Editor's Note:

The major indices managed a minor gain on Wednesday but recent winners are stumbling. A lot of the high flyers and outperformers in the last few days are suddenly seeing profit taking. BIDU, CAT, NE, PNRA, QSII, SOHU and WFMI were all underperformers today.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 71.22 change: -1.78

Stop Loss: 68.75
Target(s): 76.50, 79.75
Current Option Gain/Loss: -73.0% and -26.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/06 update: Oil prices rallied to new two-year highs and yet oil stocks were big underperformers today. The OIX oil index lost -0.6% and the OSX oil services index fell -1.9%. BHI underperformed both with a -2.4% drop. The close under short-term support near $72.00 is bearish but I have been warning readers that shares might retest support near $70.00 and its 50-dma. We can buy a dip near $70.00 or better yet wait and buy a bounce from $70.00. 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: 137.25 change: -4.40

Stop Loss: 129.75
Target(s): 139.00, 147.50
Current Option Gain/Loss: +151.1%, and + 83.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/06 update: Both Chinese markets were up again this week but that didn't help shares of BIDU. The stock suffered some profit taking with a -3.1% decline. I have been warning readers to expect a pull back. The next level of possible support looks like the $135 area. I am not suggesting new positions at this time. 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: 111.00 change: -1.31

Stop Loss: 107.40
Target(s): 109.00, 114.00
Current Option Gain/Loss: + 83.8%, and +46.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/06 update: We have been expecting CAT to see some profit taking and shares gave up -1.1% today. The stock is testing its 10-dma and could easily hit $110 tomorrow. 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: 75.62 change: +0.19

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:
04/06 update: CHRW is still showing pretty good strength considering the rally in oil prices. Once again the shares tried to breakout past the $76 level but failed. I am suggesting readers open bullish positions on a dip at $74.50. More conservative traders may want to wait for a dip closer to $74.00 instead.

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: 52.15 change: +0.48

Stop Loss: 50.85
Target(s): 54.75, 59.00
Current Option Gain/Loss: -10.6% and -89.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/06 update: COF lives to see another day. I was ready to drop this stock as a play but the financial sector started showing some relative strength on Wednesday. COF's +0.9% gain still lagged the banking indices but I'm willing to wait and see what happens tomorrow. I would hesitate on opening new positions.

- 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: 77.90 change: +0.25

Stop Loss: 74.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: -66.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/06 update: CSX managed a minor bounce near its 20-dma. I'm not convinced the pull back is over. I would still wait for a dip near the $76-75 zone. Our final target remains the $83.75 mark.

CSX is due to report earnings on April 19th and we plan to exit ahead of that report to avoid holding over the announcement.

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 04/19/11 (confirmed)
Average Daily Volume = 3.4 million
Listed on March 19th, 2010


Fortune Brands - FO - close: 63.19 change: -0.24

Stop Loss: 61.75
Target(s): 67.50, 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
04/06 update: The rally in FO paused near resistance at the top of its trading range. We are waiting for a breakout.

Aggressive traders may want to buy a move over $63.50. I am suggesting a trigger to buy calls at $64.00. If triggered our targets are $67.50 and $69.75. I would aim higher but we do want to exit ahead of the late April earnings report.

FYI: A move past $64.00 would create a brand new quadruple top breakout buy signal.

Trigger @ $64.00

- Suggested Positions -

Buy the May $65.00 call (FO1121E65) current ask $1.25

Entry on April xxth at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 973 thousand
Listed on April 5th, 2011


SPDR Gold ETF - GLD - close: 142.38 change: +0.33

Stop Loss: 137.00
Target(s): 149.50, 154.50
Current Option Gain/Loss: - 0.0%, and + 0.0%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/06 update: Weakness in the U.S. dollar helped push gold to another new all-time high. The GLD opened higher at $142.40 (our entry point) but did not make much progress. I would still consider new positions here or you can wait for a dip back toward the $141.00-140.00 zone as your entry point. Our targets are $149.50 and $154.50 within the next six to twelve weeks.

