Editor's Note:

The unofficial start to earnings season has not inspired any confidence. Stocks were down almost across the board. Airlines, healthcare and railroads were the few industries posting any gains today. We saw CAT, CSX, and NE get stopped out. I am also suggesting an early exit in our JLL play since we have April options.

-James

Current Portfolio:


CALL Play Updates

CH Robinson Worldwide Inc. - CHRW - close: 74.24 change: +0.33

Stop Loss: 72.75
Target(s): 79.50
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: Transport names were trying to bounce on oil's weakness but the sector didn't get very far. CHRW eked out a +0.4% gain. Technically this bounce looks like a new bullish entry point but if the market's major indices accelerate lower I would not expect transports to be immune to the profit taking. I would keep your position size small to limit your risk.

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

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


Fortune Brands - FO - close: 63.00 change: -0.61

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:
04/12 update: FO shed -0.9% but is still clinging to the $93 level. We're still waiting for a breakout higher. 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: 141.61 change: -1.03

Stop Loss: 137.00
Target(s): 149.50, 154.50
Current Option Gain/Loss: -28.8%, and -24.0%
2nd Option Position Gain/loss: - 0.0% and - 0.0%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/12 update: The dollar produced a decline but that failed to help commodities today. Gold ticked lower and the GLD gave up -0.7%. I am suggesting readers use this pull back today as a new bullish entry point to buy calls on the GLD. I'm listing a second position below. More conservative traders can tighten their stops closer to $139 or $140. The newsletter's stop is at $137.00. 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

- Second Entry Point, April 12th, Entry April 13th -

Buy the May $145 call (GLD1121E145) Current ask $1.36

- or -

Buy the June $150 call (GLD1118F150) Current ask $1.05

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


Goldman Sachs - GS - close: 160.42 change: -1.05

Stop Loss: 157.00
Target(s): 169.75
Current Option Gain/Loss: - 69.0%
Time Frame: about two weeks
New Positions: see below

Comments:
04/12 update: GS managed a bounce intraday off its three-week trendline of higher lows. The major banking indices closed lower but their losses weren't that bad today. That could change tomorrow. J.P.Morgan Chase (JPM) reports earnings tomorrow morning. JPM's results could have a very big impact on the rest of the financial sector. If investors are happy with the report then GS and the rest of the group should rally. I am suggesting that we exit our April GS calls tomorrow at the closing bell.

- Suggested Positions -

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

04/12 Plan on exiting Wednesday, April 13th at the close.

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


Honeywell Intl. Inc. - HON - close: 57.53 change: -0.73

Stop Loss: 56.99
Target(s): 62.75
Current Option Gain/Loss: -39.0%
Time Frame: less than two weeks
New Positions: see below

Comments:
04/12 update: It's not looking good for our new call plan on HON. Shares broke down under support at the $58.00 level. Traders did buy the dip near technical support near its 50-dma but if the market continues lower tomorrow then odds are pretty good that HON could hit our stop loss at $56.99. I am not suggesting new positions at this time. Our upside target is $62.75 but we will plan on exiting ahead of the April 21st earnings report.

- Suggested Positions -

Long the May $60.00 call (HON1121E60) Entry @ $1.10

Entry on April 11th at $58.35
Earnings Date 04/21/11 (confirmed)
Average Daily Volume = 4.0 million
Listed on April 9th, 2011


Norfolk Southern - NSC - close: 67.77 change: +0.11

Stop Loss: 65.70
Target(s): 72.00, 74.90
Current Option Gain/Loss: -100.0%, and -28.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/12 update: Transports were trying to rally on the weakness in oil but NSC only managed a +0.16% gain. I remain cautious here. Readers may want to wait for a dip closer to $66 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

04/09 New stop loss @ 65.70

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: 120.48 change: -0.02

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: - 95.1%, and -43.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/12 update: Your quote provider is probably listing PNRA's low today at $119.83 but this morning there appears to have been a bad tick with a gap down at $119.07. With a stop loss at $119.00 our trade is still open but readers may want to abandon ship anyway, especially with the widespread weakness across the market today. I am not suggesting new bullish positions at this time.

