Editor's Note:

I really hesitate to open new bullish positions with the market looking so overextended. Be careful and consider raising your stop losses.

Current Portfolio:


CALL Play Updates

ADSK - Autodesk - $29.31 Change +0.05 Stop $27.95 *new*

This could be a warning signal. The market rallied to new 52-week highs and ADSK barely budged. I am inching our stop loss higher again; this time to $27.95. More conservative traders may want to up their stop to breakeven. 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


Cash America - CSH - close: 40.32 change: +0.09 stop: 35.95

CSH did not see a lot of action on Tuesday but the action it did see is somewhat bullish. Traders bought the dip again and shares look ready to challenge short-term resistance near $41.00. Currently the plan is to wait for a dip and use a trigger at $38.25 to buy calls. More aggressive traders may want to consider buying calls on a move over $41.00 instead. If triggered at $38.25 our first target is $41.00. Our second target is $44.00. Our time frame is several weeks.

Use a trigger at $38.25 to buy calls.

Suggested Position: BUY CALL APRIL $40 (CSH 10D40.00) current ask $1.95

Entry on March xxth at $ xx.xx
Earnings Date 04/22/10
Average Daily Volume = 272 thousand
Listed on March 13th, 2010


Cognizant Technology - CTSH - close: 51.26 change: +0.41 stop: 49.49 *new*

CTSH is slowly moving higher and the stock is now challenging its early March and all-time highs near $51.30. I am still concerned that the market is overbought and due for a correction but CTSH is telling you the next move should be higher. I am adjusting our stop loss to $49.49. Our initial target is $54.75.

Current 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


Green Mountain Coffee Roasters - GMCR - cls: 93.93 chg: +0.84 stop: 83.45

We have a similar situation here with GMCR. The stock is somewhat overbought and we'd prefer to buy calls on a dip but it looks like GMCR is about to breakout over resistance and the top of its short-term trading range near $95 soon. I am going to outline a separate strategy to play GMCR so we'll have to plans.

First, we'll keep the buy-the-dip strategy but we'll lower the entry point to $86.50 and adjust the stop loss to $83.85. If GMCR hits this entry point we want to buy the April $90 calls. Our first target is $94.00. Our second target is $99.75.

Second, we will add a breakout entry point to buy calls if GMCR hits $95.26. However, we want to keep our position size small. This is a more aggressive, higher-risk trade. If GMCR hits our breakout entry point at $95.26 then we want to buy the April $100 calls and we'll use a stop loss at $90.99. If triggered our target to exit is $99.75.

BUY-THE-DIP: Use a trigger at $86.50 to buy calls

Suggested Position: BUY CALL APRIL $90 (GMCR 10D90.00)

- or -

BUY-THE-BREAKOUT: Use a trigger at $95.26 to buy calls (small positions)

Suggested Position: BUY CALL APRIL $100 (GMCR 10D100.00)

Chart:

Entry on March xxth at $ xx.xx
Earnings Date 04/29/10
Average Daily Volume = 1.17 million
Listed on March 13th, 2010


Mobile Telesystems - MBT - close: 58.03 change: +1.77 stop: 54.40 *new*

The rally continues in shares of MBT. Shares out performed the market with a 3.1% gain and an intraday high of $58.70. I am raising our stop loss to $54.40. Our target to exit is at $59.85.

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

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: 40.47 change: +0.21 stop: 37.90

The rally in NIHD lagged behind its peer MBT but the trend remains higher. My comments from yesterday about lagging momentum are still true today. More conservative traders might want to raise their stops or scale back their position size. If the market really corrects we could get stopped out. More aggressive traders may want to consider new positions on a new closing high (above $40.60) or buy a bounce from $39.00. 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: 78.40 change: +0.37 stop: 74.75

It was a relatively quiet session for PNRA. The trend is up but I am somewhat concerned that the $80.00 level could be round-number, psychological resistance. Readers may want to wait for a deeper pull back before launching new 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

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: 60.98 change: -0.32 stop: 59.95

Uh-oh! TEVA is really under performing the market today. I cautioned readers yesterday that the stock appeared to be rolling over. Shares gapped down this morning after Goldman Sachs cut TEVA from their conviction buy list claiming that shares are fully valued now. Shares of TEVA hit $60.03 at its low today and yesterday I had raised our stop to $59.95. I would still consider an early exit but if the market continues to climb then TEVA might be able to recover. March options expire this Friday. Our target to exit is currently $63.00.

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

Rock-Tenn Co. - RKT - close: 42.37 change: -0.47 stop: 44.26

Our new bearish candidate is underperforming the market but shares have yet to breakdown under the $42.00 level. I am suggesting readers use a trigger at $41.90 to buy puts. If triggered our target is $38.00. RKT found support back in February around $37.25.

Use a trigger to buy puts @ 41.90

Suggested Position: BUY PUT APRIL $40 (RKT 10P40.00) @ x.xx?

Entry on March xxth at $ xx.xx
Earnings Date 04/27/10
Average Daily Volume = 645 thousand
Listed on March 15th, 2010