After a drop at the open the indexes returned to positive territory and ended up closing at the high for the day. It was not the high for the week but with the nonfarm payroll report due out tomorrow morning I am very pleased with today's gains.

Unfortunately that monster drop at the open stopped us out of a couple plays.


CALL Play Updates

CSCO - Cisco Systems - $24.95, change +.11, stop $24.25

No specific news on Cisco today as we await the major announcement next week. Ciena (CIEN) posted a steeper than loss and dropped -9% but Cisco did not fall into that pit. The lure of next week's announcement helped push Cisco a little closer to that breakout over $25.

Why We Like It:
Cisco is on the verge of breakout out to a new high on the rebound in the tech sector. Next week, March 9th, Cisco is going to make an announcement that "will change the Internet forever." Their words, not mine. Analysts believe it will be some form of super fast broadband or ultra high-speed system for Internet traffic.

Google recently unveiled plans for its own ultra fast network but my money is on Cisco. Google promised to deliver Internet service at up to 100 times faster than most users have today. I doubt Cisco will let Google beat them and Google does have a nasty habit of announcing products that never appear.

The FCC is presenting a plan to Congress on March 17th that calls for 100 million homes to have access to 100-Megabit per second speeds by 2020. Most cable broadband uses have 2-Megabit speeds today so that would be a major upgrade.

Verizon already offers 50-Megabits on its FiOS wireline network and has tested 100-Megabit speeds.

All of these offerings and tests provide a threshold that Cisco will have to beat if they are going to "forever change the Internet." Let's hope they really pull a fast rabbit out of their announcement hat.

Suggested Options:

Position: CALL APR 25.00 (CSCO 10D25.00) @ $0.65

Entry  on  March 4th at $ 24.84 
Change since picked:       + 0.00
Earnings Date            N/A
Average Daily Volume =      50.0  million  
Listed on  March 03, 2010         


BUCY - Bucyrus International - $64.49, Stop $62.50

After a higher open BUCY declined with the market but recovered to close fractionally positive for the day. Maintain the stop just in case the payroll report is ugly.

BUCY reported earnings on Feb 18th and reported a 24% jump in profits.

Exit Target = $68.00

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

Entry  on  March 1st at $ 62.56 
Change since picked:       + 1.93
Earnings Date            02/18/10 
Average Daily Volume =  1.75   million  
Listed on  February 28, 2010         


VMW - VMWare - $51.78 *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.

Despite the morning drop VMW did not penetrate support that has formed at $50.50. If we don't get a sell off on the payroll report I will modify the trigger this weekend. No change in play. We are still untriggered.

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: 84.07 change: +.30 stop: 82.50

No news, decent action on a rocky day, no change in play.

Our target to exit is $85.00.

Entry  on  February 20 at $ 81.75 
Change since picked:       + 2.32
Earnings Date            04/29/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on  February 20, 2010         


TEVA Pharmaceuticals - TEVA - close: 61.18 change: +0.96 stop: 59.50

Outstanding rebound from the MDVN inspired sell off on Wednesday. No specific news.

Our target to exit is $64.00.

Entry  on  February 20 at $ 58.74 
Change since picked:       + 2.54
Earnings Date            05/05/10 (unconfirmed)
Average Daily Volume =        5.1 million  
Listed on  February 20, 2010         


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

MYGN - Myriad Genetics - $22.95, stopped @ $22.50

Myriad gapped down at the open along with the rest of the market and quickly rebounded but the gap was enough to stop us out at $22.50 by 3-cents. The low for the morning candle was $22.47.

Position: CALL MAY 25.00 (MYGN 10E2500) @ $1.05, exit .80, -$.25

Chart:

Entry  on  March 1st at $ 23.01 
Change since picked:     - 0.06     
Earnings Date            02/3/10 
Average Daily Volume =  1.62   million  
Listed on  February 28, 2010         


CLOSED BEARISH PLAYS

SWI - Solar Winds - $19.34, change +.92, stopped @ $19.25

Whoever was sitting on SWI with a sell order at $18.50 must have run out of stock. SWI rebounded today on no news to stop us out at $19.25.

Position: PUT JUN 17.50 (SWI 10R1750) @ $1.50, exit $1.05, -.45

Chart:

Entry  on  March 3rd at $ 18.42 
Change since picked:     + 0.83
Earnings Date           02/8/10 
Average Daily Volume =  600K  
Listed on  March 2nd, 2010