CALL Play Updates
IMAX Corporation - IMAX - close 17.36 change -1.54 stop 16.75
Uh-oh! The last few days traders have been buying the dips in IMAX. During Thursday's market plunge IMAX dipped to $17.50 and bounced. Unfortunately that strength has failed. Friday saw IMAX plunge more than 8% on no news. Shares tested the 50-dma and hit $16.96 on Friday afternoon. I find this trading action very discouraging and several of the short-term technical indicators just rolled over again (naturally after an 8% drop). I would wait for a bounce back above $18.00 before considering new bullish positions. More conservative traders may want to raise their stop or sell part of their position to limit their risk.
Our target is $20.95 which is just below the stock's 52 week highs.
Current Position: Long JUNE $20.00 CALL, entry at $1.10
Entry on May 5th at $1.10
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 1.9 million
Listed on May 4, 2010
Target Corporation - TGT - close 54.30 change -0.72 stop 51.75 *new*
The bulls have not given up on TGT yet. Traders continue to buy the dips. Unfortunately this past week TGT continued to see lower lows. Shares fell to $52.69 on Friday morning before paring its losses. The larger trend is still up and we anticipate that this is merely a normal, healthy correction. However, I am going to adjust our stop loss just a bit. The simple 100-dma near $52.00 should offer some technical support. I am moving our stop loss from $52.10 to $51.75. Readers may want to wait for some signs of strength (like a move over $55.00) before considering new call positions. Our target is $58.00. Our time frame is a couple of weeks. Target reports earnings on May 20th so we plan to be out of the trade prior to this date.
Current Position: Long JUNE $57.50 CALL, entry at $1.20
Entry on May 6, 2010 at $2.00
Earnings Date May 20, 2010 (unconfirmed)
Average Daily Volume: 5.2 million
Listed on May 5, 2010
PUT Play Updates
Sina Corporation - SINA - close 32.74 change -0.26 stop $38.80
The Chinese markets have not been immune to stock market weakness and SINA has broken down to new seven-month lows. Shares hit our first target at $33.25 on Thursday and there should be nothing holding up the stock between here and the $30 level but SINA does look a little oversold. The European markets might bounce if the EU can offer some sort of plan to protect the euro this weekend. That could influence Asian markets. Broken support near $35.00 should offer some overhead resistance. More conservative traders may want to consider adjusting their stop loss down toward the $36.50 area. Currently our second and final target is $30.50. Our time frame was originally several weeks but we may want to exit early ahead of the May 17th earnings report (after the closing bell).
Current Position: JUNE $35.00 PUT, entry at $2.20
Entry on May 4th at $2.20
Earnings Date June 9, 2010 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 1, 2010