Editor's Note:

The market's early gains faded by the closing bell. Overall it was a lackluster session. We did see CSX hit one of our profit targets.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 73.76 change: +2.68

Stop Loss: 67.95
Target(s): 76.50, 79.75
Current Option Gain/Loss: +63.0% and +32.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/28 update: It was a relatively quiet day for the stock market but not for BHI. Some of the oil service plays were showing relative strength. BHI was one of them. The stock broke out again past resistance near $72.00 and tagged new two-year highs near $75 before paring its gains. Over the weekend I suggested waiting to buy calls on a move above $72.50. If you missed the entry point this morning you could look for a dip near the $73.00-72.50 zone. Our first target is $76.50. Our second target is $79.75. More aggressive traders could aim higher. FYI: If BHI can breakout past the $72.00 level it would create a new quadruple top breakout buy signal on its Point & Figure chart.

- Suggested Positions -

Long the April $75 calls (BHI1116D75) Entry @ $1.00

- or -

Long the May $75 calls (BHI1121E75) Entry @ $2.61

Entry on March 24th at $72.35 *gap higher*
Earnings Date 05/03/11 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on March 23rd, 2011


Baidu, Inc. - BIDU - close: 133.67 change: -1.25

Stop Loss: 124.00
Target(s): 139.00, 147.50
Current Option Gain/Loss: + 39.0%, and + 62.7%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/28 update: Reversal alert! The action in BIDU looks like a short-term bearish reversal. This isn't too surprised since I've been warning readers to look for a dip near the $130 or $125 areas. Wait for a dip or a bounce from support before considering new bullish positions.

Our first target to take profits is at $139.00. We will plan to exit ahead of BIDU's late April earnings report. BIDU can be a volatile stock so I would consider this a more aggressive, higher-risk trade.

- Suggested Positions -

Long the April $130 calls (BIDU1116D130) entry @ $3.20

- or -

Long the May $135 calls (BIDU1121E135) entry @ $5.10

03/26 New stop loss @ 124.00

Entry on March 22 at $127.00
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on March 21st, 2010


Caterpillar Inc. - CAT - close: 109.40 change: +0.31

Stop Loss: 103.75
Target(s): 109.00, 114.00
Current Option Gain/Loss: +35.2%, and +31.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/28 update: CAT tagged another new high. This time at $110.49 before spending most of the day hugging the $110 level. Nothing has changed from my prior comments. CAT looks short-term overbought and due for a dip. Our secondary target to exit is $114.00 but expect a dip first. I am not suggesting new positions at this time.

- Suggested Positions -

Long the April $105 calls (CAT1116D105) Entry @ $3.40

- or -

Long the May $110 calls (CAT1121E110) Entry @ $3.15

03/26/11 New stop loss @ 103.75
03/25/11 1st Target Hit @ 109.00, Options @ +58.8%, +37.7%

Entry on March 18th at $104.99 (gap higher)
Earnings Date 04/29/11 (unconfirmed)
Average Daily Volume = 7.4 million
Listed on March 17th, 2010


Capital One Financial - COF - close: 51.58 change: -0.65

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Option Gain/Loss: -13.3% and -66.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/28 update: Warning - the action in COF today looks like a short-term bearish reversal. I would expect a pull back toward support near $50 and its 50-dma. Wait for that pull back before launching new positions. Our targets are $54.75 and $59.00.

- Suggested Positions -

Long the April $50 call (COF1116D50) Entry @ $2.63

- or -

Long the April $55 call (COF1116D55) Entry @ $0.65

03/24 New stop loss @ 49.49

Entry on March 16th at $51.08
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 4.4 million
Listed on March 15th, 2010


CSX Corp. - CSX - close: 79.78 change: +0.62

Stop Loss: 73.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: +66.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/28 update: Target achieved. CSX was showing some relative strength today. Shares hit $80.27 late this afternoon before paring its gains. Our first target to take profits was hit at $79.90. The option was trading with a bid near $1.90 at that time. I want to remind readers that CSX looks short-term overbought and due for some profit taking. I would expect a dip toward the $77-75 zone. Wait for the pull back before considering new bullish positions. Don't forget that we plan to exit before CSX reports earnings in two or three weeks.

Our plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for CSX is bullish with a $98 target.

- Small Bullish Positions -

Long the April $80 calls (CSX1116D80) Entry @ $1.06

03/28 1st Target Hit @ 79.90, Option @ $1.90 (+79.2%)

chart:

Entry on March 21 at $77.25
Earnings Date 04/13/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on March 19th, 2010


Jones Lang Lasalle Inc. - JLL - close: 100.91 change: -0.51

Stop Loss: 95.40
Target(s): 102.50, 109.00
Current Option Gain/Loss: - 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/28 update: Monday was a quiet session for JLL. Shares spent the day in a relatively narrow range. There is no change from my weekend comments. There is a good chance JLL will retest the $100 level soon and possibly the $98 level again. Wait for the dip or a bounce before considering new bullish positions.

Prior Comments:
We wanted to keep our position size small to limit our risk. Our targets are $102.50 and $109.00.

