Editor's Note:

Chinese stocks were showing relative strength on Monday. Meanwhile we had two bullish candidates hit our profit targets. SOHU has hit our trigger to open positions.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 72.62 change: +0.21

Stop Loss: 68.75
Target(s): 76.50, 79.75
Current Option Gain/Loss: -30.0% and - 2.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/04 update: The stock market traded sideways on Monday with a lack of catalysts to get things moving. BHI hover near the $72.50 level most of the session. There is no change from my prior comments. I would still consider new positions now or you could wait for a potential dip toward the $70.00 level. 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

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: 143.11 change: +4.28

Stop Loss: 129.75
Target(s): 139.00, 147.50
Current Option Gain/Loss: +318.7%, and +156.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/04 update: The Chinese stock markets delivered strong gains on Monday and that helped push BIDU to a +3% gain and another new high. The breakout past the $140 level is bullish. I am raising our stop loss to $129.75. More conservative traders may want to raise their stop even higher. Our final target is the $147.50 level. I would not open new positions here. BIDU remains overbought.

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

04/04 New stop loss @ 129.75
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

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: 113.38 change: +0.26

Stop Loss: 107.40
Target(s): 109.00, 114.00
Current Option Gain/Loss: +151.4%, and +92.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/04 update: CAT almost hit our final target today. Shares rallied to $113.93 this morning. Our final exit is $114.00. However, more aggressive traders may want to aim higher. While CAT is short-term overbought and due for a pull back shares are not showing any sign of weakness. You could aim for $115, $117.50 or the $120 level but if you do I strongly suggest a tighter stop loss. The newsletter will plan on exiting at $114.00, which could happen tomorrow. More conservative traders will want to seriously consider an early exit now to lock in gains. Please note our new stop loss at $107.40. 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

04/04/11 New stop loss @ 107.40.
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%

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


CH Robinson Worldwide Inc. - CHRW - close: 75.64 change: +0.74

Stop Loss: 71.90
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
04/04 update: Transportation stocks continued to inch higher. CHRW actually outperformed the sector index with a +0.9% gain. Aggressive traders may want to open positions now. I'd rather not chase it. The plan is to buy calls on a dip at $74.50.

We do not want to hold over the late April earnings report. FYI: The Point & Figure chart for CHRW is bullish with a $91 target.

Trigger @ $74.50

- Suggested Positions -

Buy the May $75.00 calls (CHRW1121E75) current ask $2.40

Entry on April xxth at $ xx.xx
Earnings Date 04/26/11(confirmed)
Average Daily Volume = 1.2 million
Listed on April 2nd, 2011


Capital One Financial - COF - close: 51.82 change: -0.27

Stop Loss: 49.49
Target(s): 54.75, 59.00
Current Option Gain/Loss: -16.7% and -84.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/04 update: I am growing more concerned with our COF trade and I've decided to put a time limit on it. If we don't see COF show some improvement by the closing bell on Wednesday we will drop it from the newsletter. I am not suggesting new positions at this time. More conservative traders may want to up their stop loss closer to the $51.00 level. 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: 78.91 change: -0.48

Stop Loss: 73.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: -24.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/04 update: Shares of CSX were downgraded to a "hold" this morning. The stock gapped down on the news but did not see much follow through and spent the day moving sideways. I'm not giving up on CSX but I'm not suggesting new 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%)

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: 104.15 change: +0.31

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: +44.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/04 update: The fact that JLL did not see any profit taking after Friday's big gains is encouraging. I don't see any changes from my weekend comments. Our second and final target is $109.00 but we do not want to hold over the late April earnings report. 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

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: 46.10 change: +0.81

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: - 1.3%, and - 8.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: Crude oil futures posted another day of gains but trading in the energy sector was mixed. NE displayed some strength this morning but couldn't get past its recent highs. Shares ended the day up +1.7%. 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

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: 69.58 change: +0.26

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:
04/04 update: NSC continues to churn under resistance at the $70.00 level. There is no change from my weekend comments. 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

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: 88.00 change: +0.98

Stop Loss: 81.75
Target(s): 84.95, 89.00
Current Option Gain/Loss: +75.0%
Time Frame: 4 to 7 weeks
New Positions: see below

Comments:
04/04 update: PII displayed some strength today with a +1.1% gain. The stock is inching closer to our final target at $89.00. I am not suggesting new bullish positions at this time. More conservative traders might want to consider a tighter stop loss (maybe near $84.00).

