Editor's Note:

Stocks sold off across the market but energy stocks were some of the hardest hit. We had several trades get stopped out. Tomorrow could be another brutal day if the protests in Saudi turn violent. News that Saudi riot police fired on protestors with non-lethal bullets was enough to accelerate the declines late this afternoon. At the same time, the market has been holding its breath over this "day of rage" for a while now and stocks could rebound with a big sigh of relief tomorrow if headlines are quiet.

In other news I'm curious to see if Apple Inc. (AAPL) will rally from technical support near its 50-dma or will it see a sell-the-news reaction as the company launches its iPad 2 sales tomorrow.

-James

Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 102.23 change: -1.57

Stop Loss: 97.75
Target(s): 104.85, 109.00
Current Option Gain/Loss: -20.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: CERN is still holding up reasonably well. Traders bought the dip again near the $101 area and CERN rallied off its intraday lows. I would stay cautious here. We might get a better entry point to buy a dip near $100 soon. Let's wait and see how the market reacts to the "day of rage" tomorrow. 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


Cognizant Technology Solutions - CTSH - close: 76.11 change: -2.30

Stop Loss: 74.75
Target(s): 82.25, 84.75
Current Option Gain/Loss: -36.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/10 update: Profit taking in CTSH produced a -2.9% decline. Shares might see a dip near $75 and its 50-dma. I would wait for that dip or a bounce from $75 before initiating new positions. More conservative traders just want to step back and see how the market closes on Friday before considering new bullish positions. 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

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: 70.40 change: -2.40

Stop Loss: 67.40
Target(s): 77.00, 79.90
Current Option Gain/Loss: -34.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/10 update: Heavy selling in tech stocks produced a -3.2% decline in CTXS. Shares are now testing support near $70.00 and its six-week trend of higher lows. This dip can be used as a new bullish entry point but readers may want to step back and wait to see how the market trades following the "day of rage" in Saudi tomorrow.

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


Fastenal Co. - FAST - close: 61.59 change: -1.18

Stop Loss: 59.90
Target(s): 67.25
Current Option Gain/Loss: -88.2%, and -31.1%
2nd Position Option Gain/Loss: -50.0%, and - 9.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/10 update: FAST is holding up reasonably well. If the weakness continues tomorrow we can expect FAST to retest support near $60.00. The problem is that further weakness in the major indices will only confirm the market breakdown and FAST may not hold the $60 level. I would be very cautious tomorrow before considering new bullish positions.

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: 102.03 change: -1.97

Stop Loss: 99.95
Target(s): 109.50
Current Option Gain/Loss: -60.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
03/10 update: Warning! The action today in FDS is a short-term bearish breakdown from its two-week consolidation pattern. The stock settled on technical support at its 40-dma and should still have some psychological, round-number support at $100 (and its 50-dma). However, we only have two days left for this play to work. More conservative traders will want to strongly consider an early exit right now. I am not suggesting new positions at this time.

The plan was to use small positions to limit our risk. 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: 83.28 change: -1.55

Stop Loss: 79.40
Target(s): 82.00, 88.00
Current Option Gain/Loss: +185.7%, and +123.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: Today proves that FOSL is invulnerable to the recent market weakness. Shares actually saw some profit taking and almost erased yesterday's gains. I would expect a dip back toward the $80 area if the major indices continue to sink. I am not suggesting new positions at this time. More conservative traders may want to exit early now. 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


IntercontinentalExchange, Inc. - ICE - cls: 127.59 chg: -3.34

Stop Loss: 125.75
Target(s): 138.00, 148.00
Current Option Gain/Loss: -57.8%, and -38.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: ICE's breakdown under $130 does not bode well for the bulls. The low today was $126.72. If the market continues lower on Friday we will probably get stopped out at $125.75. I am not suggesting new positions at this time.

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: 95.91 change: -3.04

Stop Loss: 93.85
Target(s): 102.50, 109.00
Current Option Gain/Loss: -74.2%, and -35.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: JLL completely erased yesterday's big gain. The stock tested the $95 level and its 40-dma this morning before paring its losses. More conservative traders may want to raise their stops near the $95 mark. I am raising our stop to $93.85 because I suspect JLL will pull back toward the $94.00 level again before bouncing. I am not suggesting new positions at this time.

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

03/10 New stop loss @ 93.85

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: 90.01 change: -3.16

Stop Loss: 88.75
Target(s): 94.50, 99.00
Current Option Gain/Loss: - 24.5%, and - 8.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: Ouch! MMM just erased two week's worth of gains in today's decline. The stock fell toward round-number support at $90.00. A bounce from here could be used as an entry point. More conservative traders might want to raise their stops.

