Editor's Note:

Telecom stocks continue to do well. We're adjusting our exit and stop on TEVA. We've dropped IBM as a bearish candidate.

Current Portfolio:


CALL Play Updates

ADSK - Autodesk - $29.16, Change +0.13 Stop $27.50

Upward momentum continues to wane for shares of ADSK. The stock has essentially traded sideways all week in spite of the new 52-week highs. While the trend is up shares are short-term overbought and due for a correction. More aggressive traders may want to consider a wider stop loss. I am not suggesting new bullish positions in ADSK at this time.

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

Annotated Chart:

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 - $38.13, Change -0.07 Stop $36.50

Monday is the big day. ATHN reports earnings after the closing bell on March 15th. We are expecting a post-earnings pop. More conservative traders might want to raise their stop loss toward this week's low near $37.30. This "lottery ticket" style of earnings play is risky. Keep that in mind if you open new positions before Monday's closing bell. 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

Annotated Chart:

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 - $64.83, Change -0.12 Stop $62.50

BUCY tried to rally Friday morning but quickly failed after filling the gap down from Thursday. I remain concerned that the stock could be forming both a lower high and a bearish double top pattern. Once again I'm suggesting that more conservative traders exit early right now. I am not suggesting new positions at this time. Our target to exit is $68.00.

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

Annotated Chart:

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: 50.80 change: -0.21 stop: 48.95

Unfortunately I don't see any changes from my Wednesday night comments. I do want to remind readers that this is probably an aggressive play because the NASDAQ is so overbought and due for a correction. If the market corrects CTSH will likely follow. However, in the mean time the trend is up and shares are poised to breakout from this short-term consolidation above $50.00. Our initial target is $54.75. 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

Annotated Chart:

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


Mobile Telesystems - MBT - close: 57.07 change: +0.92 stop: 51.90

Telecom stocks continued to move higher and MBT out performed the market with a 1.6% gain and a new 52-week high. Shares are arguably overbought with a string of four weekly gains in a row but after consolidating in the $54-55 zone we have a good chance of seeing MBT continue the march higher. Patient traders may want to wait for a dip back toward $55.50-55.00 before launching positions. More conservative traders may want to use a tighter stop loss. Our first target to take profits is at $59.85.

Suggested Position: BUY CALL APR 60.00 (MBT 10D60.00) @ 1.10

Annotated Chart:

Entry on March 12th at $ 56.34
Earnings Date 03/31/10 (unconfirmed)
Average Daily Volume = 1.26 million
Listed on March 11th, 2010


NII Holdings Inc. - NIHD - close: 40.57 change: +0.33 stop: 37.90

NIHD is another wireless telecom stock that is out performing the market. Shares continued to rally on Friday with a 0.8% gain and a new 52-week high. I would still consider new bullish positions at current levels. Our first target is the $44.00 level.

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

Annotated Chart:

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: 79.15 change: -0.12 stop: 74.75

After Thursday's big gain PNRA took a day to pause and catch its breath. Friday's session was a quiet drift sideways. The $80.00 level could be round-number resistance. If that's the case then readers may want to wait for a dip, maybe toward the 10-dma, before considering new bullish positions. Remember, this is an aggressive trade with both PNRA and the market so overextended. 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

Annotated Chart:

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: 61.30 change: -0.35 stop: 59.75 *new*

The action on Friday was a little disappointing. TEVA spiked higher at the open, hit a new all-time high and broke through recent resistance. Only the rally didn't last and shares eventually closed in negative territory. I am inching our stop loss a little bit higher to $59.75. We only have one week left before March options expire! More conservative traders may want to exit now with the March $60 calls trading at $1.50. Given our time frame I am lowering our exit target to $63.00. I am not suggesting new positions at this time.

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

Annotated Chart:

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

*Currently we do not have any put play updates*


CLOSED BEARISH PLAYS

Intl. Business Machines - IBM - $127.94 change: +0.34 stop: 127.65

I am giving up on IBM for now. On Thursday I said that if IBM continues to rally we'll drop it as a bearish candidate. The stock managed a 0.2% gain although it's worth noting that Friday's candlestick could be setting up for another bearish reversal lower. I'm dropping it from the newsletter with the play unopened but I'm keeping IBM on my watch list.

Trigger to buy puts @ 124.90 (TRIGGER was NEVER hit)

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

Annotated Chart:

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