Editor's Note:

Polaris Industries continues to rally and shares hit our exit target under the $90 level today.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 73.00 change: +0.38

Stop Loss: 68.75
Target(s): 76.50, 79.75
Current Option Gain/Loss: -31.0% and + 1.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/05 update: BHI delivered another bounce from short-term support near $72.00. There is no change from my prior comments. I would still consider new positions now but there is a growing chance BHI will dip toward $70.00, which would be a much more attractive entry point. Just remember that April options expire soon. 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: 141.65 change: -1.46

Stop Loss: 129.75
Target(s): 139.00, 147.50
Current Option Gain/Loss: +270.3%, and +133.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/05 update: BIDU saw a little bit of profit taking today after yesterday's surge to new highs. Traders did buy the dip near $140 this morning. I am concerned that BIDU looks short-term overbought and due for a larger pull back. I would not open new positions here. Our final target is the $147.50 level.

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: 112.31 change: -1.07

Stop Loss: 107.40
Target(s): 109.00, 114.00
Current Option Gain/Loss: +119.1%, and +69.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/05 update: After a three-week rally shares of CAT are starting to see a little bit of some overdue profit taking. More conservative traders will want to seriously consider an early exit now to lock in gains. I am not suggesting new positions at this time. Our final target to exit is $114.00.

- 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: 75.43 change: -0.21

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:
04/05 update: CHRW tagged a new six-week high but shares struggled near the $76.00 level. I am suggesting readers open bullish positions 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: 51.67 change: -0.15

Stop Loss: 50.85
Target(s): 54.75, 59.00
Current Option Gain/Loss: -23.1% and -90.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/05 update: I remain very cautious on our COF play. If the stock doesn't show improvement tomorrow we will drop it. In the mean time I am raising our stop loss to $50.85. No new positions at this time.

- Suggested Positions -

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

- or -

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

04/05 New stop loss @ 50.85
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: 77.65 change: -1.26

Stop Loss: 74.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: -66.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/05 update: Railroad stocks were underperformers on Tuesday. CSX lost -1.5%. Shares look headed toward short-term support near the $76-75 zone. Look for a bounce in the $75.50 area as a new bullish entry point. Please note our new stop loss at $74.45. 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

04/05 New stop loss @ 74.45
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: 104.70 change: +0.55

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: +52.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/05 update: On an intraday basis JLL spiked past the $105.00 level to hit new three-year highs. There is no change from my prior 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: 46.05 change: -0.05

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: - 4.6%, and -13.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05 update: Oil prices did hit new two-year highs but gains were minor. The momentum in oil might be slowing down. Meanwhile shares of NE are churning sideways under resistance near the $46.50 area. I want to repeat my earlier comments that readers may want to wait for NE to rally 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: 68.75 change: -0.83

Stop Loss: 64.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: - 20.0%, and + 3.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/05 update: NSC is another railroad stock that was underperforming the rest of the market. Shares have been struggling with resistance near 470.00. We have been expecting a dip toward the $68-66 zone. Wait for the dip or a bounce from the $68-66 area before considering 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


Panera Bread Co. - PNRA - close: 128.69 change: +0.02

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:
04/05 update: Shares of PNRA held up reasonably well today but I'm expecting a little pull back soon. Shares look a tiny big overbought and poised for some profit taking, especially with the $130 level looming overhead as round-number resistance. Look for a dip toward $125. Readers may want to seriously consider exiting their April positions completely at this point. I am not suggesting 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%)

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: 103.02 change: +0.63

Stop Loss: 97.40
Target(s): 104.75, 109.00
Current Option Gain/Loss: +17.9%, and +25.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/05 update: PX produced an intraday rally toward the $104 level before paring its gains. The trend is still up but I keep expecting a dip back toward the $100 level. I 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: 88.15 change: +1.58

Stop Loss: 82.95
Target(s): 87.00, Aprils-89.50, Junes-94.00
Current Option Gain/Loss: +151.8%, and +82.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/05 update: QSII is still showing relative strength. the stock set a new all-time high at $88.39 this afternoon. I would expect the $90.00 level to offer some resistance. Therefore I am setting an exit target for our April options at $89.50. We'll keep our June option position open but sell the rest of our Aprils at $89.50. Please note our new stop loss at $82.95. I am not suggesting new bullish positions at this time. I wouldn't be surprised to see QSII rally toward $90 and then see a multi-day consolidation lower. Our second and final target for our June call 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

04/05 New stop loss @ 82.95
04/05 New exit target for our April options at $89.50
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

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: 96.49 change: -0.81

Stop Loss: 87.40
Target(s): 99.00, 107.50
Current Option Gain/Loss: +22.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05 update: SOHU hit a new 52-week high at $98.30 this morning but eventually settled lower. A little profit taking after yesterday's gains is normal. I am not suggesting new positions at this levels. Our first exit target is $99.00. Keep in mind that the $100.00 level is normally round-number, psychological resistance. SOHU could tag the $100 mark and then pull back.

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

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: 92.56 change: +0.34

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +72.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/05 update: Traders bought the early morning dip in SRCL and the stock closed at a new all-time high. Yesterday I suggested buying a dip in the $91-90 zone and SRCL hit $90.90 this morning. 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: 65.68 change: -0.42

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: +127.6%, and +64.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05 update: WFMI slipped toward $65.00 this morning and managed an intraday bounce but still closed with a minor loss on the session. I have been warning readers that WFMI looked overbought and due for a pull back. If shares are correcting it probably isn't over yet. More conservative traders may want to lock in gains now, especially if you're holding April calls. 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: 69.48 change: -1.13

Stop Loss: 66.75
Target(s): 72.25, 74.75
Current Option Gain/Loss: -53.5%, and -29.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/05 update: healthcare stocks were underperformers on Tuesday. WLP broke down under short-term support near $70.00. I am looking for a dip toward $68.00. Readers can use a dip or bounce near $68.00 as a new bullish entry point. 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


CLOSED BULLISH PLAYS

Polaris Industries, Inc. - PII - close: 88.86 change: +0.86

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:
04/05 update: Target achieved. The rally in PII continues and shares hit $89.53 intraday. Our final target to exit was hit at $89.00. The bid on the April $85 calls was near $4.15 at the time.

Our plan was to keep our position size small.

- Small Positions -

April $85 calls (PII1116D85) Entry @ 2.00, Exit @ $4.15 (+107.5%)

04/05/11 Final target hit @ 89.00. Option @ +107.5%
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