Editor's Note:

We had three bullish candidates hit our exit targets on Friday. Meanwhile traders were still in buy-the-dip mode ahead of the weekend. Stocks were bouncing off their lows in the last hour of trading.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes Inc. - BHI - close: 69.73 change: -0.48

Stop Loss: 67.90
Target(s): 74.75, 79.00
Current Option Gain/Loss: -67.6% and -42.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Strength in oil weighed on equities including the energy sector on Friday. Yet BHI remains inside its $68-72 trading range. I would be inclined to buy April calls on this dip.

Our targets are $74.75 and $79.00.

- Suggested Positions -

Long the March $75 calls (BHI1119C75) Entry @ $1.02

- or -

Long the April $75 calls (BHI1116D75) Entry @ $2.13

chart:

Entry on February 28th at $71.74
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on February 26th, 2010


Peabody Energy Corp. - BTU - close: 69.35 change: +0.03

Stop Loss: 64.75
Target(s): 69.75, 74.00
Current Option Gain/Loss: +25.2%, and +25.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/05 update: BTU has hit our first profit target at $69.75. Shares bounced around Friday morning but saw an intraday rally to $69.86 before paring its gains. Our March $70 call was trading (bid) near $1.60 (+49.5%) and the June $70 call was (bid) near $5.10 (+41.6%).

The $70 level could be round-number resistance so don't be surprised to see a dip back toward the $66 area. I would wait for that dip before considering new positions. Our final target is the $74.00 level but we may have to exit the March calls before BTU hits that level. If we do see a new entry point I would consider the April or June options. <--

Our second target is $74.00. The Point & Figure chart for BTU is bullish with an $80 target. -->

- Suggested Positions -

Long the March $70 calls (BTU1119C70) Entry @ $1.07

- or -

Long the June $70 calls (BTU1118F70) Entry @ $3.60

03/04 1st Target Hit @ 69.75. Options @ +49.5% and +41.6%
03/03 New stop loss @ 64.75

chart:

Entry on February 17th at $66.30
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on February 16th, 2010


BorgWarner - BWA - close: 77.75 change: +0.13

Stop Loss: 73.75
Target(s): 79.75, 84.50
Current Option Gain/Loss: -22.7%, and -25.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: BWA's Friday looked a lot like Thursday. Shares failed near short-term resistance at $78 on Friday morning but did not see much profit taking. The stock appears to be coiling for a breakout higher. I would open new positions here although I would buy April calls since March options expire in two weeks.

Our targets are $79.75 and $84.50. Our plan was to use small positions to limit our risk.

SMALL bullish positions

Long the March $80 calls (BWA1119C80) Entry @ $1.10

- or -

Long the April $80 calls (BWA1116D80) Entry @ $2.47

chart:

Entry on February 25th at $76.06
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on February 24th, 2010


Caterpillar Inc. - CAT - close: 103.04 change: -1.21

Stop Loss: 97.90
Target(s): 104.75, 107.50
Current Option Gain/Loss: -48.1%
2nd Option Gain/Loss: + 6.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/05 update: Profit taking pushed CAT down toward its 20-dma but traders bought the dip near the $102 level. On Thursday I suggested that readers could wait for a dip near $102 as our next entry point. I would still consider new (April) positions now at current levels. More conservative traders may want to raise their stops toward the $100 level.

- Suggested Positions -

Long the March $105 calls (CAT1119C105) Entry @ $1.35

- or -

Long the April $105 calls (CAT1116D105) Entry @ $2.78

03/03 2nd position (April $105 calls) opened at $2.78
03/02 Buy calls on the bounce.
02/23 Triggered @ $101.00. Option @ $1.35
02/22 Still waiting for a dip to $101.00
02/12 Adjusted our trigger, targets, stop loss and strike price.

chart:

Entry on February 23 at $101.00
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on February 5th, 2010


Cerner Corp. - CERN - close: 104.29 change: -0.25

Stop Loss: 97.75
Target(s): 104.85, 109.00
Current Option Gain/Loss: +14.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: CERN hit our first target at $104.85 on Friday. Shares challenged resistance at $105.00 before paring its gains and closing lower. The bid on our option was trading around $3.15 (+16.6%). If you're looking for a new entry point I would prefer to launch positions in the $102-100 area. Considering the market's bullish trend, a dip near $102 may be all we get. Our second and final target is $109.00.

