Editor's Note:

We are adjusting our entry point strategy on PNRA. Meanwhile IBM is inching closer to our trigger to buy puts.

Current Portfolio:


CALL Play Updates

ADSK - Autodesk - $29.18, Change +0.12 Stop $27.50

Another day, another 52-week high for ADSK. Shares are creeping higher. The only real improvement I saw today was the rise in volume but you could argue that was investors selling into strength and exiting. I don't see any changes from my prior comments. The trend is up but ADSK is very short-term overbought and due for a dip.

I am not suggesting new bullish positions in ADSK at this time.

Current Position: CALL APR 30.00 (ADSK 10D30.00) @ $0.55

Entry on March 8th at $ 28.72
Earnings Date 02/24/10 (confirmed)
Average Daily Volume = 2.75 million
Listed on March 6th, 2010


ATHN - AthenaHealth Inc - $37.90, Change -0.31 Stop $36.50

The correction in ATHN continues. After failing at the 200-dma now the stock is struggling with its 10-dma. Our odds of getting stopped out are growing. Remember, this trade is an earnings "lottery ticket" style of play. The plan was to open positions ahead of the earnings report on March 15th and then hold over the announcement with the expectation of a post-earnings rally. It's an aggressive strategy and readers can still buy calls now although if you wait another day or two you might get a better entry point closer to $37.00. I would expect some short-term resistance near $42.00 and then near $44.00.

Current Position: CALL APR 40.00 (ATHN 10D40.00) @ $2.00

Entry on March 8th at $ 39.20
Earnings Date = 03/15/2010
Average Daily Volume = 600,000
Listed on March 6th, 2010


BUCY - Bucyrus International - $65.86, Change +0.23 Stop $62.50

Trade numbers out of China sent commodities higher last night but the rally faded. Mining stocks in Europe showed some strength, which may have given BUCY a little boost this morning. Shares gapped open and set a new relative high before correcting. The high today was $67.67. I am not suggesting new positions at this time. I want to reiterate my earlier comment that more conservative traders may want to take profits now! Our target to exit is $68.00.

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

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


Panera Bread Co. - PNRA - close: 77.27 change: +0.46 stop: 73.75

Uh-oh! It looks like PNRA is bouncing earlier than expected. Our plan was to buy calls on a dip at $75.25. Shares only hit $76.09 this morning before traders jumped in. I am suggesting that we go ahead and open small positions now. It's a risky entry point since the major indices still look overbought and due to correct. We will change our first target to $79.90 and our second target to $82.45. FYI: It is worth noting that PNRA could announce a stock split one of these days. The last time shares split was in the $75-80 zone back in June 2002.

Suggested Position: CALL APR 80.00 (PNRA 10D80.00) @ $1.35

Entry on March 11th at $ xx.xx
Earnings Date 04/28/10
Average Daily Volume = 519 thousand
Listed on March 9th, 2010


TEVA Pharmaceuticals - TEVA - close: 60.94 change: -0.54 stop: 59.50

Drug stocks underperformed the rest of the market on Wednesday and TEVA was no exception. Shares failed near $61.75 for the second time this week. I am growing more concerned that the up trend is losing steam. I am not suggesting new positions at this time. Our target to exit is $64.00. FYI: Don't forget that we only have two weeks left on March options.

Current Position: CALL MAR 60.00 (TVQ 10C6000) @ $0.70

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


PUT Play Updates

Intl. Business Machines - IBM - $125.62 change: +0.07 stop: 127.65

IBM continues to underperform. The stock dipped to $125.20 for the second day in a row and the afternoon rebound has already begun to rollover.

I am suggesting a trigger to buy puts at $124.90. If triggered our first target is $121.70 near the February lows. More aggressive traders may want to aim lower since IBM has broken its long-term up trend.

Trigger to buy puts @ 124.90

Suggested Position: PUT IBM 120.00 (IBM 10P120.00) @ $x.xx

Entry on March 10th at $ xx.xx
Earnings Date 04/19/10
Average Daily Volume = 5.67 million
Listed on March 9th, 2010