- Suggested Positions - (Small Positions)

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

03/24 New stop loss @ 95.40
03/17 Exited March calls @ open, Estimated exit @ 0.10 (-94.2%)
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


Norfolk Southern - NSC - close: 68.77 change: +0.09

Stop Loss: 64.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: +40.0%, and +21.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/28 update: NSC spent the entire session in a narrow range struggling with resistance at the $69.00 level. Readers may want to wait for a dip into the $67.50-66.00 zone before launching new positions. Our targets are $72.00 and $74.90. We do not want to hold past NSC's late April earnings report.

- Suggested Positions -

Long the April $70 calls (NSC1116D70) Entry @ $0.50

- or -

Long the May $70 calls (NSC1121E70) Entry @ $1.40

Entry on March 25th at $67.84
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on March 24th, 2011


Polaris Industries, Inc. - PII - close: 84.35 change: -0.76

Stop Loss: 79.75
Target(s): 84.95, 89.00
Current Option Gain/Loss: -12.5%
Time Frame: 4 to 7 weeks
New Positions: see trigger

Comments:
03/28 update: PII hit some profit taking on Monday but that's not surprising. I am suggesting readers look for a dip near the rising 10-dma before considering new bullish positions.

Our plan was to keep our position size small. FYI: The Point & Figure chart for PII is bullish with a $98 target.

- Small Positions -

Long the April $85 calls (PII1116D85) Entry @ 2.00

03/26/11 New stop loss @ 79.75
03/25/11 1st Target Hit @ 84.95, Option @ $2.10 (+5%)

Entry on March 18th at $82.25
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 396 thousand
Listed on March 14th, 2010


Panera Bread Co. - PNRA - close: 121.83 change: +0.99

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see TRIGGER

Comments:
03/28 update: There is no change from my weekend comments on PNRA. The stock is hovering near its highs. I am suggesting we wait for a breakout. We want to use a trigger at $123.55 to open small bullish positions in PNRA. If triggered we will start with a stop loss at $118.00. More conservative traders may want to consider a stop closer to $120.00. Our upside targets are $129.50 and $134.50. We do not want to hold over the late April earnings report but that date is currently unconfirmed.

FYI: PNRA is currently trading in the $120 area. The last time the company had a stock split it was back in June 2005 with shares in the $120s. You never know when they might announce a split although if they do it would probably be with their earnings report.

Trigger @ $123.55

- Suggested Positions -

Buy the April $125 call (PNRA1116D125) current ask $1.70

- or -

Buy the May $130 call (PNRA1121E130) current ask $2.80

Entry on March xxth at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 363 thousand
Listed on March 26th, 2011


Quality Systems Inc. - QSII - close: 82.08 change: +0.09

Stop Loss: 78.60
Target(s): 87.25, 94.50
Current Option Gain/Loss: -55.5%, and -13.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/28 update: QSII managed to eke out a gain on Monday, which is better than most of the market. Shares are still trading under resistance in the $82.50-83.00 zone. I would expect another dip near $81.00 or even $80 soon. Wait for the dip as our next entry point.

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

03/24 New stop loss @ 78.60

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


Whole Foods Market Inc. - WFMI - close: 63.36 change: -0.60

Stop Loss: 58.49
Target(s): 64.75, 69.00
Current Option Gain/Loss: +20.0%, and +19.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: After last week's gains WFMI finally hit some profit taking. I'm expecting a dip toward the $62-61 area. Wait for the dip before considering new bullish positions.

Our upside targets are $64.75 and $69.00. FYI: The Point & Figure chart for WFMI is bullish with an $86 target.

- Suggested Positions -

Long the April $65 calls (WFMI1116D65) Entry @ $0.65

- or -

Long the May $65 calls (WFMI1121E65) Entry @ $2.25

03/26/11 New stop loss @ 58.49

Entry on March 21 at $61.55
Earnings Date 05/11/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on March 19th, 2010


Wellpoint Inc. - WLP - close: 68.96 change: -0.38

Stop Loss: 65.75
Target(s): 72.25, 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see trigger

Comments:
03/28 update: WLP is getting closer! This past weekend we added WLP with a trigger to buy calls on the dip at $68.25. Shares slipped to $68.44 before bouncing intraday. There is no change from my prior comments.

If we are triggered at $68.25 our targets are $72.25 and $74.75. We do not want to hold over the late April earnings report.

FYI: Readers may want to keep their position size small. If WLP reverses lower following Friday's test of resistance at $70 it could look like a big, bearish double top pattern on the weekly chart.

Trigger @ 68.25

- Suggested Positions -

Buy the April $70 call (WLP1116D70) current ask $1.23

- or -

Buy the May $70 call (WLP1121E70) current ask $2.45

Entry on March xxth at $ xx.xx
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on March 26th, 2011


PUT Play Updates

Everest Re Group Ltd. - RE - close: 82.61 change: -0.34

Stop Loss: 84.25
Target(s): 76.00, 71.00
Current Option Gain/Loss: -45.0%, and -34.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: RE spent the day consolidating sideways in a very narrow range. There is no change from my weekend comments. I remain very cautious on this trade. More conservative traders may want to exit early right now. I am not suggesting new bearish positions at this time.

Our plan was to keep our position size small to limit our risk. Our targets are $76.00 and $71.00.

- Small Bearish Positions -

Long the April $80 PUTs (RE1116P80) Entry @ $1.00

- or -

Long the May $80 PUTs (RE1121Q80) Entry @ $2.50

Entry on March 23rd at $81.43
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 381 thousand
Listed on March 22nd, 2011