FYI: I want to point out that the most recent data (as of Feb. 15th) listed short interest at 13.9% of CERN's 70-million share float. That definitely seems like a high amount of shorts and fuel for a short squeeze. Plus, the Point & Figure chart for CERN is bullish with a $115 target and what appears to be a relatively fresh quadruple top breakout buy signal.

- Suggested Positions -

Long the April $105 calls (CERN1116D105) Entry @ $2.70

03/04 1st Target Hit @ $104.85, Option @ $3.15 (+16.6%)

chart:

Entry on March 3rd at $102.62
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 600 thousand
Listed on March 2nd, 2010


Check Point Software - CHKP - close: 49.50 change: -0.94

Stop Loss: 47.90
Target(s): 54.50
Current Option Gain/Loss: -42.3%, and -23.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/05 update: Ouch! CHKP underperformed the major indices on Friday with a -1.8% loss. I didn't see any specific headlines behind this decline. CHKP is an Israeli company and it looks like the Israeli market was closed on Friday. Naturally the increase in violence across the Mideast on Friday could have had investors selling ahead of the weekend afraid of what headlines might surface before Monday.

I would look for a dip or bounce near $48 before launching new positions and then only April options. Our target is $54.50.

- Suggested Positions -

Long the March $50 calls (CHKP1119C50) Entry @ $1.30

- or -

Long the April $52.50 calls (CHKP1116D52.5) Entry @ $0.85

chart:

Entry on February 28th at $50.28
Earnings Date 04/26/11 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on February 26th, 2010


Fastenal Co. - FAST - close: 61.85 change: -0.50

Stop Loss: 59.90
Target(s): 67.25
Current Option Gain/Loss: -88.2%, and -33.3%
2nd Position Option Gain/Loss: -50.0%, and - 9.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/05 update: A little profit taking on Friday is not a surprise after Thursday's strong gains. I would be tempted to buy calls now or you could wait and see if shares retest support near $60 (April or May options only).

Readers may want to keep in mind that the most recent data listed short interest at 13.6% of the 132 million-share float.

- Suggested Positions -

Long the March $65 calls (FAST1119C65) Entry @ $0.85

- or -

Long the May $65 calls (FAST1121E65) Entry @ $2.25

-2nd Entry as of listed 2/24, Entered 2/25-

Long the March $65 calls (FAST1119C65) Entry @ $0.20

- or -

Long the APRIL $65 calls (FAST1121D65) Entry @ $0.99

02/24 Buy the dip. New Entry (2nd position).
02/23 New entry point @ 60.96. March $65 call @ 0.25, May $65 call @ $1.45
02/22 Entry @ 62.99, NEW STOP @ $59.90
02/19 Adjusted entry point. Buy calls now. Very small positions
02/12 New trigger @ 61.55, new stop loss @ 59.40

chart:

Entry on February 22nd at $62.99
Earnings Date 04/12/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on February 8th, 2010


FactSet Research Systems - FDS - close: 104.04 change: -1.07

Stop Loss: 99.95
Target(s): 109.50
Current Option Gain/Loss: -18.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
03/05 update: We have six trading days left on this trade. The plan is to exit ahead of the March 15th earnings report. Thus far FDS is still working on a bullish trend of higher lows so we can buy calls on this dip or hope for a pull back near the $102-100 zone. I would keep our positions size small. This is a volatile stock and we're playing March options so expect a lot of volatility in the option price. We'll plan on exiting March 14th at the close to avoid holding over the report.

small positions - Suggested Positions -

Long the March $105 calls (FDS1119C105) Entry @ $2.15

chart:

