Editor's Note:

I am dropping RIG as a bullish candidate given the weakness in commodities. We're also cutting ADSK loose. A few of our stocks are showing possible bearish reversals. Readers need to be very careful here. You may want to consider an early exit or raising your stop loss. I would definitely wait for a dip before considering any new bullish positions.

Current Portfolio:


CALL Play Updates

Cash America - CSH - close: 40.22 change: -0.47 stop: 36.75 *new*

Shares of CSH encountered some profit taking on Friday. The stock actually produced a little bearish engulfing (reversal) candlestick pattern. In addition the MACD has produced a sell signal and a new lower high. I strongly suspect that CSH is going to correct toward support near $38.00 soon. We still have two different entry points just be aware that the breakout entry point is very aggressive and higher risk.

We have two entry points for CSH. Our first is the buy-the-dip strategy with a trigger to buy calls at $38.25. If CSH hits $38.25 we want to buy the April $40 calls and we'll use a stop loss at $36.75 (new). Our first target is $41.00. Our second target is $44.00.

We also have a breakout trigger to buy calls on CSH if shares hit $41.20. This is a much more aggressive entry point so we want to keep positions small. If CSH hits our trigger at $41.20 we'll use a stop loss at $39.40. Our target is $44.25. We want to buy the April $45 calls. They are cheap so don't go overboard. Remember, small positions! This way if CSH reverses on us we will limit our risk.

Buy-the-Dip: Use a trigger at $38.25 to buy calls.

Suggested Position: BUY CALL APRIL $40 (CSH 10D40.00) current ask $1.55

Buy-the-Breakout: Use a trigger at $41.20 to buy calls.

Suggested Position: BUY CALL APRIL $45 (CSH 10D45.00) current ask $0.15

Annotated Chart:

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: 51.25 change: -0.58 stop: 49.75

I have to urge caution on CTSH. Today's session was bearish. Shares did hit a new high at $52.22 but eventually they reversed. Selling stalled at the rising 10-dma, which is bullish but CTSH has produced a bearish engulfing (reversal) candlestick pattern. These patterns require confirmation but any decline on Monday would be negative. I am not suggesting new bullish positions at this time. More conservative traders may want to up their stops toward the $50.50 level. Our initial target is $54.75.

Current Position: 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


Green Mountain Coffee Roasters - GMCR - cls: 93.90 chg: -2.90 stop: 92.95 *new*

I have to issue a reversal warning on GMCR too. The stock's bullish breakout on Wednesday and sudden reversal and its close under what should have been support near $95.00 is bearish. Plus it looks like a blow-off top on the weekly chart. More conservative traders may want to abandon ship early, especially since our entry point at $95.26 was the aggressive, higher-risk entry point. I am inching up our stop loss to $92.95.

This is an aggressive trade with small positions. Our first target to take profits is at $99.75. More aggressive traders may want to aim higher.

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

Annotated Chart:

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


L-3 Communications - LLL - close: 94.17 change: -0.01 stop: 91.25

LLL held up reasonably well thanks to strength in the sector. The defense sector was one of the few sector indices to close in positive territory on Friday. Shares of LLL hit a new 52-week high Friday morning before paring its gains. Given the market's weakness on Friday readers may want to wait for a dip or a bounce near the $93.00-92.50 zone before launching new positions. Remember, this was an aggressive, higher-risk trade and we wanted to keep our trade size small. Our first target is $97.00. Our final target is $99.75.

We chose the $100 calls to keep our capital investment very small. Keep your position size limited.

Current Position: BUY CALL APRIL 100.00 (LLL 10D100.00) @ $0.30

Annotated Chart:

Entry on March 18th at $ 93.88
Earnings Date 04/22/10
Average Daily Volume = 908 thousand
Listed on March 17th, 2010


NII Holdings Inc. - NIHD - close: 40.20 change: -0.64 stop: 38.45

It looks like the rally could be in trouble for NIHD as well. It was positive to see the stock hold the $40.00 level on Friday but if the market continues to slip lower it wouldn't take much to have NIHD stop us out. Technical indicators are starting to look bearish. More conservative traders may want to raise their stop loss. I am not suggesting new bullish positions at this time. 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: 78.99 change: +0.40 stop: 74.75

PNRA was showing some strength early this morning. The stock actually tagged another new high before trimming its gains. The trend is up but shares and the market are overbought and the $80 level could end up being round-number, psychological resistance. I am not suggesting new positions at this time. This was an aggressive trade given our entry point. 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


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

ADSK - Autodesk - $29.11 Change -0.31 Stop $28.75

I am choosing to throw in the towel on ADSK. We've had the play for a couple of weeks and it can't seem to build up any momentum. Now some of the technical indicators are flashing sell signals. We want to exit early and look elsewhere. Readers may want to put ADSK on their watch list for a correction and buy the bounce.

Closed Position: CALL APR 30.00 (ADSK 10D30.00) @ $0.35(bid)
Entry was at $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


Transocean Ltd. - RIG - close: 81.84 change: -1.83 stop: 83.45

The Greece problem is really affecting the currency markets. The euro plunged again on worries Greece's debt woes are still not solved. The dollar has been rising in response and that's pushing oil futures lower. The oil service stocks are reacting to oil weakness and RIG has collapsed in the last couple of days.

Our trigger to buy calls was never hit at $87.55 so I am dropping this stock as a bullish candidate with the play unopened.

Trigger to buy calls @ 87.55 was never hit.


Annotated Chart:

Entry on March xxth at $ xx.xx *never opened*
Earnings Date 05/05/10
Average Daily Volume = 7.0 million
Listed on March 16th, 2010