- 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: 88.18 change: -0.77

Stop Loss: 84.80
Target(s): 88.00, 91.50
Current Option Gain/Loss: + 86.6%, and +114.8%
2nd Position Gain/Loss: + 21.8%, and + 8.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: NKE is really holding up pretty well considering the market's weakness. Conservative traders may want to consider an early exit anyway since further weakness in the major averages would confirm the breakdown and that could spark some real profit taking in NKE. 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%)

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


Quality Systems Inc. - QSII - close: 81.96 change: -0.77

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

Comments:
03/10 update: QSII is holding up pretty well. Traders bought the dip near $80.50 and the stock erased most of its intraday lows. As long as the major market indices don't see further weakness I would buy calls on QSII at these levels. (FYI: options values are back to breakeven +0.0%)

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


Ross Stores Inc. - ROST - close: 70.56 change: -0.73

Stop Loss: 69.75
Target(s): 74.90, 77.75
Current Option Gain/Loss: -50.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
03/10 update: ROST pulled back toward support near $70.00. If the protests in Saudi turn violent and oil rises tomorrow I would expect ROST to breakdown and hit our stop loss at $69.75.

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


Stericycle Inc. - SRCL - close: 86.35 change: -1.34

Stop Loss: 84.95
Target(s): 94.00, 99.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
03/10 update: SRCL only suffered a mild pull back from its highs. We are waiting for a breakout past resistance at $88.00. I am suggesting a trigger to buy calls at $88.25. If triggered our targets are $94.00 and $99.00. The $90 level could be round-number resistance but after four weeks of consolidating sideways I'm not expecting $90 to be an issue. Let's keep our position size small to limit our risk.

Trigger @ 88.25

- Suggested Positions -

Buy the April $90 calls (SRCL1116D90) current ask $1.60

- or -

Buy the May $95 calls (SRCL1121E95) current ask $1.10

Entry on March xxth at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 481 thousand
Listed on March 9th, 2010


The Toronoto-Dominion Bank - TD - close: 85.20 change: -0.87

Stop Loss: 80.90
Target(s): 84.00, 89.00
Current Option Gain/Loss: +285.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: TD is also holding up reasonably well, especially considering the weakness in financials today. I am still suggesting that we exit our March calls (currently our only position) in TD on Friday (tomorrow) at the closing bell.

- Suggested Positions -

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

03/10 Prepare to exit tomorrow
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: 44.37 change: -2.31

Stop Loss: 43.49
Target(s): 49.75, 54.00
Current Option Gain/Loss: -50.9%, and -32.0%
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: 79.97 change: -2.11

Stop Loss: 79.20
Target(s): 84.95, 87.25
Current Option Gain/Loss: -53.6%, and -32.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/10 update: There was clearly a "risk off" trade today as investors sought safe havens for their money. Small caps are just the opposite so the Russell 2000 underperformed on Thursday. Both the UWM and IWM broke down under technical support levels and their rising 50-dma. Yet neither hit our stop loss - at least not yet. If the day of rage protests in Saudi turn violent tomorrow then stocks around the global could see further weakness and I would expect these trades to get stopped out. There is a chance the UWM and IWM could actually gap open lower on us. I am not suggesting new bullish positions at this time. We wanted 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: 85.01 change: -1.96

Stop Loss: 82.80
Target(s): 86.00, 89.90
Current Option Gain/Loss: + 27.7%, and + 40.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: WAT naturally saw some profit taking on Thursday. Shares look headed for what should be short-term support in the $84.00-83.75 zone. I am raising our stop loss to $82.80. More conservative traders may want to inch theirs even higher if you haven't exited already. 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

03/10 New stop loss @ 82.80
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

Peabody Energy Corp. - BTU - close: 61.59 change: -3.78

Stop Loss: 64.75
Target(s): 69.75, 74.00
Current Option Gain/Loss: -87.8%, and -24.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/10 update: Widespread market declines pushed stocks lower but energy names were especially hard hit. BTU plunged -5.7% and broke through several layers of short-term support. The stock gapped open at $63.86, which was below our stop loss at $64.75 so the play was closed immediately this morning.

- Suggested Positions -

March $70 calls (BTU1119C70) Entry @ $1.07, Exit @ $0.13 (-87.8%)

- or -

June $70 calls (BTU1118F70) Entry @ $3.60, Exit @ $2.73 (-24.1%)

03/10 BTU gaps down under stop loss. Options @ -87.8% and -24.1%
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: 76.46 change: -0.86

Stop Loss: 74.85
Target(s): 79.75, 84.50
Current Option Gain/Loss: -86.3%, and -49.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: BWA was not immune to the market's weakness this morning. The stock gapped open lower at $75.93 and quickly fell to an intraday low of $74.85. That just happens to be our stop loss so the play is now closed even though BWA rebounded off its intraday lows. I'd keep BWA on your watch list for a test of the $70.00 level or a breakout past $78.00 as possible entry points. Our plan was to use small positions to limit our risk.

