Editor's Note:

The stock market refuses to correct. After Friday's decline and weakness in Europe prior to the open, many traders were looking for another down day. When stocks rebounded from their morning lows shorts scrambled to cover.

Current Portfolio:


CALL Play Updates

Cash America - CSH - close: 39.88 change: -0.34 stop: 36.75

After Friday's reversal under resistance CSH is seeing some follow through. Shares lost 0.8% and closed under the $40 level. I do not see any changes from my prior comments. We still have two different entry points just be aware that the breakout entry point is very aggressive and higher risk.

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. 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

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: 51.87 change: +0.62 stop: 49.75

CTSH displayed some relative strength with an early morning rally but the stock stalled at its recent highs near $52.00. The good news here was the lack of follow through on Friday's bearish reversal pattern. 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

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


L-3 Communications - LLL - close: 94.17 change: +0.00 stop: 91.25

Hmm... today is the second day in a row that LLL has closed virtually unchanged on the session. Friday saw a failed rally at $95 and dip to unchanged. Today saw a spike lower to $93.21 before bouncing back to drift sideways. If we step back and look at the bigger trend LLL is still climbing and today looks like a bounce from the rising 10-dma. I would consider new positions here but keep them small. More conservative traders may want to raise their stop a tad. 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

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: 40.93 change: +0.73 stop: 38.45

Traders bought the dip Monday morning and NIHD erased Friday's decline. Unfortunately the technical indicators still look like they are about to roll over. 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

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: 78.70 change: -0.29 stop: 74.75

PNRA is still consolidating with a bullish trend of higher lows while testing resistance near $80.00. 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

Entry on March 11th at $ 77.18
Earnings Date 04/28/10
Average Daily Volume = 519 thousand
Listed on March 9th, 2010


PartnerRe Ltd. - PRE - close: 78.78 change: -0.32 stop: 77.75

Monday was a relatively quiet session for PRE. Traders bought the dip around lunch time so shares were bouncing higher into the closing bell. I don't see any changes from my weekend comments.

The plan is to buy calls if PRE hits our trigger at $80.55. If triggered we'll use a stop loss at $77.75 (under Friday's low). Our first target is $84.75. Our second, longer-term target is $89.00. There is potential resistance near the October 2009 highs so don't be surprised to see some congestion there. If the market does retreat this week we'll be watching for an alternative entry point in PRE to buy the rebound.

Trigger to buy calls at $80.55

Suggested Position: BUY CALL APRIL $80.00 (PRE 10D80.00) current ask $1.05

Entry on March xxth at $ xx.xx
Earnings Date 04/27/10
Average Daily Volume = 989 thousand
Listed on March 20th, 2010


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

Green Mountain Coffee Roasters - GMCR - cls: 95.79 chg: +1.89 stop: 92.95

GMCR may be a bit too volatile for us. Shares opened at $92.98 but spiked down to $91.82 before rebounding sharply higher. GMCR ended the day with a 2% gain. Unfortunately we were stopped out at $92.95. We knew this was an aggressive, higher-risk trade, which is why I suggested small positions.

Closed Position: BUY CALL APRIL $100 (GMCR 10D100.00) @ $1.00
Entry was at $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


CLOSED BEARISH PLAYS

Sears Holding - SHLD - close: 107.47 change: +3.86 stop: 106.26

SHLD just whipsawed us right out of this trade. The stock opened weak, spiked down to $102.06, and the ricocheted higher. SHLD broke out past resistance near $106 to hit new 52-week highs. We had a trigger to buy calls at $102.40 so the morning spike lower opened the play and the spike higher stopped us out. This was labeled an aggressive, higher-risk trade and we wanted to keep our positions small.

Triggered at $102.40, stopped at $106.26.

Closed Position: BUY PUT APRIL $100 (SHLD 10P100.00) closed near $1.60
Entry was near $2.65.

Annotated Chart:

Entry on March 22nd at $102.40
Earnings Date 05/20/10
Average Daily Volume = 900 thousand
Listed on March 20th, 2010


Varian Semiconductor - VSEA - close: 30.57 change: +1.28 stop: 30.55

We have a similar situation with VSEA. The stock opened weak ($29.26), dipped to $20.02 before suddenly spiking higher and eventually hitting our stop loss at $30.55 late in the day. This was a tough day for shorts with bears on the run and looking for cover.

VSEA hit our stop loss at $30.55

Closed Position: BUY PUT APRIL $30.00 (VSEA 10P30.00) @ $0.90
Entry was at $1.55

Annotated Chart:

Entry on March 22nd at $ 29.29(?)
Earnings Date 04/29/10
Average Daily Volume = 743 thousand
Listed on March 20th, 2010