Editor's Note:

There was a clear lack of leadership for the bulls on Wednesday. Meanwhile tech stocks suffered renewed weakness thanks to the semiconductor stocks. The breakdown in the chips could spark a wider sell-off in the NASDAQ. Traders need to stay on the defensive. I have adjusted stop losses for BWA, CAT, and FOSL. Our new play in CTSH has been triggered. BHI has been stopped out.

-James

Current Portfolio:


CALL Play Updates

Peabody Energy Corp. - BTU - close: 65.37 change: -2.38

Stop Loss: 64.75
Target(s): 69.75, 74.00
Current Option Gain/Loss: -80.3%, and -12.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Coal stocks as a group trended lower but BTU really underperformed with a -3.5% loss. There was no specific news behind the stock's relative weakness. Shares are now testing the $65 level but the close under $66 is short-term bearish. Thus far the action this week is definitely painting a big bearish reversal pattern on BTU's weekly chart. More conservative traders may want to exit early. If this action continues tomorrow we will likely be stopped out at $64.75. I am not suggesting new positions at this time. <--

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

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: 77.32 change: +0.49

Stop Loss: 74.85
Target(s): 79.75, 84.50
Current Option Gain/Loss: -54.5%, and -29.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: BWA rebounded off its morning lows but remains under resistance near the $78.00 level. I am not suggesting new positions at this time. BWA has bounced above the $75.00 level twice in the past two weeks. I am moving our stop loss to $74.85.

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

03/09 New stop loss @ 74.85

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: 102.36 change: -1.77

Stop Loss: 99.25
Target(s): 104.75, 107.50
Current Option Gain/Loss: -39.2%
2nd Option Gain/Loss: - 7.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/09 update: CAT, much like the major market indices, is still churning sideways. The big picture trend is still up but I'm growing more cautious. Nimble traders might want to consider buying dips near the $100 area. Please note that I am raising our stop loss to $99.25.

- Suggested Positions -

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

- or -

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

03/09 New stop loss @ 99.25
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.

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: 103.80 change: +0.74

Stop Loss: 97.75
Target(s): 104.85, 109.00
Current Option Gain/Loss: + 3.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: CERN continues to rally from dips into the $101-102 zone and shares displayed relative strength with a +0.7% gain. The trend is still up but if the major indices breakdown odds are CERN will follow them lower. Trade cautiously. Readers may want to raise their stop loss closer to the $100 level. 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%)

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: 49.05 change: -0.07

Stop Loss: 47.90
Target(s): 54.50
Current Option Gain/Loss: -69.2%, and -41.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09 update: CHKP spent the day churning sideways. Nimble traders could try buying dips (or bounces) from the $48.00 level again but honestly, I am growing cautious on this stock. The tech-heavy NASDAQ could lead technology stocks lower.

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

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


Cognizant Technology Solutions - CTSH - close: 78.41 change: +0.63

Stop Loss: 74.75
Target(s): 82.25, 84.75
Current Option Gain/Loss: - 5.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Good news! We did not have to wait very long for CTSH to breakout and hit our trigger. Shares were showing relative strength today and rallied through resistance at $78.00. Our trigger to buy calls was hit afternoon at $78.25. Given CTSH's strength into the close I would still consider new positions now. We have a stop at $74.75. Our targets are $82.25 and $84.75.

FYI: The Point & Figure chart for CTSH is bullish with a $105 target. Plus, a breakout past $78 would produce a new quadruple top breakout buy signal.

- Suggested Positions -

Long the April $80 calls (CTSH1116D80) Entry @ $1.80

Annotated Chart:

Entry on March 9th at $78.25
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on March 8th, 2010


Citrix Systems Inc. - CTXS - close: 72.80 change: +0.31

Stop Loss: 67.40
Target(s): 77.00, 79.90
Current Option Gain/Loss: + 2.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/09 update: CTXS is still drifting higher but the stock has yet to really breakout past its February highs. There is no change from my prior comments. I would use a dip near $70 as a new entry point.

I do consider this a slightly more aggressive trade. We'll put our stop loss under last week's low and under its 50-dma. Our targets are $77.00 and $79.90. The Point & Figure chart for CTXS is bullish with a $94 target.

