Editor's Note:

Warning! The major U.S. indices and several high-profile names have all produced a bearish reversal on Thursday. Stocks initially rallied this morning on a potential solution to Greece's debt problems. Unfortunately negative comments from EU Central Bank President Jean-Claude Trichet sent the market lower. Germany and France had come to an agreement that any aid to Greece would be led by the IMF and Trichet believes that is a bad idea. Technically the action in the markets today is very bearish but it needs to see follow through. Unfortunately once momentum reverses the sell-off could be very sharp following such a big upward rally in the markets.

Current Portfolio:


CALL Play Updates

Apple Inc - AAPL close: 226.65 change: -2.72 stop: 222.49

Warning! AAPL and several high-profile names in the market produced a bearish reversal today. Normally these bearish engulfing reversal candlestick patterns need to see confirmation first. My concern is that by the time AAPL does confirm this reversal we will have already been stopped out. More cautious traders might want to raise their stops toward the $225 level, which is where I would expect AAPL to find its first level of support. I am not suggesting new positions at this time.

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

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: 39.78 change: +0.47 stop: 36.75

There has been no follow through on CSH's recent downturn. Shares are bouncing near the rising 30-dma. At the moment I am still expecting a dip toward the rising 50-dma near $38.00. There is no change from my prior comments. We have two different entry points spelled out. Be aware that the breakout entry point is more 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: 51.46 change: -0.46 stop: 49.95 *new*

The major U.S. indices hit new 52-week highs this morning. Shares of CTSH did not and that could be a clue that the rally is getting tired. Shares underperformed with a 0.88% decline. I am inching our stop loss a little higher to $49.95. The MACD on the daily chart has finally turned bearish. More conservative traders may want to exit early. I am not suggesting new bullish positions at this time. 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


Express Scripts - ESRX - close: 100.58 change: -0.25 stop: 98.90 *new*

Traders did indeed buy the dip at $100. The stock slipped to $100.11 this morning before bouncing. Unfortunately the bounce didn't make much progress. I am adjusting our stop loss higher to $98.90. I would wait for a bounce before considering new positions. I do consider this an aggressive trade since ESRX is so over extended but it can always grow more overbought. Our first target is $104.90. Our second target is $107.45. More aggressive traders could aim higher. Our time frame is just a couple of weeks.

Current Position: BUY CALL APRIL $105 (ESRX 10D105.00) at $1.10

Entry on March 24th at $101.99
Earnings Date 04/29/10
Average Daily Volume = 2.51 million
Listed on March 23rd, 2010


Coca-Cola - KO - close: 54.80 change: +0.18 stop: 52.95

KO managed to outperform the DJIA with a 0.3% gain. Shares did trim their intraday gains and I suspect the stock will retest the $54.50-54.25 zone again. Wait for a bounce before considering new bullish positions. The stock doesn't move super fast but I envision a rally toward the December highs over the next few weeks. Our target to exit is $59.00.

Current Position: BUY CALL May $55.00 (KO 10E55.00) at $1.62

Entry on March 24th at $ 55.22
Earnings Date 04/21/10
Average Daily Volume = 14.6 million
Listed on March 23rd, 2010


L-3 Communications - LLL - close: 92.96 change: -0.56 stop: 91.25

LLL was not immune to the market's afternoon profit taking. The stock's inability to hit a new 52-week high this morning is a warning sign. More conservative traders may want to abandon ship. I am expecting a dip toward $92.00. Wait for a bounce before considering new bullish positions. 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: 41.06 change: -0.19 stop: 39.60 *new*

Nothing has changed with NIHD. Shares are starting to fade from their recent highs. Technical indicators are starting to roll over from overbought levels and the MACD on the daily chart has turned bearish. We should acknowledge these as warning signs that momentum is waning. The March 22nd low was $39.66. I am adjusting our stop loss to $39.60. Wait for a bounce from $40 before considering new positions. Our first target is the $44.00 level.

Current 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


Priceline.com - PCLN - close: 255.03 change: +11.23 stop: 239.85 *new*

Our bullish play on PCLN is now open. Shares gapped open at $246.60 and rallied to $262.67 this afternoon before paring its gains. I couldn't find any specific news behind the rally. Our entry point to buy calls was at $246.50 so the play was triggered at the open. I am concerned that the market looks fragile and tired here so I'm raising our stop loss to $239.85. This is a very aggressive trade. We need to keep our positions small. Our target is $275.00. Our time frame is about four weeks.

FYI: The option opened at $2.15 (entry point) and spiked to $9.53 intraday. The April $260 call settled at $6.60. Readers may want to consider taking profits with the option up 200%.

Triggered when PCLN gapped open this morning at $246.60

Current Position: BUY CALL APRIL $260 (PCLN 10D260.00) @ 2.15

Chart:

Entry on March 25th at $246.60
Earnings Date 05/11/10
Average Daily Volume = 793 thousand
Listed on March 23rd, 2010


Panera Bread Co. - PNRA - close: 77.29 change: -1.55 stop: 74.75

Warning! After more than a week of failing to breakout past $80 shares of PNRA are correcting. Today's move looks like a short-term breakdown and I expect a dip toward support near $75.00. More conservative traders will want to seriously consider an early exit right here!

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.

Current 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: 80.01 change: +0.43 stop: 77.75

PRE continues to show relative strength and the stock posted a +0.5% gain on Thursday. There is no change from my prior comments. More aggressive traders may want to jump in early and buy calls right here! I am suggesting we stick to our original plan.

That 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.

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


Wynn Resorts - WYNN - close: 74.41 change: -1.40 stop: 69.29

Perfect! WYNN is beginning to correct. I expect shares to find support near the $70 level. Right now our plan is to buy calls if shares hit $71.50. If triggered we'll use a stop loss at $69.29. Our first target is $76.50. Our second target is $79.90. Longer-term traders could aim a lot higher.

Trigger to buy calls at $71.50

Suggested Position: BUY CALL APRIL $75 (WYNN 10D75.00) current ask $3.40

Entry on March xxth at $ xx.xx
Earnings Date 05/05/10
Average Daily Volume = 2.7 million
Listed on March 24th, 2010


PUT Play Updates

*Currently we do not have any put play updates*