Entry on March 1st at $105.01
Earnings Date 03/15/11 (confirmed)
Average Daily Volume = 213 thousand
Listed on February 26th, 2010


F5 Networks Inc. - FFIV - close: 113.82 change: -0.53

Stop Loss: 109.90
Target(s): ---.--
Current Option Gain/Loss: -87.9%, and -57.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: There is no change from my prior comments. I am very wary of FFIV at this point. I am suggesting we start looking for an exit. The long-term up trend is not broken yet but traders keep selling into strength. I'm planning to exit on a bounce near the $120 level assuming we don't get stopped out at $109.90 first. I am not suggesting new bullish positions at this time.

The plan was to use small positions to limit our risk.

SMALL bullish positions

Long the March $120 calls (FFIV1119C120) Entry @ $5.40

- or -

Long the April $125 calls (FFIV1116D125) Entry @ $6.80

03/05 Looking for an exit near $120ish
03/03 Turn defensive. Start looking for an early exit.
02/28 Buy the dip, New Entry point.
02/25 FFIV gapped open higher on an upgrade.

chart:

Entry on February 25th at $121.00
Earnings Date 04/20/11 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on February 24th, 2010


Fossil, Inc. - FOSL - close: 80.83 change: +0.50

Stop Loss: 74.75
Target(s): 82.00, 88.00
Current Option Gain/Loss: +85.7%, and +65.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: FOSL is still showing relative strength. Traders bought the dip twice near $79 on Friday morning and the stock hovered near $80 the rest of the day. Shares are poised to rally higher from here. Aggressive traders may want to buy calls now (but adjust your stop losses higher and plan on exiting near $88).

Our exit targets are $82.00 and $88.00.

- Suggested Positions -

Long the March $80 calls (FOSL1119C80) Entry @ $1.40

- or -

Long the April $80 calls (FOSL1116D80) Entry @ $2.60

03/03 new stop loss @ 74.75

chart:

Entry on February 28th at $76.75
Earnings Date 05/11/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on February 26th, 2010


Hess Corp - HES - close: 84.24 change: -0.96

Stop Loss: 81.60
Target(s): 92.25, 98.50
Current Option Gain/Loss: -37.6%, and -31.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Another day of gains for crude oil did not translate into strength for energy stocks. Big picture the trend is HES is up, bears could argue that this past week might be a bearish reversal or failed rally pattern. I am suggesting readers look for a dip into the $83.00-82.00 zone as our next entry point. HES should find support near $82 and its rising 40-dma. Alternatively, readers could wait for a breakout over $86.00 as an entry point.

<-- The Point & Figure chart for HES is bullish with a $107 target. -->

- Suggested Positions -

Long the April $90 calls (HES1116D90) Entry @ $2.60

- or -

Long the May $90 calls (HES1121E90) Entry @ $4.15

03/02 Adjusted stop loss to $81.60

chart:

Entry on March 1st at $87.17
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on February 28th, 2010


IntercontinentalExchange, Inc. - ICE - cls: 130.25 chg: +0.77

Stop Loss: 119.90
Target(s): 138.00, 148.00
Current Option Gain/Loss: -15.6%, and -13.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Shares of ICE are still drifting higher and managed to close over the $130.00 mark. The path of least resistance seems to be up but this remains a higher-risk trade. If you're launching positions now you'll want to consider a higher stop loss. Otherwise, I would wait for a dip into the $125 area.

Prior comments:
Bear in mind that this is an aggressive trade. The stock is volatile and there is a chance that ICE makes an acquisition bid for another exchange. If Wall Street thinks ICE is paying too much the stock will decline on the news. Our targets are $138.00 and $148.00. I want to warn you that the March options will probably be extremely volatile.

