Editor's Note:

Stocks posted widespread losses on Monday but declines could have been worse as traders bought the dip midday. Our small cap ETF trades have been stopped out. Our FDS play was closed as planned. Our SRCL call play has been triggered.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 353.56 change: +1.57

Stop Loss: 344.00
Target(s): 364.00, 379.00
Current Option Gain/Loss: + 4.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/14 update: AAPL managed to outperform the major averages. Shares rallied +0.44% versus widespread losses for the market. The stock gapped open at $353.18 but the initial rally didn't make it very far. Readers may want to wait for a dip into the $350-345 zone as your bullish entry point.

This is an aggressive, higher-risk trade so we want to keep our position size small to try and limit our risk. FYI: The Point & Figure chart for AAPL is bullish with a $448 target.

- Small Bullish Positions -

Long the April $365 calls (AAPL1116D365) Entry @ $6.00

Entry on March 14th at $353.18
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume = 18 million
Listed on March 12th, 2010


Cerner Corp. - CERN - close: 103.53 change: +0.33

Stop Loss: 99.45
Target(s): 104.85, 109.00
Current Option Gain/Loss: -11.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: CERN was showing relative strength this morning thanks to an analyst upgrade. The stock came close to testing recent resistance at the $105.00 level. I am not suggesting new positions at these levels. Wait for a breakout over $105.00 or look for a dip near $102.00-101.50.

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

03/12 New stop loss @ 99.45
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: 75.37 change: -1.00

Stop Loss: 74.75
Target(s): 82.25, 84.75
Current Option Gain/Loss: -55.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/14 update: We had a close call with CTSH today. The market's weakness pushed shares of CTSH down to $74.79. Our stop loss is at $74.75. The fact that CTSH didn't show more weakness is a positive sign. We can still buy calls at these levels but given the market weakness readers may want to wait.

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: 71.06 change: -0.68

Stop Loss: 67.90
Target(s): 77.00, 79.90
Current Option Gain/Loss: -27.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/14 update: Monday brought more of the same for CTXS. Shares continue to bounce around the $70-72 zone. The fact that shares held the $70.00 level is a bullish sign in my book but if the market continues to sink CTXS will likely follow it lower. Readers may want to raise their stops toward Thursday's low of $69.61.

I do consider this a slightly more aggressive trade. 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

03/12 New stop loss @ 67.90

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: 61.25 change: -0.57

Stop Loss: 59.90
Target(s): 67.25
Current Option Gain/Loss: - 100%, and -55.5%
2nd Position Option Gain/Loss: - 100%, and -34.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/14 update: FAST flirted with a breakdown under its 50-dma but managed a rebound by the close. Shares could still be headed for recent support near the $60.00 level. The low today was $60.49. I would still consider new positions on dips near $60.

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


Fossil, Inc. - FOSL - close: 82.43 change: -0.12

Stop Loss: 79.40
Target(s): 82.00, 88.00
Current Option Gain/Loss: +103.5%, and + 92.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: FOSL ended the session with a minor loss. Traders bought the dip near $80.50 and shares look poised to raise from here. I would use this afternoon bounce as a new entry point to buy April calls. However, I would keep positions small because the market still looks vulnerable to more selling pressure. 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


Jones Lang Lasalle Inc. - JLL - close: 98.54 change: -1.42

Stop Loss: 93.85
Target(s): 102.50, 109.00
Current Option Gain/Loss: -45.7%, and + 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: The action in JLL was not that bad considering the stock had stalled at resistance and the market witnessed a widespread decline. While I'm not suggesting new positions JLL still looks poised to move higher.

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: 91.02 change: -0.59

Stop Loss: 88.75
Target(s): 94.50, 99.00
Current Option Gain/Loss: - 12.0%, and + 1.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: Once again traders bought the dip near $90.00 and its 50-dma. The afternoon bounce looks like another entry point to buy calls. However, since the major market indices look vulnerable to more selling readers may want to wait for a move over $92.00 before considering new positions in MMM. More conservative traders might want to raise their stops toward Friday's low (89.71). March calls expire in five trading days.

- 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: 86.21 change: -0.96

Stop Loss: 84.80
Target(s): 88.00, 91.50
Current Option Gain/Loss: + 14.8%, and + 34.0%
2nd Position Gain/Loss: - 25.0%, and - 32.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: Ouch! It's painful watching our gains in NKE wilt lower. Fortunately traders bought the dip in NKE near technical support at its 50 and 100-dma. The late afternoon bounce could be used as a new entry point to buy calls. However, we're almost out of time. Earnings are due on March 17th. More conservative traders may want to raise their stops toward today's low (85.36).

We will plan on exiting Thursday at the close to avoid holding over earnings.

- 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


Norfolk Southern Corp. - NSC - close: 65.93 change: -0.60

Stop Loss: 63.90
Target(s): 69.75, 74.00
Current Option Gain/Loss: + 2.0%, and -21.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: The lack of follow through on Friday's bullish breakout is a little concerning but given the widespread losses across the global equity markets I'm not surprised NSC opened lower. Shares gapped open at $65.84 and dipped toward the $65 level before rebounding. I would use this bounce from $65 as a new entry point to buy calls. However, given the market's recent weakness we will want to keep our position size small to limit our risk.

