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BJ's Wholesale Club (NYSE: BJ - option chain) shares are falling today despite reporting second-quarter profit that beat estimates and announcing a share buyback. This is possibly because discretionary item spending slowed. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BJ or similar companies like COST.

This morning, BJ opened at $38.60. So far today the stock has hit a low of $37.11 and a high of $38.98. As of 12:45, BJ is trading at $37.99, down $2.69 (-6.6%). The chart for BJ looks neutral and S&P gives BJ a neutral 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in two months as long as BJ is below $45 at October expiration. BJ's would have to rise by more than 18% before we would start to lose money.

BJ hasn't been above $45 at all in the past year and has shown resistance around $43 recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in BJ.

Kendle International (NASDAQ: KNDL) provides a range of clinical development services to the biopharmaceutical industry. Offerings include clinical trial management, clinical data management, statistical analysis, medical writing, regulatory consulting and publication services. The company has expertise in a range of therapeutic areas, including oncology, cardiovascular disease, inflammation and central nervous system disorders. Kendle's Early Stage segment focuses on Phase I operations. The Late Stage unit handles Phase II through IV clinical trials, regulatory affairs, and biometrics offerings. Covance (NYSE: CVD) and Parexel International (NASDAQ: PRXL) are major competitors.

The firm surprised the Street earlier in the month, when it reported Q2 EPS of 52 cents and revenues of $127 million. Analysts had been looking for 46 cents and $115.3 million. The EPS figure was a company record. Management also guided FY08 EPS to $2.00-$2.15 ($1.90 consensus) and FY08 revenues to $490-$500 million ($468.76M consensus). Ladenburg Thalmann subsequently reiterated its "buy" recommendation and boosted its price target to $51.

In the oil market, as in the U.S stock market, there are fundamental analysts and technical analysts.

Fans of fundamentals follow things like inventory levels, global oil demand, and refinery capacity. Fans of technicals follow things like the 50-day and 200-day moving average and chart formations (double tops, double bottoms, etc.).

Moreover, rarely do these two analytical schools merge in one trader: you're usually either a fan of fundamentals or technicals.

A 'hybrid' trader

Energy trader Jim Dietz breaks the mold. He's a hybrid trader, of sorts. He primarily follows fundamentals, but gives technical analysis its proper respect, and currently on the chart are two, technical oil price levels that are worth paying attention to, as they are likely to provide clues regarding oil's direction, he said. Dietz added that he is presently flat, or had no open energy trading positions.

Oil, Dietz said, "has closed below support in the $115-116 range for two days in a row." Tuesday would be the third, if it closes below $115, and if it does, that would be bearish for oil, he said. Oil was down 29 cents to $112.58 in mid-day Tuesday trading.

Saks (NYSE: SKS - option chain) shares are falling today after the company reported second-quarter losses of $31.7 million, or $0.23 a share, this morning, less than analysts' estimates of -0.17. The company also forecast lower operating margins. If high-end retailers are hurting, then there is definitely some behavior of the average American consumer that is changing as well. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SKS.

This morning, SKS opened at $10.60. So far today the stock has hit a low of $9.60 and a high of $10.61. As of 12:10, SKS is trading at $9.92, down $1.30 (-11.6%). The chart for SKS looks neutral while S&P gives SKS a positive 4 STARS (out of 5) buy ranking.

For a bearish hedged play on this stock, I would consider a November bear-call credit spread above the $12.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in three months as long as SKS is below $12.50 at November expiration. Saks would have to rise by more than 26% before we would start to lose money. Learn more about this type of trade here.

SKS hasn't been above $120 since late June and has shown resistance around $12 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in SKS.

Fuqi International (NASDAQ: FUQI) designs, develops and sells precious metal jewelry in the People's Republic of China. It offers rings, bracelets, necklaces, earrings and pendants made from such precious metals as platinum, gold, palladium and karat gold. The company also manufactures jewelry with diamonds and other precious stone inlays, as well as gold coins and gold bars. Fuqi International was founded in 2001 and is headquartered in Shenzhen.

The firm surprised the Street last week, when it reported Q2 EPS of 25 cents and revenues of $66.9 million. The Street had been looking for 20 cents and $62.8 million. Management also guided Q3 EPS to 26-27 cents (21 cent Street), Q3 revenues to $75-$77 million ($70.6M Street), FY08 EPS to $1.07-$1.09 ($1.08 Street) and FY08 revenues to $325-$333 million ($314.2M Street).

