Editor's Note:

One of our bullish candidates, WFMI, just hit a profit target for us. Overall stocks continue to creep higher but the action in the railroad names was disappointing today.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 73.90 change: -0.26

Stop Loss: 67.95
Target(s): 76.50, 79.75
Current Option Gain/Loss: +46.0% and +26.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/30 update: BHI underperformed the broader market. Shares are still consolidating sideways under resistance at the $75.00 level. Big picture, BHI still looks bullish and I would still consider new positions on dips in the $73.00-72.50 zone (like the dip BHI saw this morning). 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: 136.38 change: +0.38

Stop Loss: 124.00
Target(s): 139.00, 147.50
Current Option Gain/Loss: + 98.4%, and + 78.4%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/30 update: BIDU saw a gap higher this morning and shares briefly traded at $138.53 before shares hit some profit taking. BIDU still managed a gain but the action might suggest BIDU is losing momentum. More conservative traders may want to start taking profits now! I am not suggesting new positions at this time.

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: 111.53 change: +0.99

Stop Loss: 103.75
Target(s): 109.00, 114.00
Current Option Gain/Loss: +89.7%, and +63.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/30 update: Shares of CAT also saw a gap higher at the open. The stock opened at $111.71 but failed to make it past the $112.00 mark. The stock closed at another new high. We might want to consider an early exit tomorrow (quarter end) or Friday, because CAT looks so short-term overbought.

There is no change 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: 52.11 change: +0.10

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Option Gain/Loss: - 1.9% and -64.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/30 update: Financials still lag the rest of the market but they were positive today. Meanwhile COF rallied up toward resistance near $53.00 and stalled. I am not suggesting new bullish positions at current levels. Wait for another bounce from the $50 zone. 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: 77.57 change: -2.44

Stop Loss: 73.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: -37.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/30 update: Ouch! What in the world happened to the railroad stocks? The DJUSRR railroad index fell -1.4% and CSX tagged a new high at $80.42 and then plunged to a -3.0% drop. I didn't see any specific news regarding this drop in CSX. To be honest I am wondering if Obama said something negative about coal in his recent comments about U.S. energy policy (the railroads do a LOT of business transporting coal). I have been suggesting that CSX was short-term overbought and due for a pull back. Look for support near $76 or $75 as a new entry point to buy calls. 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%)

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: 98.89 change: -1.11

Stop Loss: 95.40
Target(s): 102.50, 109.00
Current Option Gain/Loss: -39.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/30 update: Hmm... JLL has underperformed the market two days in a row. That's usually not a good sign. The stock should have some support near $98 and at its 40-dma (near 98.50) and the 50-dma (near 96.65). I am inching up our stop loss to $96.40. Wait for a bounce before considering new 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

03/30 new stop loss @ 96.40
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: 68.99 change: -0.57

Stop Loss: 64.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: + 50.0%, and +25.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/30 update: NSC gapped open higher near $70.00 and then slowly succumbed to profit taking. The whole railroad sector struggled today. While I haven't heard anything yet I wonder if President Obama said something negative about coal. A drop in coal use would be bad for business at the railroad companies.

Previously I suggested readers wait for a dip into the $68-66 zone before considering new bullish 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: 87.12 change: +1.22

Stop Loss: 81.75
Target(s): 84.95, 89.00
Current Option Gain/Loss: +55.0%
Time Frame: 4 to 7 weeks
New Positions: see below

Comments:
03/30 update: PII continues to climb. Shares added +1.4% to hit another all-time high. Our final exit target is $89.00. Please note our new stop loss at $81.75. I am not suggesting new positions at current levels.

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

03/30/11 New stop loss @ 81.75
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: 126.77 change: +3.30

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: +85.3%, and +31.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/30 update: The rally continues for PNRA. Shares started off strong today and closed near their highs with a +2.6% gain. If you're looking for a new entry point I probably wouldn't chase it. Look for a dip or a bounce near the $123.50 area. 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.