- Suggested Positions - (Small Positions Only)

Long the March $130 calls (ICE1119C130) Entry @ $3.20

- or -

Long the April $135 calls (ICE1116D135) Entry @ $3.40

chart:

Entry on February 28th at $127.46
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 938 thousand
Listed on February 26th, 2010


Jones Lang Lasalle Inc. - JLL - close: 97.04 change: -1.81

Stop Loss: 93.30
Target(s): 102.50, 109.00
Current Option Gain/Loss: -51.4%, and -25.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Friday's -1.8% decline overshadowed the big gains on Thursday. Traders did buy the dip near $96 and technical support at the rising 30-dma. Aggressive traders may want to buy the dip but consider raising your stop loss.

JLL has see a lot more volatility in the last month so let's keep our position size small to reduce our risk. Our targets are $102.50 and $109.00.

FYI: March options are likely to be very volatile.

- Suggested Positions - (Small Positions)

Long the March $100 calls (JLL1119C100) Entry @ $1.75

- or -

Long the April $100 calls (JLL1116D100) Entry @ $3.40

chart:

Entry on February 28th at $97.96
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 386 thousand
Listed on February 26th, 2010


3M Co. - MMM - close: 92.19 change: -0.62

Stop Loss: 88.75
Target(s): 94.50, 99.00
Current Option Gain/Loss: +57.7%, and +52.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: MMM is hovering under resistance and three-year highs near $93. I would be inclined to buy calls right now but readers can wait for a breakout higher or look to buy calls on a dip near $90. I would buy April calls.

- Suggested Positions -

Long the March $90 calls (MMM1119C90) Entry @ $1.75

- or -

Long the April $95 calls (MMM1116D95) Entry @ $0.78

chart:

Entry on February 25th at $89.75
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.5 million
Listed on February 24th, 2010


Nike Inc. - NKE - close: 89.88 change: +0.04

Stop Loss: 84.80
Target(s): 88.00, 91.50
Current Option Gain/Loss: +158.3%, and +195.7%
2nd Position Gain/Loss: + 68.7%, and + 50.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: NKE did not show a lot of weakness on Friday, which bodes well for next week. Unless the market really breaks down this stock looks poised to breakout past resistance at $90.00 and make a run at its recent highs. Officially our final exit target is $91.50 but a lot of traders believe that once a stock breaks the $90 level it tends to make a run at $100. More aggressive traders could aim higher. I want to warn you that we don't have a lot of time. NKE is due to report earnings on March 17th.

I am not suggesting new positions at this time.

- Suggested Positions - (Small Positions Only!)

Long the March $85 calls (NKE1119C85) Entry @ $2.09

- or -

Long the April $90 calls (NKE1116D90) Entry @ $0.94

2nd position, buy the bounce from $85.50

Long the March $85 calls (NKE1119C85) Entry @ $3.20

- or -

Long the April $90 calls (NKE1116D90) Entry @ $1.86

02/25 New stop loss @ 84.80
02/24 New entry point, buy the bounce from $85.50, Add 2nd position
02/19 Adjusted final target to $91.50
02/18 1st Target Hit @ 88.00. March $85 call @ 3.75 (+79.4%)
02/18 1st Target Hit @ 88.00. April $90 call @ 1.80 (+91.4%)

chart:

Entry on February 15th at $85.25
Earnings Date 03/17/11 (confirmed)
Average Daily Volume = 2.2 million
Listed on February 9th, 2010


Occidental Petrol. - OXY - close: 103.15 change: -0.26

Stop Loss: 97.90
Target(s): 106.75, 109.75
Current Option Gain/Loss: -32.6%, and + 6.4%
2nd Positions Gain/Loss: +23.5%, and +16.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/05 update: Profit taking was limited in OXY on Friday and the stock was rebounding sharply into the closing bell. I would use this dip on Friday as a bullish entry point to buy calls.

Our plan was to use small positions to limit our risk. Don't forget that March calls expire in a couple of week.

