Editor's Note:

Attention! I want to remind you that April options expire in five trading days. If you're holding April calls you will want to seriously consider an early exit now. Or you can risk waiting with the expectation the market might bounce after last week's consolidation.

The Q1 earnings season is about to begin. We do not want to hold over any earnings reports.

-James

Current Portfolio:


CALL Play Updates

Baker Hughes - BHI - close: 71.57 change: +0.35

Stop Loss: 68.75
Target(s): 76.50, 79.75
Current Option Gain/Loss: -79.0% and -21.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/09 update: BHI was upgraded on Friday morning. The news produced a gap higher but traders sold into strength. Shares faded back toward their lows for the week. While the long-term trend is up, BHI has developed a short-term bearish trend of lower highs. I have been suggesting readers buy a dip near $70.00 and technical support at the 50-dma but I am concerned with the wider market's weakness. Readers may want to wait for a new rise past $73.50 instead. 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

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: 141.88 change: +2.78

Stop Loss: 132.40
Target(s): 139.00, 147.50
Current Option Gain/Loss: +275.0%, and +134.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/09 update: BIDU produced a decent bounce on Friday with a +2% gain. Shares are close to their all-time highs set earlier in the week. I am growing more conservative given the state of the U.S. markets and we will exit our April $130 calls now. Meanwhile, we will raise our stop loss to $132.40. More conservative traders may want to up their stops closer to $135.00 or even consider selling your May calls now to lock in gains. 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 -

April $130 calls (BIDU1116D130) entry @ $3.20, Exit @ $12.00 (+275%)

- or -

Long the May $135 calls (BIDU1121E135) entry @ $5.10

04/09 New stop loss @ 132.40, Exit April Calls Now (+275%)
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

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: 109.82 change: -0.03

Stop Loss: 107.40
Target(s): 109.00, above $112 for Aprils, $114.90 for Mays
Current Option Gain/Loss: + 47.0%, and +20.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/09 update: CAT spiked to a new high last Monday and has been consolidating lower ever since. I am not suggesting new positions and readers will want to strongly consider an early exit now to lock in gains. If CAT sees another bounce over $112.00 we will exit the rest of our April calls early. Please note that I am raising our final target for the May calls to $114.90, from $114.00 (FYI: the high on Monday was $113.93).

- 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%

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


CH Robinson Worldwide Inc. - CHRW - close: 74.28 change: -0.49

Stop Loss: 71.90
Target(s): 79.50
Current Option Gain/Loss: -15.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: Prior resistance near $74.00 should be new support and thus Friday's dip near $74.00 (the low was $73.74) should be a new bullish entry point to buy calls. However, we may want to think twice about bullish positions on a transport stock with oil prices surging higher! If you're going to launch positions here I would keep your position size small to limit your risk. We are raising our stop loss to $72.75.

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.

- Suggested Positions -

Long the May $75.00 calls (CHRW1121E75) Entry @ $2.25

04/09 New stop loss @ 72.75

chart:

Entry on April 7th at $74.50
Earnings Date 04/26/11(confirmed)
Average Daily Volume = 1.2 million
Listed on April 2nd, 2011


CSX Corp. - CSX - close: 76.92 change: -0.99

Stop Loss: 74.45
Target(s): 79.90, 83.75
Current Option Gain/Loss: -90.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/09 update: Railroad stocks have been slowly correcting lower and look like they have finally found short-term support. If there is one group that is going to handle higher fuel prices better than the rest it should be the trains. CSX is nearing potential support in the $76-75 area. Aggressive traders could buy calls now while more conservative traders could wait for a dip closer to $75.00. If you do launch positions now I'd prefer the April $75s or April 77.50s instead of the $80s. 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%)

chart:

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: 63.20 change: -0.07

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:
04/09 update: FO has been going nowhere the last three days as the stock consolidates sideways. We are still waiting for a breakout through the top of its trading range.

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

chart:

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: 143.66 change: +1.15

Stop Loss: 137.00
Target(s): 149.50, 154.50
Current Option Gain/Loss: +18.4%, and +18.0%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/09 update: Commodities continue to rally higher thanks to renewed weakness in the U.S. dollar. Gold futures rallied to new all-time highs at $1,476 an ounce on Friday. This boosted the GLD gold ETF to $143.84 intraday. If you're looking for a new entry point I would widen the entry point range to dips in the $142.00-140.00 zone. 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

chart:

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


Goldman Sachs - GS - close: 160.96 change: -1.44

Stop Loss: 157.00
Target(s): 169.75
Current Option Gain/Loss: - 54.5%
Time Frame: about two weeks
New Positions: see below

Comments:
04/09 update: Warning! We may have to abandon ship pretty early on this GS trade. If Thursday's failed rally at the 100-dma wasn't bad enough the stock produced a bearish engulfing candlestick pattern on Friday and closed back under short-term resistance at $162.00. Conservative traders will want to exit early now. If we see GS close under $160.00 I will probably drop this play early. I am not suggesting new bullish positions at this time.

Our target is $169.75. Since we plan to exit before April 19th and April options expire after April 20th I am suggesting April options but these will be much more volatile than May or later options.

- Suggested Positions -

Long the April $165.00 call (GS1116D165) Entry @ $1.10

chart:

Entry on April 7th at $162.50
Earnings Date 04/19/11 (confirmed)
Average Daily Volume = 4.3 million
Listed on April 6th, 2011


Jones Lang Lasalle Inc. - JLL - close: 103.16 change: -1.16

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: + 8.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/09 update: Time is almost up. We have five days left before April options expire. It's time to start looking for an exit on this JLL trade. Right now I am tempted to exit early on any bounce back into the $104.50-105.00 area. Officially our exit target is $109.00 but we are almost out of time. No new positions at this time.