Broadcom (NASDAQ: BRCM - option chain) shares are moving higher today after an article in Barron's over the weekend said the stock could rise as much as 40 percent as the chipmaker enters the market for smartphones. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BRCM.

BRCM opened this morning at $28.23. So far today the stock has hit a low of $27.76 and a high of $28.39. As of 12:20, BRCM is trading at $27.86, up 40 cents(1.5%). The chart for BRCM looks bullish and S&P gives BRCM a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 13.6% return in just three months as long as BRCM is above $20 at November expiration. Broadcom would have to fall by more than 27% before we would start to lose money. Learn more about this type of trade here.

BRCM hasn't been below $20 since April and has shown support around $23 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BRCM.

BWAY Holding Company (NYSE: BWY), headquartered in Atlanta, is a leading North American manufacturer and distributor of metal and rigid plastic containers for the industrial and consumer products markets. The Metal Packaging segment specializes in steel paint cans, aerosol cans, pails and ammunition boxes. The Plastics Packaging unit provides injection-molded and blow-molded bottles and drums for petroleum products, agricultural chemicals, paints, inks, edible oils, adhesives and sealants. The ICL Industrial Containers division is Canada's leading supplier of plastic and steel pails. Ball Corporation (NYSE: BLL) and Crown Holdings (NYSE: CCK) are major competitors.

The firm surprised the Street last week, when it reported fiscal Q3 EPS of 41 cents and revenues of $274 million. Analysts had been looking for 28 cents and $271.6 million. In discussing the successful quarter, the CEO noted increased productivity, better cost containment and the effects of new products. Management also guided FY08 EPS to 70-75 cents, versus Street consensus of 53 cents.

SunPower (NASDAQ: SPWR - option chain) shares are soaring higher today after Pacific Gas and Electric Co. said it has chosen SPWR to supply up to 800 megawatts of renewable energy. On the news, an analyst at Merrill Lynch also upgraded SPWR to "Buy" from "Hold." If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SPWR.

SPWR opened this morning at $87.64. So far today the stock has hit a low of $87.57 and a high of $93.93. As of 12:55, SPWR is trading at $93.26, up $14.69 (18.7%). The chart for SPWR looks neutral and S&P gives SPWR a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $55 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think, but willstill leverage nice returns. For this particular trade, we will make an 11.1% return in just four months as long as SPWR is above $55 at December expiration. Sunpower would have to fall by more than 40% before we would start to lose money. Learn more about this type of trade here.

SPWR hasn't been below $55 since March and has shown support around $71 recently. With the way the political climate is shaping up, it looks like some form of solar power should be here for quite a while.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in SPWR.

LDK Solar Company (NYSE: LDK) is a leading manufacturer of the multicrystalline solar wafers used to produce solar cells and modules. The firm provides its wafers, as well as wafer processing services, to major manufacturers of photovoltaic products. More than two-thirds of its revenues derive from sales to companies in the Asia/Pacific region, primarily China and Taiwan.

The company pleased investors on Monday, when it reported Q2 EPS of $1.29 and revenues of $441.7 million. Analysts had been expecting 42 cents and $282 million. Management also guided Q3 revenues to $486-$496 million ($307.05M consensus) and FY08 revenues to $1.65-$1.75 billion ($1.16B consensus). The CEO noted that the firm had signed nine long-term wafer supply agreements year-to-date, further diversifying its customer base. On Wednesday, he announced yet another such agreement, with India-based XL Telecom & Energy.

Astronics Corporation (NASDAQ: ATRO) designs and manufactures electrical power and lighting systems for the aerospace industry. Products generate electricity for aircraft cabins and airframes and provide both interior and external lighting. Customers include manufacturers of business jets, military aircraft, missiles and commercial transports. The company's control panels are also used in a variety of military ground vehicles. Boeing (NYSE: BA), Lockheed Martin (NYSE: LMT) and United Technologies (NYSE: UTX) are among the firm's major clients. Astronics ranked first on the Fortune Small Business Magazine 2008 list of America's 100 fastest-growing small public companies.

