Editor's Note:

Stocks continue to melt higher as fund managers chase performance and try to dress up their portfolios before the quarter ends.

Current Portfolio:


CALL Play Updates

Apple Inc - AAPL close: 228.36 change: +3.61 stop: 222.49

The melt up continues and shares of AAPL broke out to new 52-week highs. Shares also hit our trigger to buy calls at $228.00. Now that our play is open I'm moving the stop to $222.49. Our first target is $234.90. Our second target is $239.75. More aggressive traders may want to keep their stop loss under support at the $220 level. FYI: I'm still concerned that stocks are overbought. I would keep your position size small.

Current Position: BUY CALL APRIL $230 (AAPL 10D230.00) current ask $5.25

Annotated Chart:

Entry on March 23rd at $228.00
Earnings Date 04/21/10
Average Daily Volume = 18.6 million
Listed on March 22nd, 2010


Cash America - CSH - close: 39.62 change: -0.26 stop: 36.75

CSH is still correcting but now we have to wonder about the stock's under performance. The $38.00 level should be strong support so our buy the dip entry point still works. Actually we have two suggested entry ideas 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: 52.52 change: +0.65 stop: 49.75

CTSH displayed some relative strength with a 1.2% gain and a new 52-week high. Some of the technical indicators still look bearish but so far CTSH is forging higher. 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: 94.62 change: +0.45 stop: 91.25

The defense sector indices both hit new 52-week highs (and both look very overbought). Shares of LLL gained 0.4% and while they are still under the $95.00 level the stock did set a new closing high. 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: 41.65 change: +0.72 stop: 39.45 *new*

NIHD is showing some relative strength with a 1.75% rally. The stock set a new closing 52-week high. I am raising our stop loss to $39.45. Readers could open new bullish positions here but they'll want to use a tight stop close to $40 and probably aim for the $45 level or higher. 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: 78.84 change: +0.14 stop: 74.75

PNRA didn't make much progress today. The stock was under performing this morning but managed to rebound back into positive territory by the closing bell. 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: 78.91 change: +0.13 stop: 77.75

I am surprised that PRE is not performing better. Shares are still consolidating sideways. While the consolidation is developing a bullish posture shares just aren't having any success climbing higher. More aggressive traders may want to consider bullish positions now. I am suggesting we wait for a breakout.

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*