Editor's Note:

Volume is declining and stocks are drifting sideways as fund managers run out the clock on a successful first quarter.

Current Portfolio:


CALL Play Updates

Apple Inc - AAPL close: 235.85 change: +3.46 stop: 228.00 *new*

AAPL surged to new all-time highs as investors reacted to more news about AAPL building a CDMA technology iPhone for Verizon's network. The stock gapped open at $236.60 and spiked to an intraday high of $237.48. Our first target to take profits was at $234.90 so our exit was at the open this morning. We still have a second target at $239.75. Keep in mind that I would hesitate to hold over the iPad launch this weekend. Sometimes stocks can see a run up into a new launch like the iPhone or the iPad only to reverse as investors sell the news. We will want to consider an exit on Thursday or an exit on Monday. I am raising our stop loss to $228.00.

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

03/30/10 - 1st Target Exceeded on gap open
AAPL opened at $236.60. The April $230 call opened at $9.20 (+75%)

Chart:

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: 51.46 change: +0.32 stop: 49.95

CTSH managed to outperform the broader market with a +0.6% gain but shares stalled near their 10-dma. I am suggesting we exit early if we do not see CTSH close above $51.65 tomorrow. CTSH acts like it is forming a top and we need to be cautious here. 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: 101.60 change: -0.64 stop: 99.40

There was no follow through on yesterday's bounce even though healthcare stocks were some of the best performers today. This could be a warning sign. I would hesitate to launch new positions. 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: 54.87 change: +0.10 stop: 52.95

The sideways consolidation in shares of KO is narrowing. It looks like no one wants to place any more bets until the first quarter ends. I am not suggesting new positions at this time. Lets wait for a bounce from the 200-dma or a break higher past $55.50. 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: 92.94 change: -0.65 stop: 88.90 *new*

I was ready to pull the plug on LLL today. Shares are under performing their peers and the stock looks ready to dip toward the $90.00 level. We knew this was an aggressive trade, which is why we choose the April $100 calls for $0.30 to keep our exposure very light. Today those calls are bidding $0.05. I would rather widen our stop loss and give LLL more room to move than exit now. We're going to adjust the stop down to $88.90. Wait for a bounce near the $90.00 level 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: 41.32 change: +0.07 stop: 39.60

NIHD has fallen asleep. The stock is trading sideways in a very narrow range. This looks like a very clear example of investors just sitting on the hands waiting for the quarter to end. More conservative traders may want to exit early right now. The April $40 calls are still at $1.90 (bid, our cost $1.85). I am very tempted to exit early tomorrow if NIHD shows any weakness. No new positions at this time. 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: 255.99 change: + 0.32 stop: 239.85

PCLN spiked lower this morning but traders bought the dip and shares spent the rest of the day churning sideways. There is no change from my prior comments. 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: 77.17 change: +0.26 stop: 74.75

PNRA managed a bounce but the early morning rally failed under $78.00, which is short-term resistance. More conservative traders may want to exit early. I am still expecting a pull back to the $75.00 level.

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: 79.66 change: -0.51 stop: 77.75

It looks like the bounce in PRE is fading. The stock performed a bearish reversal today under resistance. If the stock closes under $79.00 we'll drop it as a bullish candidate. Currently 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: 77.25 change: +0.40 stop: 69.29

Shares of WYNN are still coiling under resistance at $78.00. There is no change from my prior comments. We are 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: 42.26 change: +0.64 stop: 42.55

After Monday's rally today's gain was not a surprise and it's the reason we raised the stop last night. The question is, will the rally continue. Bigger picture this looks like the continuation of an oversold bounce that will eventually roll over. Short-term the breakout from the $40-42 zone and above its 200-dma is bullish. I am not suggesting new bearish positions at this time. Lets wait and see what happens tomorrow.

Previous comments: 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: 68.39 change: +0.21 stop: 70.15

The small cap index is still trying to bounce but it's not making much progress. There is no change from my previous comments. 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: 36.14 chg: +0.11 stop: 37.26

A bounce in the dollar put the brakes on the rally in commodities. The UYM is still trading under resistance near $37.00. There is no change from my prior comments.

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


CLOSED BEARISH PLAYS

Freeport McMoran - FCX - close: 83.66 change: +0.78 stop: 81.26

It looks like FCX is not going to cooperate with us. Strength in the dollar halted the rally in commodities today yet FCX continued to show relative strength. Our trigger to open bearish positions has yet to be hit at $77.90. We are dropping this stock as a candidate with the play unopened.

NEVER OPENED

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.

Chart:

Entry on March xxth at $ xx.xx *never opened*
Earnings Date 04/22/10
Average Daily Volume = 5.67 million
Listed on March 27th, 2010