Editor's Note:

The market may have seen a strong number of new 52-week highs but only a few of the stocks on our play list joined the club with new highs. GMCR broke out and hit our trigger. TEVA hit our stop loss. We're dropping RKT.

The market is overbought but it can always get more overbought. Tread carefully here. Eventually there will be a correction. The more stocks climb the deeper the pull back will be.

Current Portfolio:


CALL Play Updates

ADSK - Autodesk - $29.52 Change +0.21 Stop $28.75 *new*

Shares of ADSK gapped open higher and hit $29.96 this morning. The early morning strength was fueled by news that Goldman Sachs had added ADSK to their "conviction buy" list. ADSK is now testing round-number resistance near $30.00. More conservative traders may want to use this strength today as an exit since the April $30 calls have bounced to $0.60. That way you can exit without a loss. I am raising our stop loss to $28.75. 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: 40.60 change: +0.28 stop: 35.95

The major indices are breaking out to new highs but CSH is still hovering under the $41.00 level. I don't see any changes from my prior comments. 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: 51.62 change: +0.36 stop: 49.49

CTSH set a new all-time high with today's rise. The stock hit $52.02 before paring its gains. CTSH looks poised to rally after breaking out from its two-week consolidation. 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: 97.61 chg: +3.68 stop: 92.75 *new*

GMCR is breaking out to new highs with today's rally past the $95.00 level. Yesterday we added an aggressive entry point to buy calls if GMCR hit $95.26. That trigger has been hit and the play is now open. I suggested readers use small positions given the aggressive nature of the trade. Please note that I'm upping our stop loss to $92.75. Our first target to take profits is at $99.75, which could get hit tomorrow! More aggressive traders may want to aim higher.

GMCR hit our trigger to open positions at $95.26.

Current Position: BUY CALL APRIL $100 (GMCR 10D100.00) @ $2.00

Chart:

Entry on March 17th at $ 95.26
Earnings Date 04/29/10
Average Daily Volume = 1.17 million
Listed on March 13th, 2010


Mobile Telesystems - MBT - close: 58.08 change: +0.05 stop: 54.40

The action in MBT today was a little disappointing. The market is hitting new highs and MBT only gained five cents. The trend is up but we might need to worry about waning momentum. I am not suggesting new positions at this time. 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: 41.24 change: +0.77 stop: 37.90

NIHD spiked higher this morning but the trade over $42 appears to be a bad tick. Most quote services are probably going to list today's high at $41.49. Today is a new 52-week high for NIHD. I remain cautious given the waning technical indicators. 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: 78.27 change: -0.13 stop: 74.75

PNRA displayed some relative weakness on Wednesday and refused to participate in the market's rally. This could be a sign that the rally is tired. I am not suggesting new positions at current levels. 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


Transocean Ltd. - RIG - close: 86.36 change: +1.66 stop: 83.45

It was an interesting session for RIG. Early morning weakness in the dollar was bullish for commodities but the dollar eventually erased its losses. The OSX oil service index broke out to new six-week highs but pared its gains by the close. The action in RIG was odd. Shares spiked higher this morning and then reversed actually closing in negative territory. Furthermore RIG has now produced a bearish engulfing candlestick (reversal) pattern. Normally these patterns require confirmation. Fortunately we are still on the sidelines. The high today was $87.12. Our trigger to buy calls is at $87.55.

I don't see any changes yet. We will still buy calls at $87.55. If triggered our first target to take profits is at $93.50. Our second and final target is $99.00 but that could take a few weeks.

Trigger to buy calls @ 87.55

Suggested Position: BUY CALL APRIL $90 (RIG 10D90.00) current ask $1.25

Entry on March xxth at $ xx.xx
Earnings Date 05/05/10
Average Daily Volume = 7.0 million
Listed on March 16th, 2010


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

TEVA Pharmaceuticals - TEVA - close: 59.94 change: -0.40 stop: 59.95

TEVA has continued to under perform. The stock did not participate in the market rally this week. Shares broke down under the $60.00 level and hit our stop loss at $59.95 closing the play. Looks like we should have followed my suggestion to exit on Friday.

Stopped out @ $59.95

Closed Position: CALL MAR 60.00 (TVQ 10C6000) @ $0.35
Entry price was $0.70

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


CLOSED BEARISH PLAYS

Rock-Tenn Co. - RKT - close: 46.50 change: +4.13 stop: 44.26

Whoa! What happened to RKT today? It looks like a short squeeze yet there was no company-specific news. The only news I could find was a report that Standard & Poor's had put Temple-Inland (TIN), another paper company similar to RKT, on credit watch with positive implications. Shares of TIN surged 9.1%. Yet I fail to see why RKT soared 9.7% on a potential credit upgrade for a rival. I suspect there were just too many people short RKT and with the market hitting new highs there was a sudden crowd at the exit door to cover their shorts. The most recent data did not suggest there was too much short interest but the data tends to be a lagging indicator.

I am dropping RKT as a bearish candidate. Our plan was to open bearish positions if the stock hit $41.90, which it did not hit. The play never opened.

RKT never hit our trigger at $41.90 (never opened)

Suggested Position: BUY PUT APRIL $40 (RKT 10P40.00)

Chart:

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