Editor's Note:

The market is still trending higher. Financials were showing relative strength today. REIT stocks continued to soar on short covering.

Current Portfolio:


CALL Play Updates

Express Scripts - ESRX - close: 102.06 change: -0.34 stop: 99.90

The trend of higher lows continues in shares of ESRX but the stock remains stuck under the $103.00 level. We have less than two weeks left before April options expire and they're still out of the money. If we don't see ESRX show some progress soon I'll be tempted to close this play early, probably before the week is out. Readers could use a breakout over $103.00 as a new entry point but I suggest buying the May calls. 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


F5 Networks - FFIV - close: 65.12 change: -0.17 stop: 61.40

Shares of FFIV opened at $65.26 yet the May $65 calls opened at $3.00 providing a much better entry point for us. Shares of FFIV slipped lower on profit taking following yesterday's big gain. Yet traders bought the dip at the $64.00 level. I would still consider new positions now near $65. I want to remind readers that this is an aggressive, higher-risk trade and we want to keep our position size small. Our first target is $69.75.

Current Position: CALL MAY $65.00 (FFIV 10E65.00) @ $3.00

Entry on April 6th at $ 65.26
Earnings Date 04/21/10
Average Daily Volume = 1.0 million
Listed on April 5th, 2010


Coca-Cola - KO - close: 54.29 change: -0.57 stop: 52.95

Red Alert! Shares of KO are under performing two days in a row. Yesterday's bearish failed rally and reversal pattern has now been followed up with a breakdown under short-term support near $54.50 and a close under its simple 50-dma. More conservative traders may want to exit early immediately. I'm expecting a pull back toward the rising 200-dma, which should be support near $53.50. I am not suggesting new positions at this time. 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: 93.10 change: +0.27 stop: 88.90

Defense stocks suffered some minor profit taking today but traders bought the dip in LLL this morning and the stock closed in positive territory. This relative strength is encouraging but I remain cautious here. I'm not suggesting new bullish 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: 42.72 change: -0.70 stop: 39.90

NIHD retreated from its 52-week high hit yesterday. Broken resistance near $42.00 offered some support this morning and shares trimmed their losses by the close. The trend is up but I hesitate to launch new positions. Our target to exit is $44.00. More aggressive traders could aim higher. Just remember that we have April calls that expire in less than two weeks.

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: 261.60 change: + 3.95 stop: 249.45 *new*

Good news! Traders immediately bought the dip this morning near $255 and the stock has now rallied past and closed above recent resistance near $260.00. Shares look poised to rally higher from here but more conservative traders may want to take profits early. The April options expire in less than two weeks and the April $260 call traded over $7 today. I am raising our stop loss to $249.45. I will be tempted to close this trade before the week is out to avoid the option decay ahead of expiration.

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: 81.23 change: +0.95 stop: 75.75 *new*

PNRA continues to rally following yesterday's big gain. Traders bought the dip this morning near $79.40 and the stock has closed at another new 52-week high. Last week's low was $75.78 so I'm raising the stop loss to $75.75. Our first target to take profits is at $82.00. Our second, more aggressive target is $84.75. Keep in mind that April options expire in less than 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: 80.29 change: -0.23 stop: 77.75

Hmm... today was not the best showing for PRE. The stock finally hit our trigger to buy calls at $80.55. Yet there was no follow through. Shares spiked to $80.67 this morning and then just drifted sideways only to slip lower into the closing bell. Nimble traders could try buying a dip near $79.00. I'd prefer to see PRE show more strength. Today's high was $80.67. You might want to look for a move over $80.75 as an entry point.

Of course now that the play is actually open 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.

Triggered at $80.55

Current Position: CALL MAY $80.00 (PRE 10E80.00) $ $2.40

Chart:

Entry on April 6th at $ 80.55
Earnings Date 04/27/10
Average Daily Volume = 989 thousand
Listed on March 20th, 2010


Tractor Supply Co. - TSCO - close: 61.48 change: +0.50 stop: 57.75

The breakout continues in TSCO with the stock up another 0.8% and closing at a new 52-week high. Our first target is $64.75. Broken resistance in the $60 area should offer a little support followed by stronger support near $58.00. If you're looking for a new entry point consider waiting for a dip near $60.50-60.00.

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

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: 81.74 change: -0.54 stop: 74.45

WYNN tagged $83.20 before rolling over into a 0.6% decline. Shares look a little overbought here and we want to see a dip back toward the $78 area, which as broken resistance should be support. The plan is to buy calls on a dip at $78.50 with a new stop loss at $74.45. This remains an aggressive, higher-risk trade but investors continue to buy up any casino stocks with exposure to Macau. 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 April 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: 57.43 change: -0.69 stop: 59.05

There was no follow through on AMED's two-day bounce and so far short-term resistance in the $58-59 zone appears to be holding. I am still cautious here given the market's bullish posture. Wait for AMED to actually roll over first 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


Cerner Corp. - CERN - close: 86.05 change: -0.28 stop: 88.25

It still looks like CERN's oversold bounce is rolling over under the $87.00 level. I am suggesting we stick to the original plan and wait for a breakdown under $84.00. We'll use a trigger to buy puts at $83.75. If triggered at $83.75 our target is $76.50. 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 BEARISH PLAYS

AvalonBay Comm. - AVB - close: 92.42 change: +3.44 stop: 90.15

Ouch! The short squeeze in the REIT stocks carried over into Tuesday. AVB is up nearly $7 in the last two sessions. The breakout past resistance at $90.00 is pretty bullish. Our stop loss was hit at $90.15. Readers may want to put AVB on their watch list to buy calls on a dip or bounce near $90.00.

Stopped out at $90.15

Closed Position: PUT APRIL $85.00 (AVB 10P85.00) @ $0.35
Entry price was @ $1.70

Chart:

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