The firm surprised the Street earlier in the month, when it reported Q2 EPS of 60 cents and revenues of $47.9 million. Analysts had been looking for 31 cents and $42.1 million. Management also guided FY08 revenues to $175-$185 million, versus Street consensus of $169.49 million. The CEO commented, "While we set an all-time record for shipments in the quarter, the level of orders received was even stronger." Boenning & Scattergood subsequently reiterated its "market outperform" rating on the shares and boosted its price target to $30.

Dr. Pepper Snapple Group (NYSE: DPS - option chain) shares are flying higher today after the company reported this morning earnings that beat expectations by 5 cents and set its full-year forecast about 3 cents higher than previous analyst estimates. Even if consumers are spending less, it seems that charging $1.50 for two liters of soda that cost only a few cents to produce is still a good business model. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DPS.

DPS opened this morning at $22.21. So far today the stock has hit a low of $22.12 and a high of $23.77. As of 12:45, DPS is trading at $22.94, up $1.28 (5.9%). The chart for DPS looks neutral, but improving.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 16.3% return in just three and a half months as long as DPS is above $20 at November expiration. DPS would have to fall by more than 12% before we would start to lose money. Learn more about this type of trade here.

AngioDynamics (NASDAQ: ANGO) provides medical devices used by interventional radiologists and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease. The firm's oncology product line includes image-guided radiofrequency ablation devices, used to kill cancer cells by heating and destroying them. The peripheral vascular line includes a variety of instruments to clear and drain non-cardiac arteries. The company's products are sold in more than thirty countries. Competitors include Johnson & Johnson (NYSE: JNJ) and Boston Scientific (NYSE: BSX).

The firm pleased investors late last month, when it reported fiscal Q4 EPS of 41 cents and revenues of $46.8 million. Analysts had been looking for 17 cents and $45.6 million. Management also guided FY09 EPS to 68 cents (64 cent consensus) and FY09 revenues to $205-$210 million ($201.32M consensus).

Archer-Daniels Midland (NYSE: ADM - option chain) shares are rising today after the Department of Agriculture lifted its corn production estimates and lowered its corn price estimates. The news is good for ADM since the company is a huge consumer of corn. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ADM.

ADM opened this morning at $26.34. So far today the stock has hit a low of $26.04 and a high of $27.25. As of 12:30, ADM is trading at $27.09, up $0.75 (2.8%). The chart for ADM looks bullish and S&P gives ADM a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $22.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 22.0% return in just four months as long as HANS is above $22.50 at September expiration. ADM would have to fall by more than 16% before we would start to lose money. Learn more about this type of trade here.

Albany Molecular Research (NASDAQ: AMRI) provides contract services to pharmaceutical and biotechnology companies. The firm offers drug discovery, screening programs, libraries for screening and hit-to-lead programs, and analytical quantification of drugs and metabolites in biological samples. The company also conducts its own research, aiming to license its compounds to other firms for further development. Albany Molecular owns a patent for fexofenadine HCl, the key ingredient in Sanofi-Aventis' (NYSE: SNY) antihistamine Allegra.

The company pleased investors last week, when it reported Q2 EPS of 24 cents and revenues of $57.9 million. Analysts had been looking for ten cents and $51.8 million. The CEO noted that submission of a Canadian Clinical Trial Application by partner Bristol-Myers Squibb (NYSE: BMY) triggered a milestone payment to Albany that reflected well on the value of the company's strategic technology platform. Management also guided Q3 EPS to 8-10 cents (seven cent consensus) and FY08 EPS to 48-52 cents (38 cent consensus).

SYSCO (NYSE: SYY - option chain) shares are soaring higher today after the company reported a fourth-quarter profit of $334.1 million, or 55 cents per share, beating analysts' estimates of 52 cents per share(see more of today's earnings news). It turns out that low-cost, bulk food products are still in high demand, especially at a time when consumers pocketbooks are feeling the pinch, so fancier fare may be out of the question. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SYY.

SYY opened this morning at $30.29. So far today the stock has hit a low of $29.50 and a high of $31.47. As of 12:30, SYY is trading at $31.21, up $1.34 (4.5%). The chart for SYY looks neutral and S&P gives SYY a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $27.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 13.6% return in just three and a half months as long as SYY is above $27.50 at November expiration. SYSCO would have to fall by more than 11% before we would start to lose money.

SYY hasn't been below $27.50 for more than a few days in the past year and has shown support around $28.50 recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in SYY.