Editor's Note:

A better than expected jobs report helped keep the bullish tone alive on Wall Street. The Dow Industrials briefly traded at new multi-year highs. The Dow Transports did breakout to new relative highs.

We did have BIDU and JLL hit some profit targets. Several plays below had their stop losses adjusted. Plus, WLP broke out past resistance and hit our trigger to buy calls.

Do not forget that April options will EXPIRE in just TWO WEEKS. A pull back in the market right now would crush the April options. Readers may want to seriously consider taking some money off the table now if you're holding April calls.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 72.41 change: -1.02

Stop Loss: 68.75
Target(s): 76.50, 79.75
Current Option Gain/Loss: -24.0% and - 3.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02 update: All in all it was a disappointing week for BHI. There was no follow through on Monday's gains. Shares failed at resistance near $75.00 five days in a row. The new 52-week high this morning at $75.10 quickly failed and shares are nearing short-term support at $72.00 and additional support near $70 and its 40 and 50-dma. Personally, I would use Friday's dip as a new entry point to buy calls but you could wait and see if BHI nears the $70.00 level, which would be a better entry point. Conservative traders could wait and buy a bounce instead of a dip. The simple 50-dma has risen to $68.90 so I am raising our stop loss to $68.75. Our first target is $76.50. Our second target is $79.75. More aggressive traders could aim higher.

- Suggested Positions -

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

- or -

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

04/02 New stop loss @ 68.75

chart:

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: 138.83 change: +1.02

Stop Loss: 127.50
Target(s): 139.00, 147.50
Current Option Gain/Loss: +195.3%, and + 99.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/02 update: Target achieved. Shares of BIDU rallied to $139.44 intraday. Our first target to take profits was hit at $139.00. The April $130 call traded over $10.00 intraday but was trading near $9.65(bid) when BIDU hit our target. The May $135 calls were trading near $10.25(bid) at our target.

I suspect the $140 level will be round-number resistance so we should expect some profit taking soon. Let's wait for the pull back before we consider new bullish positions. Please note our new stop loss at $127.50. I am not suggesting new positions at this time.

Now that BIDU has already hit our target at $139.00 we are aiming for $147.50. However, 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

04/02 New stop loss @ 127.50
04/01 1st Target Hit @ $139.00. Options @ +201% & +100.9%
03/26 New stop loss @ 124.00

chart:

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: 113.12 change: +1.77

Stop Loss: 104.75
Target(s): 109.00, 114.00
Current Option Gain/Loss: +147.0%, and +90.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02 update: Friday was a good day for shares of CAT. The stock added another +1.5% for another new high. The intraday high was $113.59, which wasn't enough to tag our final target at $114.00. Readers will want to seriously consider an early exit now anyway since CAT remains short-term overbought and due for some profit taking. The stock could easily see a retracement toward $110 or $107.50 pretty quickly. I am raising our stop loss to $104.75. 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

04/02/11 New stop loss @ 104.75, Consider an early exit now
03/26/11 New stop loss @ 103.75
03/25/11 1st Target Hit @ 109.00, Options @ +58.8%, +37.7%

chart:

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: 52.09 change: +0.13

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Option Gain/Loss: - 6.0% and -76.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02 update: If you look at the banking sector indices they are starting to improve. Yet at the same time, COF, which has been out performing its peers, remains stuck under resistance near $53.00. I am still concerned that a failure here will result in a bearish double top pattern. If the financial sector can rebound then it should lend some strength to COF. In the meantime I would not launch new positions here. Wait for a dip near the 50-dma or better yet buy a bounce from the 50-dma. 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

chart:

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: 79.39 change: +0.79

Stop Loss: 73.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: + 5.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02 update: The Dow Jones Transportation sector broke out to a new two-year high yet the railroads were little help on Friday. The DJUSRR railroad index only gained +0.2%. Shares of CSX were outperforming their peers with a +1% gain but the stock is once again nearing resistance at $80. I am not suggesting new bullish positions at this time. Our final target remains the $83.75 mark.

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: 103.84 change: +4.10

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: +41.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/02 update: Target achieved. JLL was showing relative strength on Friday with a +4.1% rally and a breakout to new highs. The stock hit our first profit target at $102.50. The option was trading near $3.50 at that time (+2.9%). The option's high for the day was $5.40. Our second and final target is $109.00 but we do not want to hold over the late april earnings report. Please note that I am raising our stop loss to $97.90. If you're looking for a new entry point look for dips in the $102.50-102.00 area.

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

04/02 New stop loss @ 97.90
04/01 1st Target hit @ 102.50, Option @ +2.9%
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

chart:

Entry on February 28th at $97.96
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 386 thousand
Listed on February 26th, 2010


Noble Corp. - NE - close: 45.29 change: -0.33

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: -17.9%, and -26.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: I am a little perplexed by the relative weakness in NE the last couple of days. The energy sector indices continue to march higher and crude oil futures are rallying to new two-year highs. Previously I suggested buying dips in the $45-44 zone. Readers may want to wait and watch for a bounce from this $45-44 area before initiating new positions. More conservative traders might want to wait for NE to trade past the March 22nd high of $46.72 before initiating positions.