- Suggested Positions -

Long the April $65 calls (NSC1116D65) Entry @ $2.50

- or -

Long the April $70 calls (NSC1116D70) Entry @ $0.70

Entry on March 14th at $65.84
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.1 million
Listed on March 12th, 2010


Quality Systems Inc. - QSII - close: 81.39 change: -0.63

Stop Loss: 77.90
Target(s): 87.25, 94.50
Current Option Gain/Loss: -18.5%, and - 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: Monday was another quiet day for QSII. Shares slowly faded lower and look like they are headed for short-term support near $80 and the 30-dma. Look for a new entry point there. More conservative traders might want to raise their stops closer toward $80.

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


Stericycle Inc. - SRCL - close: 87.92 change: +1.05

Stop Loss: 84.95
Target(s): 94.00, 99.00
Current Option Gain/Loss: - 9.6%, and -13.0%
Time Frame: 6 to 8 weeks
New Positions: see trigger

Comments:
03/14 update: SRCL was showing relative strength today. Shares slowly climbed toward resistance near $88.00 and hit $88.28 late in the day. Our trigger to buy calls was hit at $88.25. Readers may want to wait for a little bit confirmation and look for a move to $88.30 before initiating new positions now. Or more nimble traders could try and buy a dip near the $86 area. 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.

- Suggested (SMALL) Positions -

Long the April $90 calls (SRCL1116D90) Entry @ 1.55

- or -

Long the May $95 calls (SRCL1121E95) Entry @ 1.15

chart:

Entry on March 14th at $88.25
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 481 thousand
Listed on March 9th, 2010


Waters Corp. - WAT - close: 84.73 change: -0.64

Stop Loss: 83.40
Target(s): 86.00, 89.90
Current Option Gain/Loss: + 22.2%, and + 25.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: WAT spent the session bouncing around the $86-84 zone. The fact that WAT held support near $84.00 is encouraging. I'm a little hesitant to launch new positions here but you could do it and just place your stop close to $84.00. 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

03/12 New stop loss @ 83.40
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


Wynn Resorts Ltd. - WYNN - clos: 123.99 change: +0.20

Stop Loss: 119.75
Target(s): 129.75, 137.50
Current Option Gain/Loss: + 7.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/14 update: Our new play in WYNN is off to a good start. Shares opened at $122.48 and dipped toward Friday's low near $120.50 before rebounding. That's close enough to support near $120.00 and WYNN's rising 50-dma for me. The move looks like a mini-double bottom (bullish) pattern. I would still consider calls on this bounce. However, I want to remind you that this is an aggressive, higher-risk trade. We want to keep our position size small to limit our risk. We'll start with a stop loss at $119.75.

- small bullish positions -

Long the April $130 calls (WYNN1116D130) Entry @ $2.84

Entry on March 14th at $122.48
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 12th, 2010


PUT Play Updates

Joy Global Inc. - JOYG - close: 90.61 change: +0.05

Stop Loss: 94.25
Target(s): 85.25
Current Option Gain/Loss: -12.4%
Time Frame: 3 to 6 weeks
New Positions: see below r

Comments:
03/14 update: Hmm... JOYG rallied toward the next level of resistance near $92 and its 50-dma and failed. Is this a new bearish entry point? It almost looks like one but I wouldn't mind waiting for a little more follow through lower before initiating new positions. More conservative traders may want to lower their stops toward the $92.50 area.

Our target is $85.25. Aggressive traders could aim for the $84 lows or a drop closer to $80.

- Suggested Positions -

Long the April $85 puts (JOYG1116P85) Entry @ $2.50

Entry on March 11th at $90.00
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on March 10th, 2010


CLOSED BULLISH PLAYS

FactSet Research Systems - FDS - close: 102.16 change: -0.27

Stop Loss: 99.95
Target(s): 109.50
Current Option Gain/Loss: -65.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
03/14 update: Our time has run out. We wanted to exit today at the closing bell to avoid holding over FDS' earnings report due out tomorrow morning. Shares didn't see much action. The stock tagged a new two-week low only to bounce back to almost unchanged. It was our plan to keep our position size small to limit our risk.

small positions - Suggested Positions -

March $105 calls (FDS1119C105) Entry @ $2.15, Exit @ 0.75 (-65.1%)

03/14 Planned exit at the closing bell. Option @ -65.1%
03/12 Prepare to exit on Monday.

chart:

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


Proshares Ultra(long) Russell 2000 - UWM - close: 44.07 change: -0.45

Stop Loss: 43.49
Target(s): 49.75, 54.00
Current Option Gain/Loss: -61.8%, and -48.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Small Positions - UWM Position -

April $48 calls (UWM1116D48) Entry @ $2.75, Exit @ 1.05 (-61.8%)

-2nd position (entry 2/25)-

April $47 calls (UWM1116D46) Entry @ $2.50 Exit @ 1.30 (-48%)

03/14 Stopped out at $43.49, Options @ -61.8% & -48%
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

chart:

iShares Russell 2000 - IWM - close: 79.75 change: -0.43

Stop Loss: 79.20
Target(s): 84.95, 87.25
Current Option Gain/Loss: -64.5%, and -44.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/14 update: Huge losses in Japan, widespread losses in Europe both teamed up to lead the U.S. market lower on Monday morning. The small caps were no exception. Both the UWM and IWM hit our stop losses this morning before paring their declines.

Prior comments:
We wanted to keep our position size small to limit our risk.

Small Positions - IWM Position -

April $84 calls (IWM1116D84) Entry @ $1.92, Exit @ $0.68 (-64.5%)

-2nd position (entry 2/25)-

April $82 calls (IWM1116D82) Entry @ @ $2.35, Exit @ $1.30 (-44.6%)

03/14 Stopped out @ 79.20, Options @ -64.5% & -44.6%
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