- Small Bullish Positions -

Long the April $75 calls (CTXS1116D75) Entry @ $2.20

Entry on March 7th at $71.89
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on March 5th, 2010


Devon Energy - DVN - close: 89.71 change: -0.25

Stop Loss: 87.75
Target(s): 94.85, 99.00
Current Option Gain/Loss: -33.7%, and -19.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: It was a quiet day for DVN. Energy stocks struggled as crude oil faded from its morning rally. DVN still has a bullish trend of higher lows and readers could open positions here but remember to keep positions small. Alternatively you could wait for a breakout past $92. Our exit targets are $94.85 and $99.00. Let's keep our position size small since the market has been a little bit volatile lately.

- Small Bullish Positions -

Long the April $95 calls (DVN1116D95) Entry @ $1.60

- or -

Long the July $95 calls (DVN1116G95) Entry @ $4.30

Entry on March 7th at $91.35
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on March 5th, 2010


Fastenal Co. - FAST - close: 62.77 change: +0.33

Stop Loss: 59.90
Target(s): 67.25
Current Option Gain/Loss: -87.5%, and -15.5%
2nd Position Option Gain/Loss: -25.0%, and +16.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/09 update: FAST displayed a little strength today and posted a +0.5% gain. The stock looks poised to move higher but the $63.50 zone remains overhead resistance. I would not open new positions at this time.

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

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: 104.00 change: -0.25

Stop Loss: 99.95
Target(s): 109.50
Current Option Gain/Loss: -30.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
03/09 update: FDS has spent the last two weeks in a neutral consolidation pattern of lower highs and higher lows. This consolidation has narrowed to the point where a breakout should be imminent. While this is supposed to be a neutral pattern the prevailing trend (in this case - up) usually continues. Readers could use a new rally past $105 as their entry point for bullish positions.

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

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


Fossil, Inc. - FOSL - close: 84.83 change: +1.62

Stop Loss: 79.40
Target(s): 82.00, 88.00
Current Option Gain/Loss: +271.4%, and +161.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: Wow! I am impressed by the relative strength in shares of FOSL. The stock continues to rally and shares just broke out past its February high with today's +1.9% gain. FOSL is now short-term overbought. I would not launch new positions here. Please note our new stop loss at $79.40. Our final target is $88.00.

- Suggested Positions -

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

- or -

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

03/09 New stop loss @ 79.40
03/05 New stop loss @ 76.75
03/05 1st Target Hit @ $82.00, Options @ +142% and +92.3%
03/03 new stop loss @ 74.75

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: 83.10 change: -0.71

Stop Loss: 81.60
Target(s): 92.25, 98.50
Current Option Gain/Loss: -57.6%, and -45.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: HES is slipping closer and closer to technical support at its rising 40-dma (and its trendline of higher lows). This dip "should" be a new bullish entry point but readers may want to wait for a new bounce over $84.25 or $85.00 before initiating new positions. More conservative traders might want to inch up their stops closer to the $82.00 mark.

<-- 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

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: 130.93 chg: -1.01

Stop Loss: 125.75
Target(s): 138.00, 148.00
Current Option Gain/Loss: -10.9%, and - 5.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: ICE shaved off another dollar as it drifted back toward the $130 level. This should be new short-term support but readers may want to wait for a bounce. If you're launching positions here you might want a tighter stop loss. Our first target to take profits is at $138.00.

Prior comments:
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

03/07 New stop loss @ 125.75

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: 98.95 change: +2.25

Stop Loss: 93.30
Target(s): 102.50, 109.00
Current Option Gain/Loss: -25.7%, and - 5.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: There was a Bloomberg article out this morning quoting a JLL executive who suggested hotel acquisitions and mergers will rise this year thanks to strong occupancy and room rates. Investors might have been listening as JLL outperformed the market with a +2.3% gain. Shares have rallied right back to short-term resistance in the $99.50-100.00 zone. I'd like to see shares breakout over this level before initiating new positions.

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

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: 93.17 change: -0.58

Stop Loss: 88.75
Target(s): 94.50, 99.00
Current Option Gain/Loss: + 97.1%, and + 93.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: After climbing to a new multi-year high yesterday shares of MMM hit some profit taking today. The trend is higher. I would still consider April calls (with a $99 target). MMM is close to our $94.50 target. Our second and final target is $99.00.