FYI: The Point & Figure chart for GLD is bullish with a $172 target.

- Suggested Positions -

Long the May $145 call (GLD1121E145) Entry @ $1.84

- or -

Long the June $150 call (GLD1118F150) Entry @ $1.33

Entry on April 6th at $142.40
Earnings Date --/--/--
Average Daily Volume = 12.5 million
Listed on April 5th, 2011


Jones Lang Lasalle Inc. - JLL - close: 104.58 change: -0.12

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: +76.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/06 update: JLL continues to drift sideways. 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: 45.00 change: -1.05

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: -29.0%, and -38.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/06 update: Ouch! NE was a big underperformer today with a -2.2% drop. Oil and energy stocks as a group were laggards in spite of a new two-year high in oil prices. Today's action in NE is a bearish engulfing candlestick (reversal) pattern but these patterns normally need to see follow through. It's still a warning and readers may want to adjust their stop loss. I am not suggesting new positions at this time.

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: 68.64 change: -0.11

Stop Loss: 64.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: - 30.0%, and + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/06 update: NSC dipped toward short-term support near $68.00 and bounced. This may prove to be a new entry point but I'm not convinced the pull back in railroad stocks is over yet. Personally I would be tempted to buy calls here but NSC may dip further into the $68-66 range. 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: 123.90 change: -4.79

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: - 14.6%, and - 7.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/06 update: Wow! That was right on cue. I warned readers to expect some profit taking in PNRA. The stock just erased five days worth of gains with a drop toward prior resistance and support in the $122-123 area. If PNRA can hold this support then this could be a new entry point to buy calls but I would give it a couple of days to see if PNRA can hold this level.

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: 103.13 change: +0.11

Stop Loss: 97.40
Target(s): 104.75, 109.00
Current Option Gain/Loss: +20.5%, and +28.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/06 update: PX managed to eke out another gain after traders bought the dip near $102 this morning. The trend is up but I would prefer to buy a dip closer to the $100 level. 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: 86.39 change: -1.76

Stop Loss: 82.95
Target(s): 87.00, Aprils-89.50, Junes-94.00
Current Option Gain/Loss: + 59.2%, and +50.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/06 update: Warning! The action in QSII today is a bearish engulfing candlestick, which is normally interpreted as a bearish reversal pattern. If shares see any follow through lower we can look for a drop toward the $84-83 area. I strongly suggest that readers exit their April call positions now. I am not suggesting new bullish positions at this time. Our second and final target for the April calls is $89.50. 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: 94.48 change: -2.01

Stop Loss: 87.40
Target(s): 99.00, 107.50
Current Option Gain/Loss: + 3.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/06 update: The high-flying Chinese Internet stocks hit some profit taking today. SOHU gave up -2% but did manage a bounce from short-term support near $92.00. I am not suggesting new positions at this time but readers can watch for a bounce from the $90.00 level as a new entry point.

Our first exit target is $99.00. Keep in mind that the $100.00 level is normally round-number, psychological resistance.

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: 92.28 change: -0.28

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +64.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/06 update: SRCL briefly traded above the $93.00 level before pulling back. If the stock does see profit taking I would look for support near $90 or the $89-88 levels. We can re-evaluate a new entry point on a dip there. 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: 63.76 change: -1.92

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: + 24.6%, and +19.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/06 update: As we expected, shares of WFMI are starting to see some profit taking. The next stop is probably the $62.00 level. More conservative traders may want to exit their April call positions early. 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: 68.85 change: -0.63

Stop Loss: 66.75
Target(s): 72.25, 74.75
Current Option Gain/Loss: -70.9%, and -38.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/06 update: I have been warning readers that WLP might dip toward the $68.00 level. Shares are getting closer. I am somewhat concerned that this recent pull back makes the breakout over $70.00 look like a potential bull-trap pattern. Readers may want to wait and buy a bounce from $68.00 instead of buying a dip at $68.00. 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

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