- Suggested Positions -

Long the April $125 call (PNRA1116D125) Entry @ $2.05

- or -

Long the May $130 call (PNRA1121E130) Entry @ $3.35

Entry on March 29th at $123.55
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 363 thousand
Listed on March 26th, 2011


Praxair Inc. - PX - close: 101.02 change: +0.10

Stop Loss: 97.40
Target(s): 104.75, 109.00
Current Option Gain/Loss: -10.5%, and -17.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/30 update: Well it wasn't the best entry point for us but PX still looks bullish. Shares gapped open higher at $101.54, rallied to $102 and then dipped back toward round-number support at $100 only to bounce again. While the size of the gains today were a little disappointing the overall trend for PX is still higher. I would still consider call positions here at current levels. Our first target to take profits is at $104.75. Our second and final target is $109.00. We will plan to exit ahead of the late April earnings report.

Open bullish positions now, above $100

- Suggested Positions -

Long the May $100 call (PX1121E100) entry @ $3.90

- or -

Long the May $105 call (PX1121E105) entry @ $1.40

Entry on March 30th at $101.54
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on March 29th, 2011


Quality Systems Inc. - QSII - close: 83.13 change: +0.03

Stop Loss: 78.60
Target(s): 87.25, 94.50
Current Option Gain/Loss: -44.4%, and - 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/30 update: QSII hit another new high but the action today was pretty mellow. Shares underperformed with a mild three-cent gain. There is no change from my prior comments. I am tempted to move our first profit target down from $87.25 toward the $85 area.

Momentum traders could buy this breakout. I would prefer to buy a dip near $81.00.

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


Stericycle Inc. - SRCL - close: 88.18 change: -0.12

Stop Loss: 84.90
Target(s): 93.50, 98.50
Current Option Gain/Loss: -14.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/30 update: After the gap higher at the open SRCL spent the whole day trading sideways inside the $89-88 zone. Given the market's strength the action in SRCL is a little disappointing but overall nothing has changed. Shares still look poised to move higher.

More conservative traders might want to consider a tighter stop loss. Our targets are the $93.50 and $98.50 levels but we will plan to exit ahead of the late April earnings report.

- Suggested Positions -

Long the May $90 calls (SRCL1121E90) Entry @ $2.50

Entry on March 30th at $88.93
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 479 thousand
Listed on March 29th, 2011


Whole Foods Market Inc. - WFMI - close: 65.93 change: +1.58

Stop Loss: 58.49
Target(s): 64.75, 69.00
Current Option Gain/Loss: +186.1%, and +73.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/30 update: Target achieved. The rally in WFMI continues. Shares surged +2.4% to close at new multi-year highs. Our first profit target to exit was hit at $64.75 early this morning. Our final target is $69.00 but I would not open positions at current levels. Wait for a pull back. More conservative traders may want to bump up their stop loss.

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

03/30/11 1st Target Hit @ 64.75, April $65 call @ 1.25 (+92.3%)
May $65 call @ 3.50 (+55.5%)
03/29/11 new stop loss @ 59.49
03/26/11 New stop loss @ 58.49

chart:

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: 69.65 change: +0.30

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:
03/30 update: WLP is still drifting higher and shares are inching closer to resistance at the $70.00 mark. We currently have two triggers to buy calls. One is a buy the dip trigger at $68.25. The second is a breakout trigger at $70.25. If triggered on the dip, we'll use a stop at $65.75. If triggered on the breakout we'll move the stop to $66.75. We do not want to hold over the late April earnings report.

FYI: Readers may want to keep their position size small.

Trigger @ 68.25 or $70.25

- 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: 83.00 change: +0.39

Stop Loss: 84.25
Target(s): 76.00, 71.00
Current Option Gain/Loss: -65.0%, and -48.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/30 update: Considering we still don't know what RE's losses will be on the Japanese earthquake disaster the stock is holding up relatively well. Actually it's holding up too well. Shares inched higher but on strong volume today and RE looks poised to breakout past technical resistance at its exponential 200-dma. More conservative traders may want to exit early. I am not suggesting new 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