Small Bullish Positions - Suggested Positions -

Long the March $105 calls (OXY1119C105) Entry @ $1.87

- or -

Long the April $105 calls (OXY1116D105) Entry @ $2.78

-2nd Position on bounce at $100 - Entry March 3rd -

Long the March $105 calls (OXY1119C105) Entry @ $1.02

- or -

Long the April $105 calls (OXY1116D105) Entry @ $2.54

03/03 OXY gapped open higher at $101.71, affecting our new entry
03/02 Buy calls on this bounce near $100 (2nd positions listed)
03/02 New stop loss at $97.90
02/28 Adjusted entry strategy. Buy calls now!

chart:

Entry on March 1st at $104.12
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 4.9 million
Listed on February 22nd, 2010


Quality Systems Inc. - QSII - close: 81.53 change: -0.24

Stop Loss: 77.90
Target(s): 87.25, 94.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: QSII did not see a lot of change on Friday. Considering the market's weakness that means QSII was showing some strength. I don't see any changes from my Thursday night comments and would still buy calls now at current levels. There is still a good chance that QSII will see additional short covering.

Prior Comments:
FYI: Readers will be interested to note that the most recent data listed short interest in QSII at almost 28% of the very small 17.5 million-share float. That's definitely a recipe for a short squeeze. Plus, the Point & Figure chart for QSII is bullish with a $119 target.

- Suggested Positions -

Long the April $85 calls (QSII1116D85) Entry @ $1.35

- or -

Long the June $85 calls (QSII1118F85) Entry @ $3.40

chart:

Entry on March 4th at $81.44
Earnings Date 05/31/11 (unconfirmed)
Average Daily Volume = 154 thousand
Listed on March 3rd, 2010


Transocean Ltd. - RIG - close: 84.95 change: -0.40

Stop Loss: 79.75
Target(s): 89.50, 94.00
Current Option Gain/Loss: + 0.0%, and + 5.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Friday proved to be a quiet day for RIG with the stock consolidating sideways. There is no change from my prior comments and I would still buy calls now at current levels. Our profit targets are $89.50 and $94.00.

Please note that the March calls will likely be very volatile.

- Suggested Positions -

Long the March $85 calls (RIG1119C85) Entry @ $2.05

- or -

Long the April $85 calls (RIG1116D85) Entry @ $3.60

02/28 RIG hit our trigger @ 84.25

chart:

Entry on February 28th at $84.25
Earnings Date 05/05/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on February 26th, 2010


Ross Stores Inc. - ROST - close: 71.91 change: -0.50

Stop Loss: 69.75
Target(s): 74.90, 77.75
Current Option Gain/Loss: -25.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
03/05 update: Retail-related stocks are holding up reasonably well considering the huge gains in oil. Normally you would think that rising oil and thus gasoline prices would be bad for retailers since it means less money to spend on other items. Yet it seems investors are willing to overlook a temporary rise in oil as long as we continue to get favorable economic data. The healthy jobs report means more people have jobs and thus more consumers with money in their pockets.

On a short-term basis ROST has been trading sideways in the $71.00-73.00 zone. Readers may want to wait for a breakout past $73.00 before initiating positions. Don't forget that we will plan to exit ahead of the mid March earnings report. The Point & Figure chart for ROST is bullish with a $97 target.

- Suggested Positions -

Long the April $75 calls (ROST1116D75) Entry @ $1.60

03/03 New stop loss @ 69.75

chart:

Entry on March 1st at $72.55
Earnings Date 03/17/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on February 28th, 2010


The Toronoto-Dominion Bank - TD - close: 86.19 change: +0.07

Stop Loss: 80.90
Target(s): 84.00, 89.00
Current Option Gain/Loss: +359.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: TD continues to show strength in the fact that shares did not see much profit taking in spite of the market's weakness on Friday. The stock remains short-term overbought and due for a pull back. I am not suggesting new bullish positions at this time. Our final target remains $89.00.

More conservative traders may want to exit anyway just to lock in a gain!