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: 45.60 change: +0.62

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: -18.8%, and -29.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: After underperforming most of the week the energy stocks finally showed some strength on Friday. Another big gain for oil didn't hurt but oil stocks had been ignoring strength in oil most of the week. NE produced a +1.3% gain and looks poised to breakout past resistance near the $46.50 area.

I would be tempted to buy a breakout past $46.50 but keep in mind that NE has earnings on April 20th and we do not want to hold over the announcement.

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.

- 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 (confirmed)
Average Daily Volume = 4.5 million
Listed on March 30th, 2011


Norfolk Southern - NSC - close: 67.69 change: -0.44

Stop Loss: 65.70
Target(s): 72.00, 74.90
Current Option Gain/Loss: - 90.0%, and -25.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/09 update: NSC has been consolidating lower all week after failing at $70.00 the week before. Shares did produce a nice intraday bounce from $67.00 on Friday. Aggressive traders may want to buy calls on this bounce. Or you could wait for a dip closer to the $66.00 level, which should be stronger support. I am raising our stop loss to $65.70. 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


Panera Bread Co. - PNRA - close: 120.17 change: -2.05

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: - 82.9%, and -47.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/09 update: PNRA has seen a dramatic correction lower from $129 to $120 in three days. The close under $125 and what should have been support near the $122.50 area is bearish. Shares did manage to close above $120 so nimble traders could buy a bounce from current levels. Readers may want to up their stop toward Friday's low of $119.39.

Our second and final target is $134.50. We do not want to hold over the April 26th earnings report.

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 04/26/11 (confirmed)
Average Daily Volume = 363 thousand
Listed on March 26th, 2011


Praxair Inc. - PX - close: 102.29 change: -0.23

Stop Loss: 97.90
Target(s): 104.75, 109.00
Current Option Gain/Loss: + 5.1%, and + 3.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/09 update: PX is holding up reasonably well. Shares spent most of last week consolidating sideways in the $102-104 zone. I would still expect a dip near the $100 level. Wait for a dip near $100 before considering new bullish positions. Please note our new stop loss at $97.90.

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

04/09 new stop loss @ 97.90

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: 83.10 change: -1.91

Stop Loss: 82.95
Target(s): 87.00, Aprils-89.50, Junes-94.00
Current Option Gain/Loss: - 70.3%, and + 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/09 update: It was a rough week for QSII. Shares did hit new highs early on but the last three days has seen some dramatic profit taking. On the weekly chart the action definitely looks like a bearish reversal. The selling stalled on Friday near short-term support near $83.00. If the stock market sees any weakness on Monday I would expect QSII hit our stop loss at $82.95. I am not suggesting new positions at this time. More conservative traders will want to seriously consider an early exit now. 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

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: 96.35 change: -1.02

Stop Loss: 87.40
Target(s): 99.00, 107.50
Current Option Gain/Loss: +17.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: The rally in SOHU has stalled in the $98-99 zone for the third time this week. The high on Friday was $98.72. With our first target at $99.00, readers may want to consider an early exit right now. I am not suggesting new positions at these levels.

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: 89.70 change: -0.80

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +10.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/09 update: SRCL's late day bounce near $89.00 on Friday looks like a new bullish entry point. However, given the market's precarious position we may want to wait for a dip closer to $88.00 before initiating positions on SRCL. Readers might want to adjust their stop losses closer to the $88.00 level. 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

chart:

Entry on March 30th at $88.93
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 479 thousand
Listed on March 29th, 2011


Whole Foods Market Inc. - WFMI - close: 62.90 change: -1.44

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: - 66.1%, and + 1.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: WFMI has spent the entire last week correcting lower. Shares are nearing what could be potential support near $62.00. I would wait for a bounce near $62 before considering new bullish positions. Readers might want to raise their stop loss closer to the $62 area. 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

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: 68.95 change: -0.12

Stop Loss: 67.45
Target(s): 72.25, 74.75
Current Option Gain/Loss: -77.4%, and -38.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/09 update: WLP has spent the last three days chopping sideways in the $68.50-70.00 zone. Personally, I would prefer to see a rally past the $70.00 mark before considering new bullish positions. Please note our new stop loss at $67.45. 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

04/09 New stop loss @ 67.45
04/02 new stop loss @ 66.75

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


CLOSED BULLISH PLAYS

Capital One Financial - COF - close: 51.65 change: -0.30

Stop Loss: 50.85
Target(s): 54.75, 59.00
Current Option Gain/Loss: -29.6% and -96.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/09 update: I am giving up on our COF call play. The mid March lows in the banking sector might be a bottom for the sector but COF is just not moving for us. The stock appears to slowly be forming a bearish double top pattern. I am suggesting an early exit now.

NOTE: Realistically the April $55s have already vanished so I would go ahead and hold them since the damage is done. Personally, I would plan to sell on any bounce that boosted the option above $0.35 or higher.

- Suggested Positions -

April $50 call (COF1116D50) Entry @ $2.63, Exit @ 1.85 (-29.6%)

- or -

April $55 call (COF1116D55) Entry @ $0.65, Exit @ 0.02 (-96.9%)

04/09 Early Exit. Options @ -29.6% and -96.9%
04/05 New stop loss @ 50.85
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