SMALL bullish positions

March $80 calls (BWA1119C80) Entry @ $1.10, Exit @ $0.15 (-86.3%)

- or -

April $80 calls (BWA1116D80) Entry @ $2.47, Exit @ $1.25 (-49.3%)

03/10 BWA hit our stop @ 74.85. Options @ -86.3% & -49.3%
03/09 New stop loss @ 74.85

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: 98.39 change: -3.97

Stop Loss: 99.25
Target(s): 104.75, 107.50
Current Option Gain/Loss: -71.8%
2nd Option Gain/Loss: -35.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/10 update: A combination of headlines teamed up to send CAT lower. Negative economic news from Asian, Europe, and the U.S. all raised fears that the global economy might see a slow down. Shares of CAT saw a very negative reaction and broke support near $100 and broke down through the bottom of its rising bullish channel. Our stop loss was hit at $99.25.

- Suggested Positions -

March $105 calls (CAT1119C105) Entry @ $1.35, Exit @ $0.38 (-71.8%)

- or -

April $105 calls (CAT1116D105) Entry @ $2.78, Exit @ $1.80 (-35.2%)

03/10 Stopped out. Options @ -71.8% & -35.2%
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.

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


Check Point Software - CHKP - close: 48.14 change: -0.91

Stop Loss: 47.90
Target(s): 54.50
Current Option Gain/Loss: -84.6%, and -58.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/10 update: The market-wide sell-off produced an intraday breakdown in CHKP. Shares slipped through support near $48.00 and its 50-dma on an intraday basis. Our stop loss was hit at $47.90.

- Suggested Positions -

March $50 calls (CHKP1119C50) Entry @ $1.30, Exit @ $0.20 (-84.6%)

- or -

April $52.50 calls (CHKP1116D52.5) Entry @ $0.85, Exit @ $0.35 (-58.8%)

03/10 Stopped out. Options @ -84.6% & -58.8%

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


Devon Energy - DVN - close: 86.08 change: -3.63

Stop Loss: 87.75
Target(s): 94.85, 99.00
Current Option Gain/Loss: -58.1%, and -34.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: Ouch! Some of the energy stocks were just crushed on Thursday. DVN gapped open lower at $88.65 and quickly hit our stop loss at $87.75. Shares eventually settled with a -4.0% decline. It was our plan to keep our position size small to limit our risk.

- Small Bullish Positions -

April $95 calls (DVN1116D95) Entry @ $1.60, Exit @ $0.67 (-58.1%)

- or -

July $95 calls (DVN1116G95) Entry @ $4.30, Exit @ $2.80 (-34.8%)

03/10 Stopped out. Options @ -58.1% & -34.8%

chart:

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


Hess Corp - HES - close: 78.74 change: -4.26

Stop Loss: 81.60
Target(s): 92.25, 98.50
Current Option Gain/Loss: -73.0%, and -55.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: HES is another energy stock that was hammered lower on Thursday. Shares gapped open under recent support and quickly broke down under its 50-dma and hit our stop loss at $81.60. The sell-off continued and HES broke through the $80 mark to close with a -5.1% loss on the session.

- Suggested Positions -

April $90 calls (HES1116D90) Entry @ $2.60, Exit @ $0.70 (-73%)

- or -

May $90 calls (HES1121E90) Entry @ $4.15, Exit @ $1.85 (-55.4%)

03/10 Stopped out. Options @ -73% & -55.4%
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


Occidental Petrol. - OXY - close: 97.43 change: -3.44

Stop Loss: 97.90
Target(s): 106.75, 109.75
Current Option Gain/Loss: -85.5%, and -47.8%
2nd Positions Gain/Loss: -73.5%, and -42.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/10 update: If you were an energy stock you had a bad day today. OXY was no exception. Shares gapped open lower at $99.93, under round-number support at the $100.00 mark and shares plunged through the 50-dma. Our stop loss was hit at $97.90. Our plan was to use small positions to limit our risk.

Small Bullish Positions - Suggested Positions -

March $105 calls (OXY1119C105) Entry @ $1.87, Exit @ $0.27 (-85.5%)

- or -

April $105 calls (OXY1116D105) Entry @ $2.78, Exit @ $1.45 (-47.8%)

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

March $105 calls (OXY1119C105) Entry @ $1.02, Exit @ $0.27 (-73.5%)

- or -

April $105 calls (OXY1116D105) Entry @ $2.54, Exit @ $1.45 (-42.9%)

03/10 Stopped out. Options @ -85.5%, -47.8%, -73.5%, and -42.9%
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


Transocean Ltd. - RIG - close: 78.97 change: -3.53

Stop Loss: 79.75
Target(s): 89.50, 94.00
Current Option Gain/Loss: -83.9%, and -54.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: Yup, you guessed it. RIG, another oil service stock, was swept up in the energy stock sell-off. Shares fell -4.2% and broke support near $80 and traded under the 50-dma. Our stop loss was hit at $79.75.

- Suggested Positions -

March $85 calls (RIG1119C85) Entry @ $2.05, Exit @ $0.33 (-83.9%)

- or -

April $85 calls (RIG1116D85) Entry @ $3.60, Exit @ $1.65 (-54.1%)

03/10 Stopped out. Options @ -83.9% and -54.1%
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