Editor's Note:

Good evening traders. BIIB and IMAX CALLS were initiated this morning. Both stocks performed well considering the market's overall weakness. WFT fell apart today and we were stopped out. We also closed GFI. I feel like we are going to get a relief bounce before the end of the week which is probably a good time to tighten stops on long positions. We now have an equal number of CALLS and PUTS which is certainly needed in this volatile environment. Our long positions are from more defensive sectors so they may perform well if the overall market is not. Stay on your toes and take profits off the table when the opportunity presents itself.

Current Portfolio:


CALL Play Updates

Biogen Idec Inc. - BIIB - close 52.70 change +0.40 stop 50.90

We initiated CALLS in BIIB at the open for $1.30. The stock performed well today and closed up +0.76%. My comments from the trade set-up remain the same. The stock has been in a downtrend on the daily charts but appears poised to break to the upside. The interesting thing though is that BIIB has not taken out its recent lows like the overall market and most other equities have. This has me wondering whether or not we should initiate a positions at current levels to take advantage the weakness and the ensuing break out above its recent downtrend line from March 22nd. When I look at the stock's YTD chart it did not suffer from the overall market weakness experienced from mid January through early February. It also has strong support here and sets up a very nice risk reward trade. Plus the stock has retraced almost 50% of the gain between its October 29th low and its March 22nd high. BIIB also trades at a low 16.1 PE ratio when compared to its peers in biotechnology and it also trades below the S&P 500 average PE of about 21. Biotechnology can be defensive so I like the play at these levels and suggest traders take advantage of the weakness. Our stop will be $50.90 so we will be out quick if the set-up fails from here. This is also below the 200-day SMA and a recent swing low. Our target is $56.90 with a more aggressive target at $58.90. The stock may experience some resistance with its 20-day SMA just overhead but if there is momentum it should overcome it.

Current Position: Long JUNE $55.00 CALL, entry at $1.30

Entry on May xx at $xx.xx
Earnings Date July 15, 2010 (unconfirmed)
Average Daily Volume: 2.7 million
Listed on May 1, 2010


IMAX Corporation - IMAX - close 19.05 change -0.02 stop 16.75

IMAX gapped down this morning and hit our trigger of $18.50 to buy CALLS. We are now long June $20 CALLS at $1.10. My comment from the play set-up remain the same. IMAX bounced nicely around $18.15 on Tuesday and Wednesday which was a prior resistance level that should now act as support. The stock has also created two back to back bottoming tail candlesticks on its daily chart which may indicate that sellers of the stock are waning. Buyers have been piling into the stock in recent months and IMAX reported earnings on 4/29 that beat expectations (.53 compared to .37 estimate). The company is experiencing a surge in earnings due to the onslaught of 3-D movies on the horizon. I suggest readers take advantage of the momentum and initiate positions if IMAX pulls back to $18.50. We will place our stop at $16.75 which is just below the 50-day SMA. Our target is $20.95 which is just below the stock's 52 week highs.

Current Position: Long JUNE $20.00 CALL, entry at $1.10

Entry on May 5th at $1.10
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 1.9 million
Listed on May 4, 2010


The NASDAQ OMX Group - NDAQ - close 20.86 change +0.46 stop 19.75

NDAQ was under pressure this morning but buyers came piling in pushing the stock higher to a +2.25% gain. The stock closed back above our key pivot level at $20.60 dating back August 2009. The stock has good support down to $20.00. I moved our stop down a few cents yesterday to $19.75 which is below the swing low from March 15th and the 200-day and 100-day SMA's. Our target is $22.25 with a more aggressive target at $22.90. However, if NDAQ trades up to its 20-day SMA (near $21.65) I suggest traders tighten stops or take profits. Our time frame is about two weeks.

