Editor's Note:

As planned we're closing the AAPL play following the iPad launch. More aggressive traders may want to let it ride. We're dropping the small cap put play early.

Current Portfolio:


CALL Play Updates

Express Scripts - ESRX - close: 102.40 change: +0.01 stop: 99.90

The initial rally in ESRX this morning faded and the stock closed virtually unchanged on the session. Considering the widespread rally in the rest of the market we have to view today's performance in ESRX as a sign of relative weakness. The stock appears to be struggling with short-term resistance in the $103.00-103.25 zone. Our first target is $104.90. Our second target is $107.45. Our time frame is just a couple of weeks.

Current Position: 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: 54.86 change: -0.44 stop: 52.95

Uh-oh! The action in KO today was definitely bearish. Shares gapped open to a new relative high above the $55.50 level and then promptly collapsed. I did not see any news to explain the relative weakness in KO today. Traders should definitely turn defensive given today's bearish reversal while the rest of the market was in rally mode. More cautious traders may want to consider a stop loss closer to $54.00 or even $54.50. 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: 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: 92.83 change: +0.30 stop: 88.90

Monday proved to be a relatively quiet low-volume session for LLL. The stock is struggling with the 10-dma and 20-dma directly overhead. I remain cautious on LLL and would not launch new positions 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: 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: 43.42 change: +0.99 stop: 39.90

Shares of NIHD surged to a new 52-week high and hit $43.95 this morning. Our target to exit is $44.00. More conservative traders may want to take profits now while more aggressive traders may want to aim for the $45 or $46 levels. We will plan to exit at $44.00.

Current Position: 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: 257.65 change: + 0.65 stop: 239.85

The trading in PCLN today was disappointing. The major market indices were breaking out to new highs and yet PCLN could not breakout past resistance near the $260 level. I am not suggesting new bullish positions at this time. I still think more conservative traders, if you haven't taken some money off the table, may want to do so. 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: 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: 80.28 change: +3.90 stop: 74.75

Call option activity on PNRA surged after the stock garnered a "buy" rating and a $100 18-month price target this morning. Shares of PNRA surged higher with a 5.1% gain to close over resistance near $80.00. Volume on the stock was twice the norm. This is definitely a bullish signal. Please note our new exit strategy. We will plan to sell half our position at $82.00. We'll sell the second half at $84.75. Keep in mind that April options expire in about two weeks. 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: 80.52 change: +0.76 stop: 77.75

PRE is looking lively again with a 0.9% rally and a close over resistance at the $80.50 level. Yet the high today was only $80.52 and our trigger to buy calls is at $80.55. Odds are very high that PRE will hit our trigger at $80.55 tomorrow.

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 MAY $80.00 (PRE 10E80.00) current ask $2.65

Entry on April xxth at $ xx.xx
Earnings Date 04/27/10
Average Daily Volume = 989 thousand
Listed on March 20th, 2010


Tractor Supply Co. - TSCO - close: 60.98 change: +1.58 stop: 57.75

Bingo! Our new play on TSCO is now open. Shares displayed relative strength with a 2.6% rally and a breakout past resistance to hit new 52-week highs. Shares hit our trigger to buy calls at $60.75 so we'll use a stop loss at $57.75. Our first target is $64.75.

TSCO hit our trigger at $60.75

Current Position: CALL MAY $60.00 (TSCO 10E60.00) @ $2.95

Chart:

Entry on April 5th at $ 60.75
Earnings Date 04/21/10
Average Daily Volume = 310 thousand
Listed on April 3rd, 2010


Wynn Resorts - WYNN - close: 82.28 change: +4.88 stop: 69.20

Wow! Casino and gambling stocks were huge winners today. The DJUSCA casino index surged 6.3% on news that companies with exposure to Macau were doing well with record gambling revenues for the region. Shares of WYNN soared 6.3% and broke out past resistance at $78.00 and the $80.00 level. We had been waiting for a correction to launch bullish positions. We need to re-evaluate our plan. Naturally today's breakout is very bullish but the stock is still overbought. Broken resistance near $78.00 should be new support so we will raise our buy-the-dip entry point to $78.50. We'll raise our stop loss to $74.45. If triggered at $78.50 our target is $84.50.