- Suggested Positions -

Long the March $80.00 call (TD1119C80) Entry @ $1.35

03/03 new stop loss @ 80.90
03/03 Target exceeded. Gap higher at $84.73 vs. target $84.00
03/03 March $80 call opened @ $6.00 (+344.4%)
02/28 New stop loss @ 78.40
02/26 New stop loss @ 77.90
02/16 New stop loss @ 76.90

chart:

Entry on February 11th at $78.89
Earnings Date 03/03/11
Average Daily Volume = 583 thousand
Listed on February 10th, 2010


Proshares Ultra(long) Russell 2000 - UWM - close: 47.23 change: -0.32

Stop Loss: 43.49
Target(s): 49.75, 54.00
Current Option Gain/Loss: -12.7%, and +14.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Small Positions - UWM Position -

Long the April $48 calls (UWM1116D48) Entry @ $2.75

-2nd position (entry 2/25)-

Long the April $47 calls (UWM1116D46) Entry @ $2.50

chart:

02/26 New stop loss @ 43.49
02/25 April $47 call opened at $2.50
02/24 Add another position, April $47 calls
02/14 UWM opened at $46.90. Option opened @ $2.75

iShares Russell 2000 - IWM - close: 82.44 change: -0.36

Stop Loss: 79.20
Target(s): 84.95, 87.25
Current Option Gain/Loss: -11.9%, and +17.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/05 update: Traders were still buying the dips in small caps and these ETFs were rebounding higher into the final minutes of trading. While I would prefer to launch new positions on a dip or bounce near the rising 50-dma we may not see a dip that low for a while. Nimble traders may want to initiate positions now.

Small Positions - IWM Position -

Long the April $84 calls (IWM1116D84) Entry @ $1.92

-2nd position (entry 2/25)-

Long the April $82 calls (IWM1116D82) current ask @ $2.35

02/26 New stop loss @ 79.20
02/25 April $82 call opened at $2.35
02/24 Add another position (April $82 calls)
02/14 IWM opened @ 82.11. Option opened @ 1.92

chart:

UWM Entry on February 14th at $46.90
IWM Entry on February 14th at $82.11
Listed on February 12th, 2010


Waters Corp. - WAT - close: 87.00 change: +2.35

Stop Loss: 81.80
Target(s): 86.00, 89.90
Current Option Gain/Loss: +177.7%, and +100.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: Target achieved. WAT displayed some impressive relative strength on Friday with a +2.7% gain on rising volume. The stock surged past potential resistance at $85 and hit our first target to take profits at $86.00. I am raising our stop loss to $81.80. I am not suggesting new bullish positions at this time. Our final target is $89.90.

FYI: The March calls will likely be very volatile.

- Suggested Positions -

Long the March $85 calls (WAT1119C85) Entry @ $0.90

- or -

Long the April $85 calls (WAT1116D85) Entry @ $1.75

03/05 New stop loss @ 81.80
03/04 1st Target Hit @ $86.00. Options @ +100%, and +57.1%
The March $85 was bid near $1.80, the April $85s near $2.75.

chart:

Entry on February 28th at $82.61
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 876 thousand
Listed on February 26th, 2010


CLOSED BULLISH PLAYS

CBOE Market Volatility Index - VIX - close: 19.06 change: +0.46

Stop Loss: N/A
Target(s): 22.50, 28.00
Current Option Gain/Loss: -59.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/05 update: Continued violence in Libya and worries about the global oil supply sent crude oil higher and stocks lower throughout most of the day. The bulls finally stepped in before the closing bell to buy the dip. The bounce in stocks sucked the wind out of the rally in the VIX.

On Thursday I proposed that we exit our bullish positions early on Friday. Our play is closed.

- Suggested Positions -

2011 March $22.50 calls (VIX1116C22.5) Entry @ $1.60

03/04 Exit at the close. Option @ $0.65 (-59.3%)
03/03 Plan to exit tomorrow at the closing bell
02/28 Consider an early exit now.
02/23 1st Target Hit @ 22.50, Option @ 2.35 (+46.8%)

chart:

Entry on January 26th at $17.00
Earnings Date --/--/--
Average Daily Volume =
Listed on January 25th, 2010