Current Position: Long JUNE $21.00 CALL, entry at $0.80

Entry on May 4th at $0.80
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 2.9 million
Listed on May 3, 2010


PUT Play Updates

iShares Dow Transports - IYT - close 83.43 change -3.13 stop 84.45

IYT came within 18 cents of hitting our target of $81.50. Our $2.00 PUTS are now worth about $3.50 for +75% unrealized gain. I suggest traders begin to exit positions soon to protect profits. I am going to change our second target on this trade is $81.75 which is just above today's lows. But don't let this position reverse on you. Rather be stubborn in protecting profits. I am going to lower our stop to $84.45 but tighter stops could be placed at $83.10 and $83.75. Our time frame is about one week we but will have no issues exiting sooner if there is more downside in the coming days. I am not suggesting new positions at this time. *NOTE: Some of the strike prices in IYT have wider than normal bid/ask spreads. Use a limit order in the middle of the spread and you should get filled.

Current Position: JUNE $83.00 PUT, entry at $2.00

Entry on April 29 at $2.00
Earnings Date N/A
Average Daily Volume = 1.0 million
Listed on April 28, 2010


Sina Corporation - SINA - close 34.50 change +0.37 stop $38.80

SINA got a the relief bounce today but our PUTS are still in the black. SINA even retested our trigger area before it reversed back lower. SINA is below all its major daily and weekly SMA's except for the 100-week SMA. I expect the overhead resistance and SMA's to hold. Our new stop is $38.80 but we will adjust it as the trade develops. Our first target is $33.25 which is a point where I would tighten stops to protect profits. If SINA trades down there in the coming days I will be happy to take profits. A more aggressive 2nd target is $30.50. If a market correction gets going I think SINA could easily trade down to this level but I don't want to get whipsawed back and forth so please protect profits. Our time frame is several weeks.

Current Position: JUNE $35.00 PUT, entry at $2.20

Entry on May 4th at $2.20
Earnings Date June 9, 2010 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 1, 2010


Toll Brothers - TOL - close 22.02 change -0.40 stop 24.25

TOL was under pressure again today but bounced back and then reversed back down in the afternoon. The stock closed -1.78% lower. Our PUTS are now worth about $1.75. TOL traded within 8 cents of our target in early trading before reversing. I think TOL will ultimately hit our next target of $21.50 and possibly even $20.60. I'll keep our targets listed here as possible exit points: $21.80, $21.50, and $20.60. These are the levels where I suggest traders tighten stops or simply take profits. Aggressive traders can enter the position at this time. A tighter stop can be placed at $22.70 but don't let the stock run away from you. our time frame is about a week.

Current Position: JUNE $23.00 PUT, entry @ $1.40

Entry on April 27 at $ 1.40
Earnings Date Over 2 months
Average Daily Volume = 3.2 million
Listed on April 26, 2010


CLOSED BULLISH PLAYS

Gold Fields Ltd - GFI - close 13.22 change +0.00 stop 12.79

GFI reports earnings tomorrow before the bell. We closed the position this afternoon for breakeven as the stock reversed near its 20 and 50 hourly SMA's. We are now flat for breakeven on the trade. GFI didn't follow through higher like I expected but held up well considering the massive sell off the last few days. We are now looking for better opportunities. *NOTE: Please use small position size to limit risk as gold stocks tend to be volatile.*

Closed Position: Long MAY $13.00 CALL @ $0.60, entry was at $0.60

Annotated chart:

Entry on April 29 at $0.60
Earnings Date May 6, 2010 (unconfirmed)
Average Daily Volume: 5.3 million
Listed on April 28, 2010


Weatherford International - WFT - close 16.60 change -0.73 stop 16.55

WFT fell apart today and hit our stop late in the day by 3 cents. Hindsight says we should have closed this trade for a profit when we could have last week. The headline risk with oil proved to be too much as the entire sector has taken a beating this week. I have been urging traders to be cautious with WFT so if you exited great job. Traders who may still have positions can place stops a few cents below today's low. WFT looks like it has good support right here. $17.30, $17.80 and $18.60 are logical exit targets to keep an eye on. If

Closed Position: JUNE $17.00 CALL at $0.95, entry was at $1.58

Annotated chart:

Entry on April 28 at $ 1.58
Earnings Date Over 2 months
Average Daily Volume = 14.9 million
Listed on April 24 2010