Trigger to buy calls at $78.50

Suggested Position: BUY CALL MAY $80 (WYNN 10E80.00) current ask $6.35

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

Amedisys Inc. - AMED - close: 58.12 change: +1.13 stop: 59.05

The market's bullish breakout on Monday does not bode well for any of our bearish positions. AMED has rallied toward short-term resistance near its 50-dma. Wait for the stock to rollover before considering new bearish positions. Our target to exit is $50.25. Our time frame is about two weeks.

Current Position: PUT APRIL $50.00 (AMED 10P50.00) $ 0.85

Entry on April 1st at $ 55.88
Earnings Date 04/28/10
Average Daily Volume = 749 thousand
Listed on March 31st, 2010


AvalonBay Comm. - AVB - close: 88.98 change: +3.24 stop: 90.15

The big rally in shares of AVB this morning looks like a short squeeze. I couldn't find any company or sector specific news behind the big rally in REITs today. The close over $88.00 is short-term bullish but shares still have resistance near $90.00. I'm not suggesting new positions at this time. Let's wait and see if the $90 level holds or not. We knew this was an aggressive trade to begin with but the strength of today's rally is surprising.

Current Position: PUT APRIL $85.00 (AVB 10P85.00) @ $1.70

Entry on April 1st at $ 85.75
Earnings Date 04/28/10
Average Daily Volume = 5.67 million
Listed on March 30th, 2010


Cerner Corp. - CERN - close: 86.33 change: +0.60 stop: 88.25

The rally in shares of CERN was relatively mild and volume came in pretty light. I don't see any changes from my weekend comments.

Last week's low was $83.84. I am suggesting a trigger to open bearish positions at $83.75. If triggered we'll use a stop loss at $88.25. Our target is the $76.50 level since the $75 level and the rising 200-dma look like potential support. If we do not see CERN breakdown under $84.00 soon I will be watching for another failed rally in the $89-90 zone as an alternative entry point for bearish positions. Please note that I consider this play somewhat aggressive due to CERN's higher than normal short interest. The most recent data listed short interest at nearly 14% of the 68.4 million share float. That raises the risk for a short squeeze. You may want to keep your positions limited.

Trigger to open bearish positions at $83.75

Suggested Position: BUY PUT MAY $80.00 (CERN 10Q80.00) current ask $1.95

Entry on April xxth at $ xx.xx
Earnings Date 04/28/10
Average Daily Volume = 526 thousand
Listed on April 3rd, 2010


CLOSED BULLISH PLAYS

Apple Inc - AAPL close: 238.49 change: +2.52 stop: 232.45

AAPL added another 1% following the launch of its iPad tablet PC. The company reported that they sold more than 300,000 units in the first day. Consumers have already downloaded more than one million applications for the product and purchased more than 250,000 ebooks. It's a strong launch and many in the industry feel it could be a game-changer. It was our plan to exit this trade on AAPL today at the closing bell to avoid any post-launch, sell-the-news sort of move lower. Our play is closed but I would keep AAPL on your watch list to buy a correction.

Closed at planned on Monday, April 5th at the closing bell.

Closed Position: CALL APRIL $230 (AAPL 10D230.00) @ $9.95 (+89.5%)
Entry price was at $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


CLOSED BEARISH PLAYS

iShares Russell 2000 - IWM - close: 69.71 change: +1.28 stop: 70.15

Uh-oh! The market-wide rally today was a bit surprising given the less than expected job growth in Friday's jobs numbers. The small caps have broken out to new 52-week highs. I am suggesting an early exit before shares hit our stop loss.

Closing Early

Closed Position: PUT APRIL $65.00 (IWM 10P65.00) @ 0.09
Entry was at @ $0.47

Chart:

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