Editor's Note:

The market sold off hard this afternoon after an unexpected decrease in consumer credit and continuing concerns that Greece may default. Today's market action has made us more defensive and we are recommending closing and/or lightening up positions.

Current Portfolio:


CALL Play Updates

F5 Networks - FFIV - close: 64.56 change: -0.56 stop: 61.40

Shares of FFIV bounced nicely off of yesterday's lows near the $64 level. The stock has not followed through on the initial break out above $65.25. It will now have to contend with $65.69. If FFIV can follow through we are looking for a target of $69.75. I want to remind readers that this is an aggressive, higher-risk trade and we want to keep our position size small.

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: 53.82 change: -0.47 stop: 52.95

Shares of KO underperformed again today, reaching a low of $53.56 before buyers stepped in at the end of the day. The stock should find support near its 200-day SMA which is currently $53.42. More conservative traders may want to exit now or sell into any strength in the coming days. If the stock can't find some legs the remainder of the week we will consider adjusting our position or exit completely next week. 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: 92.67 change: -0.43 stop: 88.90

LLL opened the day with a gap down at $92.68 then spent the remainder of the day bouncing around and ultimately closing just about where it began. This created a doji candlestick which is a sign of indecision. We initially viewed this trade as a highly speculative trade and our $0.30 options are now only worth $0.05. I don't think it is worth exiting the options for a nickel so we will hold onto them to see if LLL can muster a rally into next week's expiration. If our miracle gains traction readers should consider selling positions if the April calls increase in value. I am not suggesting any new positions in LLL at this time.

We chose the out of the money $100 calls to keep our capital investment very small and our our 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: 42.47 change: -0.25 stop: 41.88 *NEW*

NIHD continued its retreat from its 52-week high hit on Monday. Considering the market action and there are only 7 trading days left until April options expire we are going to aggressively protect our profits in this trade by moving our stop up to 41.88, which is just below the low on Monday. The trend is up but I would hesitate to launch new positions. If NIHD starts to rally our target to exit is $44.00. Traders should exit positions on any strength in the coming days and/or lighten up on positions by Friday. Remember that we have April calls that expire in 7 trading days.

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


Occidental Petrol. - OXY - close: 88.49 change: +0.08 stop: 83.45

Commodity stocks led the stock market decline today as the U.S. dollar showed overall strength. OXY shed almost -2.50% and traded as low as $86.00. We are suggesting readers take advantage of any further short-term weakness in shares of OXY and use it as an entry point to buy calls. We expect the stock's recent broken resistance near the $85 level to hold as support and are looking to initiate positions if OXY trades to $85.50.

Trigger to buy calls at $85.50

Suggested Position: BUY CALL MAY $85.00 (OXY 10E85.00) current ask $5.35

Entry on April xxth at $ xx.xx
Earnings Date 04/29/10
Average Daily Volume = 5.5 million
Listed on April 6th, 2010


PartnerRe Ltd. - PRE - close: 80.80 change: +0.51 stop: 77.75

PRE showed strong relative strength today, closing up +0.64% despite the overall market being under pressure. The stock closed above the $80.55 resistance level for the first time. There is potential resistance near the October 2009 highs ($81.70) so don't be surprised to see some congestion there. If PRE follows through and breaks through $81.70 we have a good chance to reach our first of $84.75. Our second, longer-term target is $89.00.

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

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


Wynn Resorts - WYNN - close: 81.66 change: -0.08 stop: 74.45

WYNN held up relatively well today closing marginally lower on the session. Shares continue to look a little overbought here and we want to see a dip back toward the $78 area, which as broken resistance should be support. Our plan remains the same: buy calls on a dip at $78.50 with a new stop loss at $74.45. This remains an aggressive, higher-risk trade so please use smaller position size when initiating new positions. 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: 57.04 change: -0.39 stop: 59.05

AMED continues to look weak here and appears to be putting in a lower high. The stock has support in the $55.00 area but if the market's decline continues the stock should bust through this level. I am suggesting readers exit positions on any weakness AMED shows in the coming days because our April option expire next Friday. Our target to exit the trade is $50.25 but we will most likely be exiting the trade this week.

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: 84.89 change: -1.16 stop: 88.25

CERN sold off with the rest of the market today and appears to be putting in a lower high. 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 BULLISH PLAYS

Express Scripts - ESRX - close: 101.68 change: -0.38 stop: 99.90

There are 7 trading days left before April options expiration. ESRX has been unable to break above the $103 level and our options are still out of the money. Today's market action doesn't give me much confidence that the stock will be able to follow through prior to expiry. We have closed this position and cut our losses to prevent further time decay. The April 105 calls were still selling for $0.40 at the close of trading.

Current Position: CALL APRIL $105 (ESRX 10D105.00) at $0.40
Entry was at $1.10

Annotated Chart:

Entry on March 24th at $101.99
Earnings Date 04/29/10
Average Daily Volume = 2.51 million
Listed on March 23rd, 2010


Panera Bread Co. - PNRA - close: 81.72 change: +0.49 stop: 75.75

PNRA continued its rally today trading over $83.00 in the first 30 minutes hitting our first target of $82.00, but then the stock slowly sold off the remainder of the day closing at $81.72, which created a topping tail candlestick. This was enough for us to close our positions and lock in a nice gain. Since April options expire next week and the overall market looks weak this was the right thing to do.

1st target hit at $82.00

Exit completely at $82.00

Current Position: CALL APR 80.00 (PNRA 10D80.00) @ $3.00
Entry was at $1.35

Annotated Chart:

Entry on March 11th at $ 77.18
Earnings Date 04/28/10
Average Daily Volume = 519 thousand
Listed on March 9th, 2010


Priceline.com - PCLN - close: 259.81 change: - 1.79 stop: 249.45

PCLN, and the market in general, look tired here and we are expecting the stock to pullback. We decided to close our position today to prevent any further time decay going into April options expiry next week. We bought April calls for $2.15 and are exiting the position at $5.30 and locking in profits.

Exit completely at $259.81

Current Position: CALL APRIL $260 (PCLN 10D260.00) @ $5.30
Entry was at $2.15

Annotated Chart:

Entry on March 25th at $246.60
Earnings Date 05/11/10
Average Daily Volume = 793 thousand
Listed on March 23rd, 2010


Tractor Supply Co. - TSCO - close: 66.57 change: +5.07 stop: 57.75

TSCO offered very strong Q1 guidance this morning and hiked its 2010 view which sent the stock soaring. TSCO was up +10% in early trading easily reaching our target of $64.75. We exited calls at the open for $6.80, locking in a nice gain.

1st target hit at $64.75

Exit completely at $66.25 (opening gap up)

Current Position: CALL MAY $60.00 (TSCO 10E60.00) @ $6.80
Entry was at $2.95

Annotated Chart:

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