SINA earnings on Wednesday.

Chart:

Entry  on  February 22 at $ 36.50
Change since picked:       + 0.71
Earnings Date            03/03/10 (confirmed)
Average Daily Volume =        1.4 million  
Listed on  February 18, 2010         


CLOSED BEARISH PLAYS

Australian Dollar ETF - FXA - close: 90.39 change: +.32 stopped: 90.60

No specific news on FXA but currencies were all over the map. The intraday spike on the dollar's decline stopped us out at $90.60.

Chart:

Entry  on  February 23 at $ 89.23 /gap higher entry
Change since picked:       + 1.33
Earnings Date            --/--/--
Average Daily Volume =        200 thousand 
Listed on  February 23, 2010         


SIEMENS - SI - close: 89.28 change: +1.61 stopped: 89.75

Siemens rallied with the market and on a press release about a new communications offering. The intraday spike was enough to hit our stop at $89.75.

Chart:

Entry  on   January 26 at $ 94.34 /gap higher entry
Change since picked:       - 6.62
                            /1st target hit @ 87.55 (-7.1%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        368 thousand 
Listed on   January 26, 2010