Editor's Note:

If you are holding March options you have six days left before expiration. Keep that in mind as you consider your exit strategy.

Current Portfolio:


CALL Play Updates

ADSK - Autodesk - $29.03, Change -0.15 Stop $27.50

ADSK drifted sideways in a very narrow range. While most of the market saw a very late day spike higher shares of ADSK did not. That could be a warning sign. I'm concerned that this stock is overbought and due for a pull back.

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 - $38.20, Change +0.30 Stop $36.50

Traders bought the dip twice around the $37.50 level today. The bounce erased most of yesterday's decline but shares are still trading under their 10-dma. 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. 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 - $64.95, Change -0.91 Stop $62.50

Shares of BUCY suffered a one-two punch this morning. First the stock was downgraded to a neutral by an analyst firm. Second the Chinese inflation numbers were higher than expected. That spooked investors and raised concerns that China may have to raise rates, which would slow down their growth and thus slow down demand for commodities. This sent mining-related stocks lower across the globe overnight. Shares of BUCY gapped open lower at $64.60 but fortunately traders bought the dip at $63.34. The bad news is some of the short-term technical oscillators are starting to turn negative. 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


Cognizant Technology - CTSH - close: 51.01 change: +0.20 stop: 48.95

So far so good. CTSH opened at $50.54 (our entry point) and traders bought the dip. Shares posted a 0.39% gain, which was inline with the S&P 500 and the NASDAQ today. I would still consider bullish positions now. Nothing has changed from my Wednesday night comments. I do feel that this is an aggressive trade because the NASDAQ looks so overbought and due for a correction. If the market does correct CTSH will likely pull back with it. Our initial target is $54.75. We'll use a stop loss at $48.95. FYI: Don't go overboard just because the option looks cheap. If CTSH does correct the value will vanish.

Suggested Position: BUY CALL APRIL $55 (CTSH 10D55.00) @ 0.40

Entry on March 11th at $ 50.54
Earnings Date 05/04/10
Average Daily Volume = 4.05 million
Listed on March 10th, 2010


NII Holdings Inc. - NIHD - close: 40.24 change: +0.09 stop: 37.90

It was a relatively quiet day for NIHD. Shares hovered around the $40.00 level and the stock opened at $40.10 (our entry point). There is no change from my prior comments. Readers can buy calls now and we'll use a stop loss at $37.90. Our first target is the $44.00 level.

Suggested Position: BUY CALL APRIL $40 (NIHD 10D40.00) @ $1.85

Entry on March 11th at $ 40.10
Earnings Date 04/22/10
Average Daily Volume = 2.68 million
Listed on March 10th, 2010


Panera Bread Co. - PNRA - close: 79.27 change: +2.00 stop: 74.75 *new*

The rally continues. Last night we changed our strategy and suggested an immediate entry into PNRA calls. The stock opened at $77.18 and outperformed the market with a 2.5% gain. The stock closed at another new high. Now the $80.00 level could be round-number, psychological resistance but PNRA doesn't appear to be slowing down. I feel this is an aggressive trade with the market so extended so stay defensive. I am raising our stop loss to $74.75.

Our first target is $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 $ 77.18
Earnings Date 04/28/10
Average Daily Volume = 519 thousand
Listed on March 9th, 2010


TEVA Pharmaceuticals - TEVA - close: 61.65 change: +0.71 stop: 59.50

TEVA appears to be coiling for a breakout over the $62.00 level. Traders keep buying the dip so the trend of higher lows is still intact. We have just over a week left for March options. More conservative traders may want to take some profits tomorrow! I am not suggesting new positions at this time. Our target to exit is $64.00.

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 - $127.60 change: +1.98 stop: 127.65

Hmm... I don't know what to tell you. IBM had been under performing the market these last few days. Suddenly shares spike higher with a 1.5% gain on no news. The close over its 50-dma is certainly short-term bullish. If the stock continues to rally tomorrow we'll drop IBM as a put candidate. For now our plan is unchanged. We have 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