Editor's Note:

It looks like the market is asleep at the wheel. For many issues the session was very boring with a tight trading range. Don't be surprised to see the market continue to slowly drift higher into the end of the first quarter.

Current Portfolio:


CALL Play Updates

Apple Inc - AAPL close: 232.39 change: +1.49 stop: 224.75 *new*

There were a number of headlines for AAPL today. There is speculation that AAPL is devising a new iPhone specifically designed for Verizon's network and is due to be launched this summer. There were also analyst comments who were significantly raising their estimates on the number if iPads to be sold. Then there was a story that AAPL was going to delay the first round of iPad shipments from this week to April 12th. All together the mood was still positive. Shares of AAPL gapped open higher at $233.00 this morning and closed with a +0.6% gain. I remain bullish on the stock but I'm cautious about new positions at this time. Please note our new stop loss at $224.75.

Our first target is $234.90. Our second target is $239.75. 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


Cognizant Technology - CTSH - close: 51.14 change: +0.05 stop: 49.95

Monday proved to be a very quiet session for CTSH with shares trading in a 60-cent range. Nothing has changed from my weekend comments. I would expect a dip toward $50.00. The question is, will support at $50.00 hold this time? Nimble traders could buy calls on a bounce near $50.00 but if you do I would keep your position size small. The market looks fragile here and CTSH is overbought with some bearish looking technical indicators. 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: 102.24 change: +1.62 stop: 99.40

Healthcare stocks were showing some relative strength today. After a four-day consolidation the HMO index is bouncing from its 10-dma and the 1550 level. I mentioned that Friday's afternoon bounce in ESRX looked like a new entry point but warned it was an aggressive trade given the market's overbought condition and the fast approaching end to the first quarter.

Shares of ESRX added 1.6% and closed near its highs for the session, which is normally a bullish sign for tomorrow. Our first target is $104.90. Our second target is $107.45. 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: 54.77 change: +0.12 stop: 52.95

Shares of KO slept through Monday's session. The stock drifted sideways in a 30-cent range. There is no change from my weekend comments. I strongly suspect shares are building up steam again for a new rally higher. Yet the correction may not be over yet. Readers could wait for a dip closer to $54.00 or wait for a convincing intraday bounce before launching new positions. The 200-dma near $53.00 should offer some technical support. 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: 93.59 change: +0.33 stop: 91.25

It was a bullish day for defense stocks. The DFI is coiling up against resistance and acts like it wants to breakout higher. The DFX defense index did breakout today and closed at new 52-week highs. Shares of LLL underperformed its peers with a +0.35% gain but the upward trend is still alive. I am still cautious on launching new bullish positions in LLL at this time. 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: 41.25 change: +0.42 stop: 39.60

NIHD delivered a boring performance. The stock gapped open higher at the open and then drifted sideways in a 40-cent range the rest of the session. I do not see any changes from my weekend comments. I would still be tempted to buy calls on a bounce from the $40.00 level but keep your positions very small. Technical indicators are looking bearish because the rally is so tired. 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: 255.67 change: + 3.56 stop: 239.85

PCLN displayed some relative strength with a morning rally toward the $260 level. The stock was upgraded to a "buy" and given a $350 price target. PCLN eventually pared its gains but managed to close with a 1.4% gain on the day. The April $260 call is trading in the $5.50-5.90 zone. More conservative traders may want to take profits early before the quarter ends. Don't forget this is an aggressive, higher-risk trade given PCLN's volatility and overbought stature. We need to keep our positions small. Our target is $275.00. Our time frame is about four weeks.

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

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: 76.91 change: +0.00 stop: 74.75

There was no follow through for the recent pull back in shares of PNRA. Traders bought the dip this morning and the stock closed unchanged on the session. The larger trend is up but short-term I am expecting a dip toward $75.00 and its rising 50-dma.

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: 80.17 change: -0.03 stop: 77.75

The trend of quiet sessions and narrow ranges included PRE as well. The stock failed at $80.46 but traders were buying the dip at $80.00. I do not see any changes from my weekend comments. We have a trigger to buy calls at $80.55. More conservative traders may want to raise that trigger to $80.75 or higher just to reduce the chance we get triggered on an intraday spike higher.