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%)

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: 100.53 change: -0.84

Stop Loss: 98.90
Target(s): 104.75, 109.00
Current Option Gain/Loss: -25.6%, and -39.2%
2nd Position Gain/Loss: - 0.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/12 update: Bingo! We have been looking for PX to dip toward $100 as a new entry point. Shares hit $100.20 late this afternoon. I am listing this as a new entry point below (second position) but I am also raising our stop loss to $98.90. More conservative traders may want to wait for a bounce from current levels before considering new positions. Keep your position size small.

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.

- Suggested Positions -

Long the May $100 call (PX1121E100) entry @ $3.90

- or -

Long the May $105 call (PX1121E105) entry @ $1.40

- Second Entry Point, April 12th, Entry April 13th -
- Keep Positions Small -

Buy the May $100 call (PX1121E100) Current ask $3.10

04/12 New stop loss at $98.90
04/12 Second position on dip near $100
04/09 new stop loss @ 97.90

Entry on March 30th at $101.54
Earnings Date 04/27/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on March 29th, 2011


Sohu.com - SOHU - close: 93.21 change: -1.53

Stop Loss: 87.40
Target(s): 99.90, 107.50
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: The strength in Chinese Internet stocks faded on Tuesday. Global markets, including China, were down across the board for the second day in a row. SOHU fell -1.6% and closed under its 10-dma. I would expect another dip near $90.00. Depending on your trading style we can use a dip near $90.00 as an entry point to buy calls or wait for another bounce from the $90 area.

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

04/11 Adjusted first exit target to $99.90

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: 90.43 change: +0.08

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +28.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/12 update: SRCL is still showing a little relative strength by posting a gain but the gains today were pretty minor. Shares are hovering near the $90 level. Given the short-term bullish trend of higher lows I would be tempted to buy calls here but the overall weakness in the major indices would suggest this is not a good time to launch new call positions. 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

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


Vertex Pharmaceuticals - VRTX - close: 47.97 change: -0.25

Stop Loss: 45.95
Target(s): 51.85, 58.50
Current Option Gain/Loss: + 4.0%
Time Frame: about 2, maybe 3 weeks
New Positions: see below

Comments:
04/12 update: VRTX recovered from its initial declines this morning but shares spent the day consolidating sideways. If you are looking for an entry point I'd wait for another bounce from $47.00 or a breakout past $49.00. Keep in mind that this is a very aggressive trade.

Our first target is $51.85. Our second, much more aggressive target is $58.50 but again, we don't have a lot of time so we may have to exit early. I am listing our stop at $45.95, under last week's lows.

- Very Small Bullish Positions -

Long the May $50.00 calls (VRTX1121E50) Entry @ $2.50

Entry on April 10th at $48.28
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on April 9th, 2011


Whole Foods Market Inc. - WFMI - close: 62.90 change: -0.26

Stop Loss: 59.90
Target(s): 64.75, 69.00
Current Option Gain/Loss: - 89.2%, and - 1.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: WFMI's decline today erased yesterday's minor bounce. Yet traders did buy the dip near $62.00 this morning. This move looks like a new bullish entry point to buy calls but I'm hesitant to launch new positions with the S&P 500 and the NASDAQ looking poised for more declines. 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

Entry on March 21 at $61.55
Earnings Date 05/11/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on March 19th, 2010


Whiting Petroleum Corp - WLL - close: 68.16 change: -3.27

Stop Loss: 64.40
Target(s): 69.75, 74.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks maybe
New Positions: Yes, see trigger

Comments:
04/12 update: Just as expected shares of WLL continued to correct lower. The stock lost -4.5% and appears to have found some support near $68.00. I am adjusting our buy-the-dip entry point from $66.50 to $66.00. More aggressive traders may want to consider buying a dip near the rising 50-dma.

More conservative traders could wait for a dip closer to the $65.00 mark. If triggered our targets are $69.75 and $74.00. We do not want to hold over the late April earnings report but so far the date is unconfirmed.