- Suggested Positions -

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

- or -

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

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: 88.95 change: -0.24

Stop Loss: 84.80
Target(s): 88.00, 91.50
Current Option Gain/Loss: +115.3%, and +142.5%
2nd Position Gain/Loss: + 40.6%, and + 22.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: NKE spent the session consolidating sideways. There is no change from my prior comments. Currently our final target is $91.50. More aggressive traders may want to aim higher. However, the newsletter does not want to hold over NKE's earnings report, which is coming up soon on March 17th.

- 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%)

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: 100.87 change: -0.05

Stop Loss: 97.90
Target(s): 106.75, 109.75
Current Option Gain/Loss: -73.2%, and -24.4%
2nd Positions Gain/Loss: -50.9%, and -17.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/09 update: There is no change from my prior comments on OXY. Shares look headed for round-number support near $100.00. More conservative traders may want to raise their stop loss closer to the 50-dma near $99.15. I would wait for OXY to test $100 before initiating new positions.

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!

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: 82.73 change: +1.51

Stop Loss: 77.90
Target(s): 87.25, 94.50
Current Option Gain/Loss: +14.8%, and + 8.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: The action in QSII looks bullish. The stock rallied +1.8% to a new high and on above average volume. The breakout looks like a new entry point for calls. Just bear in mind that if the major averages breakdown I would expect QSII to reverse on us.

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

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: 82.50 change: -1.39

Stop Loss: 79.75
Target(s): 89.50, 94.00
Current Option Gain/Loss: -68.2%, and -30.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: There should be no surprises here. I have been suggesting that readers wait for a dip into the $82-80 zone as our next entry point to buy April calls. That decline could happen tomorrow. 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

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: 71.29 change: -0.04

Stop Loss: 69.75
Target(s): 74.90, 77.75
Current Option Gain/Loss: -37.5%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
03/09 update: There is no change from my prior comments on ROST. The stock is still consolidating sideways in the $70-73 zone. If investors start to believe that higher oil prices will impact consumer spending then ROST and the retailers are likely headed lower. For the moment traders seem to be in a wait-and-see mode.

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

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: 86.07 change: +0.00

Stop Loss: 80.90
Target(s): 84.00, 89.00
Current Option Gain/Loss: +344.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/09 update: March options expire in seven trading days. We probably want to exit this position this week. If TD doesn't hit our final target at $89.00 by Friday then the newsletter will exit completely at Friday's closing bell. More aggressive traders could hold on but you'd only have five days left. I am not suggesting new bullish positions at this time.

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

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: 46.68 change: -0.44

Stop Loss: 43.49
Target(s): 49.75, 54.00
Current Option Gain/Loss: -20.0%, and + 6.0%
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

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: 82.08 change: -0.33

Stop Loss: 79.20
Target(s): 84.95, 87.25
Current Option Gain/Loss: -24.4%, and + 2.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/09 update: Wednesday proved to be a very quiet day for the small caps. The Russell 2000 index traded in a very narrow range. Investors are waiting for something and that something is probably Friday's day of rage in Saudi Arabia. Technically we can still buy dips near the rising 50-dma. We want to keep our position size small to limit our risk.

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

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: 86.97 change: -0.15

Stop Loss: 81.80
Target(s): 86.00, 89.90
Current Option Gain/Loss: +150.0%, and +100.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: WAT is holding up pretty well but shares remain short-term overbought. More conservative traders may just want to lock in a profit now. 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.

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

Baker Hughes Inc. - BHI - close: 68.33 change: -0.63

Stop Loss: 67.90
Target(s): 74.75, 79.00
Current Option Gain/Loss: -85.2% and -60.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/09 update: Strength in crude oil this morning quickly faded and energy stocks faded lower with the commodity. BHI dipped under support at $68.00 late in the day and hit our stop loss at $67.90.

- Suggested Positions -

March $75 calls (BHI1119C75) Entry @ $1.02, exit @ 0.15 (-85.2%)

- or -

April $75 calls (BHI1116D75) Entry @ $2.13, exit @ 0.85 (-60%)

03/09 Stopped out @ 67.90, Options @ -85.2% and -60%

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