Editor's Note:

Check out an intraday chart of the small cap index. Investors were selling it hard into the close. This could be the very beginning of a market correction now that the first quarter is over. I suspect stocks may trade sideways tomorrow as the market waits for the jobs report out on Friday.

Current Portfolio:


CALL Play Updates

Apple Inc - AAPL close: 235.00 change: -0.85 stop: 228.00

AAPL spent the session trading sideways. Traders were probably hesitant to sell with the iPad launch this weekend and rival RIMM's earnings report after the closing bell tonight. RIMM missed earnings by a penny and it looks like the company lost about 1% market share, which many feel AAPL probably stole away. Shares of RIMM are down about $5 after hours while AAPL is up slightly (less than $1).

I still think that we might want to exit tomorrow or Monday. Right now I'm leaning toward an exit on Monday but that is the riskier exit. If the jobs report disappoints on Friday the market including AAPL could gap down Monday morning. I am not suggesting new bullish positions at this time.

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%)

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


Express Scripts - ESRX - close: 101.76 change: +0.16 stop: 99.40

Traders bought the dip again in ESRX as shares tested the rising 20-dma near $100 this morning. Volume was very light thanks to the quarter end. I remain bullish with ESRX above $100 but if we see a new lower high we'll consider an early exit. I hesitate to launch new positions until we see the jobs report on Friday. 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: 55.00 change: +0.13 stop: 52.95

KO displayed a little relative strength on Wednesday. Traders bought the dip near very short-term support at the $54.50 level. Volume was almost normal at more than 11 million shares (still low). I don't see any changes from my prior comments. Lets wait for a bounce from the 200-dma or a break higher past $55.50 before initiating 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: 91.63 change: -1.31 stop: 88.90

Bingo! Right on cue shares of LLL accelerated lower. We were expecting this pull back. Right now we're watching for support near $90.00, which should be underpinned by the rising 50-dma. Wait for a bounce from $90.00 before re-evaluating new bullish entries. 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: 41.68 change: +0.36 stop: 39.60

NIHD was showing some relative strength with a 0.8% gain and a rise toward its 52-week high near $42.00. The April $40 calls are now trading over $2.00. More conservative traders may want to take some money off the table to limit your exposure should the market correct. The stock remains overbought and I am not suggesting new bullish 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: 255.00 change: - 0.99 stop: 239.85

Shares of PCLN rallied toward $259 midday but eventually rolled over. The April $260 calls traded to $6.40 intraday. I am still suggesting that more conservative traders may want to take profits early, either now or on another rise toward $259-260. This remains a very 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: 76.49 change: -0.68 stop: 74.75

No one should be surprised by the weakness in PNRA. We have been expecting a pull back toward the $75 level for several days now. Broken resistance near $75.00 should be support that is now bolstered by the 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: 79.72 change: +0.06 stop: 77.75

Traders bought the dip in PRE this morning and shares were slowly inching higher the rest of the session. I do not see any changes from my previous comments. 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.

Please note that I have changed the option to MAY $80 calls.

Trigger to buy calls at $80.55

Suggested Position: BUY CALL MAY $80.00 (PRE 10E80.00) current ask $2.10

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: 75.83 change: -1.42 stop: 69.20 *new*

The correction in shares of WYNN may have started today with a 1.8% decline. Hopefully that means we could see an entry point in the next few days. We are waiting to buy calls on a dip. The plan is to use a trigger at $71.50. I have inched the stop loss down to $69.20. Our first target is $76.50. Our second target is $79.90. Longer-term traders could aim a lot higher. Please note that I have changed the option to MAY $75 calls.

Trigger to buy calls at $71.50

Suggested Position: BUY CALL MAY $75 (WYNN 10E75.00) current ask $5.55

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

AvalonBay Comm. - AVB - close: 86.35 change: -0.64 stop: 90.15

Traders bought the dip near $86 again but the bounce rolled over midday at $87.27 (under its 10-dma). I see this as another sign that AVB is rolling over and shares are about to correct. More aggressive traders could jump in now. I am suggesting a trigger to buy puts at $85.75. Our target is $80.50. The simple 50-dma might be technical support but once the market begins to correct I don't believe the 50-dma will stop it. We should consider this somewhat aggressive since the P&F chart for AVB is still bullish and shares offer a 4% dividend yield, which might attract some capital in a prolonged downturn. Plus, our stop loss is a little wide.

Trigger to buy puts at $85.75

Suggested Position: BUY PUT APRIL $85.00 (AVB 10P85.00) current ask $1.25

Entry on March xxth at $ xx.xx
Earnings Date 04/28/10
Average Daily Volume = 5.67 million
Listed on March 30th, 2010


ishares China - FXI - close: 42.10 change: -0.16 stop: 42.55

Hmm... it was an interesting session for the FXI. The Chinese markets lost about 0.6% on Wednesday. The FXI gapped open lower, rallied toward Tuesday's highs, and rolled over. Volume was very strong for the fifth day in a row. While this looks like a potential failed rally I would not launch new positions yet. I'd rather see some follow through.

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: 67.80 change: -0.59 stop: 70.15

Take a look at an intraday chart in the IWM. The ETF quickly rolled over late in the day and was falling fast toward the closing bell. This could be the very beginning of the market's correction. There is no change from my prior 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. More aggressive traders could aim for the $62-60 zone.

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: 35.78 chg: -0.36 stop: 37.26

Basic material stocks could not build on their previous gains in spite of a dip in the U.S. dollar today. It looks like the UYM is going to roll over under the $37.00 level. 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 BULLISH PLAYS

Cognizant Technology - CTSH - close: 50.98 change: -0.48 stop: 49.95

We have been cautious on CTSH for days. Last night I suggested we exit early if shares did not close above $51.65 today. Unfortunately CTSH has continued to slip lower after yesterday's failed rally near the 10-dma. Therefore we're closing the play. I would keep CTSH on your watch list. A bounce near $48.00 and its rising 50-dma or the 100-dma closer to $47.00 could be a new bullish entry point.

Exit early

Closed Position: CALL APRIL $55 (CTSH 10D55.00) @ $0.05
Entry was at $0.40

Chart:

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