Trigger @ $66.00

- Suggested Positions -

Buy the May $70 call (WLL1121E70) current ask $2.70

Entry on April xxth at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on April 11th, 2011


Wellpoint Inc. - WLP - close: 69.74 change: +0.49

Stop Loss: 67.45
Target(s): 72.25, 74.75
Current Option Gain/Loss: -70.3%, and -27.5%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/12 update: Healthcare stocks were one of the few sectors showing any strength today. WLP is bouncing toward the top of its trading range with resistance at $70.00. I would prefer to see a rally past the $70.00 mark before considering new bullish positions. 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

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

Caterpillar Inc. - CAT - close: 106.57 change: -2.50

Stop Loss: 107.40
Target(s): 109.00, above $112 for Aprils, $114.90 for Mays
Current Option Gain/Loss: - 10.2%, and -12.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/12 update: News that CAT was upgraded to a "buy" this morning was no help for the stock price. Widespread declines helped push CAT under the $108 level. Shares hit our stop loss at $107.40 closing this trade. Volume was strong on the sell-off, which doesn't bode well for CAT. The long-term trend is still up so nimble traders can watch for potential support near the 50-dma.

The April $105 calls were trading with a bid near $3.05 and the May $110s had a bid near $2.75 when CAT hit our stop loss.

- Suggested Positions -

April $105 calls (CAT1116D105) Entry @ $3.40, Exit $3.05 (-10.2%)

- or -

May $110 calls (CAT1121E110) Entry @ $3.15, Exit $2.75 (-12.6%)

04/12/11 Stopped out @ 107.40, Options @ -10.2% and -12.6%
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


CSX Corp. - CSX - close: 75.37 change: -0.84

Stop Loss: 74.90
Target(s): 79.90, 83.75
Current Option Gain/Loss: -98.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/12 update: The DJUSRR railroad index managed a bounce today but that wasn't enough to save CSX. Shares were downgraded this morning and CSX reacted with a gap open lower at $74.76. Our stop loss to exit was $74.90 so the play was closed immediately. Our new position in the May $80 calls should never have opened this morning with CSX's gap down under our stop loss.

Our plan was to keep our position size small to limit our risk.

- Small Bullish Positions -

April $80 calls (CSX1116D80) Entry @ $1.06, Exit $0.02 (-98.1%)

May $80 calls (CSX1121E80) - aborted before entry on CSX's gap down.

04/12 Stopped out/gap down. April call @ -98%
04/11 Entry point to buy calls near $76.00.
04/11 New stop loss @ 74.90
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


Jones Lang Lasalle Inc. - JLL - close: 102.76 change: -0.40

Stop Loss: 97.90
Target(s): 102.50, 109.00
Current Option Gain/Loss: +29.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/12 update: I am suggesting an early exit in JLL. Yesterday I wrote that we may want to exit on any bounce back into the $104.50-105.00 zone. Well JLL rallied to $104.80 today thanks to an analyst upgrade this morning. While it looks like JLL wants to breakout from this sideways consolidation I am suggesting we go ahead and exit now since we are holding April calls (current bid $4.40). More aggressive traders may want to risk it and hold on for a couple of more days but these options will expire after Friday.

Prior Comments:
We wanted to keep our position size small to limit our risk.

- Suggested Positions - (Small Positions)

April $100 calls (JLL1116D100) Entry @ $3.40, Exit $4.40 (+29.4%)

04/12 Exit Early. JLL @ 104.25. Option +29.4%
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: 43.23 change: -1.98

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: -53.9%, and -70.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: Oil and energy stocks were hammered lower today with the energy sector as the market's worst performer on Tuesday. NE gapped open lower at $44.56 and quickly plunged through the $44.00 level, hitting our stop loss at $43.95. Shares eventually dipped toward their 50-dma near $43.

- Suggested Positions -

May $46.00 calls (NE1121E46) Entry @ $2.17, Exit $1.00 (-53.9%)

- or -

May $48.00 calls (NE1121E48) Entry @ $1.37, Exit $0.40 (-70.8%)

04/12 Stopped out @ 43.95, Options @ -53.9% & -70.8%

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