Our targets are $49.75 and $53.50. I would expect the $50.00 level to offer some resistance and it could take NE a little while to break through it. We will plan to exit ahead of the April 20th (unconfirmed) earnings report.

- Suggested Positions -

Long the May $46.00 calls (NE1121E46) Entry @ $2.17

- or -

Long the May $48.00 calls (NE1121E48) Entry @ $1.37

chart:

Entry on March 31st at $46.25
Earnings Date 04/20/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on March 30th, 2011


Norfolk Southern - NSC - close: 69.32 change: +0.05

Stop Loss: 64.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: + 50.0%, and +32.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02 update: Friday was the third time this week that NSC produced a failed rally at resistance near the $70.00 level. The stock looks a little bit overbought here so I wouldn't buy calls now. Look for a dip into the $68-66 zone as an entry point. More aggressive traders could buy a breakout past $70.00. 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

chart:

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: 87.02 change: +0.00

Stop Loss: 81.75
Target(s): 84.95, 89.00
Current Option Gain/Loss: +45.0%
Time Frame: 4 to 7 weeks
New Positions: see below

Comments:
04/02 update: PII rallied to $88 intraday but closed unchanged on the session. This might be a hint that PII's current run is losing some steam. Readers might want to consider an early exit now to lock in a profit. There is no change from my prior comments. Our final exit target is $89.00. 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%)

chart:

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: 127.87 change: +0.87

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: +104.8%, and +40.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/02 update: PNRA came close but didn't quite make it to our target at $129.50 on Friday. Shares did hit new highs at $128.41. I am not suggesting new bullish positions at current levels. Wait for a dip near the $124 area before considering new positions. 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 over 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

chart:

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: 101.98 change: +0.38

Stop Loss: 97.40
Target(s): 104.75, 109.00
Current Option Gain/Loss: - 0.0%, and - 3.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/02 update: PX tagged another new historic high at $102.75 intraday but pared its gains by the close. I am still expecting a dip toward the $100 area and would prefer to launch new positions on a little pull back. 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

chart:

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: 85.12 change: +1.78

Stop Loss: 79.90
Target(s): 87.00, 94.00
Current Option Gain/Loss: -44.4%, and - 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/02 update: The rally in QSII is starting to accelerate. Shares outperformed the market with a +2.1% gain to close at new all-time highs. More conservative traders may want to take profits now. I am adjusting our first profit target from $87.25 to $87.00 and our secondary target from $94.50 to $94.00. Currently I would look for dips near the $83-82 zone as our next entry point. Please note our new stop loss at $79.90.

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

04/02 New stop loss @ 79.90, Adjusted targets to $87.00 and $94.00
03/24 New stop loss @ 78.60

chart:

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: 91.03 change: +2.36

Stop Loss: 85.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +36.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/02 update: Finally! SRCL is finally starting to produce the move I was expecting. Shares rallied past round-number resistance near $90.00. This is another new historic high. While the $95.00 level might be round-number resistance, shares of SRCL should be headed for the $100 area. Our targets are $93.50 and $98.50.

I would consider new positions on the breakout or you can look for a dip near $89.00 instead. Please note our new stop loss at $85.75. We will plan to exit ahead of the late April earnings report.

- Suggested Positions -

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

04/02 New stop loss @ 85.75

chart:

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: 66.73 change: +0.83

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: +250.7%, and +93.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: WFMI continues to creep higher. The stock just hit new four-year highs on Friday. WFMI is looking a little short-term overbought here and due for some profit taking. Readers will want to seriously consider an early exit now to lock in a gain. If we see WFMI produce any sort of blow off top or reversal pattern we'll likely exit early. I am raising our stop loss to $59.90 and we might want to move our stop closer to the $62 level instead. No new positions at this time.

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

04/02/11 new stop loss @ 59.90
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: 70.75 change: +0.96

Stop Loss: 65.75
Target(s): 72.25, 74.75
Current Option Gain/Loss: + 0.0%, and + 0.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/02 update: Our bullish trade on WLP has been opened. Shares opened at $70.04 this morning and quickly rallied through our trigger to buy calls at $70.25. Now that the play is open we'll adjust the stop loss to $66.75. More conservative traders might want to place their stop closer to the $68 level instead. I would still consider new positions now with Friday's bullish breakout over $70.00. We do not want to hold over the late April earnings report.

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

- Suggested Positions -

Long the April $70 call (WLP1116D70) Entry @ $1.55

- or -

Long the May $70 call (WLP1121E70) Entry @ $2.80

chart:

Entry on April 1st at $70.25
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on March 26th, 2011