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: 128.67 change: +0.80

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: +129.2%, and +55.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/04 update: Target achieved. PNRA continues to rally and shares hit $129.99 intraday. Our first target to take profits was hit at $129.50. The options were trading with a bid near $$4.82 for the April $125s and with a bid of $5.25 for the May $130s. The $130.00 level could be round-number, psychological resistance. I would expect PNRA to see a pull back here, maybe to the $125 area. No new positions at this time. Our second and final target is $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

04/04 1st Target Hit @ 129.50. The April option was at $4.82 (+135.1%) and the May option was at $5.25 (+56.7%)

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: 102.39 change: +0.41

Stop Loss: 97.40
Target(s): 104.75, 109.00
Current Option Gain/Loss: + 5.1%, and - 0.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/04 update: PX spent Monday consolidating sideways on either side of $102.00. 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

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: 86.57 change: +1.45

Stop Loss: 79.90
Target(s): 87.00, 94.00
Current Option Gain/Loss: +74.0%, and +52.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/04 update: Target achieved. The rally in QSII continues and shares hit $87.75 intraday. Our first target to take profits was hit at $87.00. The options were trading with a bid near $2.45 (+81.4%) for the April $85 calls and near $5.30 (+55.8%) for the June $85 calls. The stock does look a little bit overbought here so I wouldn't be surprised to see a dip back toward the $85-84 zone. More conservative traders may want to up their stops toward the $82-83 area. I am not suggesting new positions at current levels. Our second and final target is $94.00.

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

04/04 1st Target Hit @ 87.00. Options @ +81.4% and +55.8%
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


Sohu.com - SOHU - close: 97.30 change: +6.42

Stop Loss: 87.40
Target(s): 99.00, 107.50
Current Option Gain/Loss: +41.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: Good news! Not only did we not have to wait very long for SOHU to hit our trigger but the stock has soared to new all-time highs. Widespread gains back home in the Chinese stock markets helped power the Chinese stocks here in the U.S. SOHU gapped open higher at $91.75 and quickly hit our trigger to buy calls at $92.50. Now that the trade is open our first target to take profits is at $99.00. Bear in mind that the $100.00 level is normally round-number, psychological resistance. SOHU could tag the $100 mark and then pull back. I am not suggesting new bullish positions at these levels. We'll have to wait for a dip if you missed the entry point this morning.

We will plan to exit before the earnings report in late April. I want to reiterate that this is an aggressive, higher-risk trade. I'm suggesting we keep our position size small to limit our risk. FYI: The Point & Figure chart for SOHU is bullish with a $120 target.

Triggered

- Suggested Positions -

Long the May $100 call (SOHU1121E100) Entry @ $4.25

Chart:

Entry on April 4th at $92.50
Earnings Date 04/25/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on April 2nd, 2011


Stericycle Inc. - SRCL - close: 92.22 change: +1.19

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +60.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/04 update: SRCL continues to show strength and hit new highs at $92.29. If you're looking for a new entry point I'd wait for a dip into the $91-90 zone. Please note that I'm upping our stop loss to $86.75. Our targets are $93.50 and $98.50.

We will plan to exit ahead of the late April earnings report.

- Suggested Positions -

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

04/04 New stop loss @ 86.75
04/02 New stop loss @ 85.75

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: 66.10 change: -0.63

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: +175.3%, and +75.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: WFMI suffered a little bit of profit taking on Monday. That's not surprising and shares remain short-term overbought and due for more of a pull back. More conservative traders may want to lock in gains now. I am not suggesting new positions at this time. Our final target is the $69.00 level. 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

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: 70.61 change: -0.14

Stop Loss: 66.75
Target(s): 72.25, 74.75
Current Option Gain/Loss: -10.3%, and - 5.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/04 update: There is no change from my weekend comments on WLP. I would still consider new positions now or you can wait for a dip closer to $70.00, which should be new support. 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

04/02 new stop loss @ 66.75

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