If triggered we'll use a stop loss at $77.75 (under the March 19th low). Our first target is $84.75. Our second, longer-term target is $89.00. There is potential resistance near the October 2009 highs ($81.70) 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 $1.40

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: 76.85 change: +0.22 stop: 69.29

Casino and gambling stocks continue to drift higher. WYNN was no exception. We are still waiting for a pull back. The plan is to wait for a dip to $71.50. If triggered at $71.50 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

ishares China - FXI - close: 41.62 change: +0.79 stop: 42.55 *new*

Investors were in a bullish mood in China. The Chinese Shanghai index rallied just over 2% today. The FXI tried to keep pace and closed up 1.9%. This ETF opened at $41.15 creating our new entry point. Given this entry point I'm adjusting our stop loss to $42.55. The FXI should see resistance near $42.00 and its 100-dma. I would wait for this ETF to roll over before launching new positions.

More conservative traders may want to wait for a close under $40.00 before considering new bearish positions. Our target to exit is $35.75.

Current Position: BUY PUT MAY $40.00 (FXI 10Q40.00) @ $1.28

Entry on March 29th at $ 41.15
Earnings Date --/--/--
Average Daily Volume = 21.3 million
Listed on March 27th, 2010


iShares Russell 2000 - IWM - close: 68.18 change: +0.37 stop: 70.15

The market experienced a widespread bounce on Monday and yet the small cap stocks did not see much of a move. The Russell 2000 index rose +0.48% and the IWM gained +0.5%. I remain bearish on this ETF and would still open positions anywhere in the $67.00-69.30 zone. The small caps had the biggest move higher they could have a substantial pull back.

More conservative traders could wait until Thursday before initiating positions. Broken resistance near $65.00 should be new support. Our target will be $65.10. We're not trying to knock the ball of the cover with this trade. We're just looking for a decent gain on what could be a temporary correction for the small caps.

Keep in mind that April options expire in three weeks. You may want to trade May options instead.

Current Position: BUY PUT APRIL $65.00 (IWM 10P65.00) @ $0.47

Entry on March 29th at $ 68.11
Earnings Date --/--/--
Average Daily Volume = 60.4 million
Listed on March 27th, 2010


ProShares Ultra(Long) Basic Mat. - UYM - close: 36.03 chg: +0.87 stop: 37.26

Our new bearish play on the UYM is not open yet. The sector spiked higher this morning thanks to the dollar. The euro was bouncing from multi-month lows and this pushed the dollar weaker, which in turn boosted commodities. The rally in commodities fueled gains for several of the mining stocks. The UYM closed up 2.4%.

We are waiting for a decline and have a trigger to buy puts at $34.30. More nimble traders could try and jump in if they see a failed rally near resistance at the $37.00 level. Meanwhile if we are triggered at $34.30 we'll use a stop at $37.26. If triggered our target is the $30.25 mark. More aggressive traders could aim for the 200-dma closer to $28.00. I do consider this somewhat aggressive since our stop is so wide. Keep your position size small, especially since we're trading a double-long ETF.

Trigger to buy puts at $34.30

Suggested Position: BUY PUT MAY $30.00 (UYM 10Q30.00) current ask $1.20

Entry on March xxth at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 4.5 million
Listed on March 27th, 2010


Freeport McMoran - FCX - close: 82.88 change: +3.71 stop: 81.26

Currency moves are the reason shares of FCX rallied. Euro strength pushed the dollar lower and commodities rallied. Copper really performed well. Shares of FCX responded with a gap open at $80.93 and a 4.6% rally toward the March highs. I'm willing to watch FCX for another day. If the rally continues we'll drop it as a bearish candidate. Right now our plan is to open positions with a trigger at $77.90. If triggered our target is $72.00. I expect the 200-dma near $71.00 to act as technical support. This can be a volatile stock. I do consider this an aggressive, higher-risk trade. Keep your position size small.

Trigger to buy puts at $77.90

Suggested Position: BUY PUT APRIL $75.00 (FCX 10P75.00) current ask $1.07

Keep in mind that April options expire in three weeks. I expect this trade to be over before April options expire.

Entry on March xxth at $ xx.xx
Earnings Date 04/22/10
Average Daily Volume = 5.67 million
Listed on March 27th, 2010


CLOSED BULLISH PLAYS

Cash America - CSH - close: 39.80 change: +0.45 stop: 37.45

I am temporarily giving up on CSH. We have been watching it for two weeks and have yet to get an entry point on the stock. I'll move it to my personal watch list. Shares never hit our breakout entry point above $41.00 or our buy the dip entry point at $38.25. Keep an eye on the rising 50-dma for support. The short-term action today looks bearish.

NEVER OPENED

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

Unopened Position: BUY CALL APRIL $40 (CSH 10D40.00)

Chart:

Entry on March xxth at $ xx.xx *never opened*
Earnings Date 04/22/10
Average Daily Volume = 272 thousand
Listed on March 13th, 2010