Editor's Note:

JPM's better than expected earnings report failed to lift the banks on Wednesday. Meanwhile our new put play is off to a good start.

I'm suggesting an early exit for our GS call play. Our HON trade has been stopped out.

-James

Current Portfolio:


CALL Play Updates

CH Robinson Worldwide Inc. - CHRW - close: 74.37 change: +0.13

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:
04/13 update: The Dow Transportation index closed in the red, probably due to the bounce in oil prices on Wednesday. Yet CHRW managed to eke out another small gain. I remain cautious here. The bounce from its 50-dma looks like a new entry point but the broader market looks vulnerable. 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: 63.14 change: +0.14

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:
04/13 update: Shares of FO continue to churn quietly in a narrow range near the $63.00 level. 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: 141.90 change: +0.29

Stop Loss: 137.00
Target(s): 149.50, 154.50
Current Option Gain/Loss: -30.9%, and -27.6%
2nd Option Position Gain/loss: -14.1% and -11.8%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/13 update: The U.S. dollar managed a bounce off its early morning lows. The GLD saw a reverse of the move with a gap open that slowly faded lower. Overall gold traded in a narrow range. There is no change from my prior comments. I would still consider new positions now in the $142-140 zone.

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 -

Long the May $145 call (GLD1121E145) Entry @ $1.48

- or -

Longthe June $150 call (GLD1118F150) Entry @ $1.10

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


Norfolk Southern - NSC - close: 67.83 change: +0.06

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:
04/13 update: The bounce in the transportation sector stalled. NSC has been churning sideways in the $67-68 zone for three days now. There is no change from my prior comments. Readers may want to wait for a dip closer to support near $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: 123.38 change: +2.90

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: - 80.4%, and -23.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/13 update: PNRA displayed some impressive strength with a +2.4% gain strong volume. This is very encouraging. We need to pick an exit for the remainder of our April $125 calls since these expire in two days. You could exit now or you could roll the dice and hope this bounces continues. PNRA would need to trade near $127 if we wanted to avoid a loss on that position.

I am not suggesting new positions at this time. Our final target for the May calls is $134.50. Yet 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: 101.38 change: +0.85

Stop Loss: 98.90
Target(s): 104.75, 109.00
Current Option Gain/Loss: -15.3%, and -28.5%
2nd Position Gain/Loss: - 0.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/13 update: PX is bouncing from round-number support near $100. Today's rebound erased yesterday's losses. Technically this looks like a new bullish entry point but I am urging caution given the recent weakness in the market's major averages. 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 -

Long the May $100 call (PX1121E100) Entry @ $3.30

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: 96.32 change: +3.11

Stop Loss: 89.75
Target(s): 99.90, 107.50
Current Option Gain/Loss: +15.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13 update: The Chinese Internet stocks were in rally mode again. SOHU produced a +3.3% bounce on decent volume. There is still some short-term resistance near $99.00 but more aggressive traders could buy calls on this bounce and just move your stop loss higher toward the $92 level. Speaking of stop losses the newsletter is moving our stop loss to $89.75.

Our first target to take profits is at $99.90.

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.

- Suggested Positions -

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

04/13 New stop loss @ 89.75
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: 90.69 change: +0.26

Stop Loss: 86.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +32.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/13 update: SRCL is still very, very slowly drifting higher. I would be tempted to buy calls here, however, I am still very concerned about this week's pull back in the stock market's major indices. The correction may not be over yet. 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: 47.40 change: -0.57

Stop Loss: 45.95
Target(s): 51.85, 58.50
Current Option Gain/Loss: - 8.0%
Time Frame: about 2, maybe 3 weeks
New Positions: see below

Comments:
04/13 update: Our aggressive, higher-risk trade in VRTX is seeing a little volatility. Yesterday I mentioned that readers could choose to launch positions on a rally past $49.00 or a bounce near $47.00. Well shares dipped to $46.82 and rebounded this afternoon. More conservative traders could up their stops closer to today's low.

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: 64.59 change: +1.69

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: - 46.1%, and +32.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13 update: Wednesday turned out to be a strong session for WFMI. The stock rallied to a +2.6% gain and paused at its 10-dma. This bounce looks like a new bullish entry point but again I'm urging caution here given the wider market's recent weakness.

We only have a couple of days left before our April $65 calls expire. Readers can exit now or they can roll the dice and hope this bounce continues. If it looks like WFMI will see a good close over $65.00 tomorrow I'll probably close our April position on Thursday.

Please note our new stop loss at $61.70.

- Suggested Positions -

Long the April $65 calls (WFMI1116D65) Entry @ $0.65

- or -

Long the May $65 calls (WFMI1121E65) Entry @ $2.25

04/13/11 New stop loss @ 61.70
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: 69.45 change: +1.29

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:
04/13 update: Oil stocks experienced a little oversold bounce today after yesterday's pummeling. Volume was big on WLL's decline yesterday but it was even stronger today. Although I wouldn't put too much faith into today's +1.8% gain. The stock actually failed near $71.40 to close off its best levels of the day. I am still expecting a dip lower.

I am suggesting we buy calls on WLL at $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: 69.15 change: -0.59

Stop Loss: 67.45
Target(s): 72.25, 74.75
Current Option Gain/Loss: -88.3%, and -39.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/13 update: The action today in WLP was a little bit worrisome. The stock tried to breakout past resistance near $70.00 but failed. WLP underperformed both the S&P 500 and its peers in the healthcare sector.

More conservative traders may want to up their stops closer to $68.00 or $68.50. Today's high was $70.24. I would wait for a rise past $70.25 before considering new positions. We do not want to hold over the late April earnings report.

We have two days left before April calls expire! Readers may want to exit their April position now.

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


PUT Play Updates

Apollo Group Inc. - APOL - close: 39.88 change: -1.23

Stop Loss: 44.25
Target(s): 38.15, 35.50
Current Option Gain/Loss: +46.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/13 update: Our new put play in APOL is off to a good start. Shares opened at $41.21 and fell to a -2.99% decline. The close under its 100-dma and the $40.00 mark is bearish! More conservative traders may want to use a stop closer to $43.50 instead. Our profit targets are $38.15 and $35.50.
The Point & Figure chart for APOL is bullish with a $31 target.

- Suggested Positions -

Long the May $40.00 puts (APOL1121Q40) Entry @ $1.24

Entry on April 13th at $41.21
Earnings Date 06/30/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on April 12th, 2011


CLOSED BULLISH PLAYS

Goldman Sachs - GS - close: 160.17 change: -0.25

Stop Loss: 157.00
Target(s): 169.75
Current Option Gain/Loss: - 89.0%
Time Frame: about two weeks
New Positions: see below

Comments:
04/13 update: Better than expected earnings from JPM this morning helped lift shares of GS at the open. Unfortunately the rebound in GS failed at technical resistance near the 100-dma and the $164.00 level. Shares of GS eventually settled with a minor loss. It was our plan to exit our April calls today at the closing bell.

- Suggested Positions -

April $165.00 call (GS1116D165) Entry @ $1.10, Exit $0.12 (-89%)

04/13 Exit early. Option @ -89%
04/12 Plan on exiting Wednesday, April 13th at the close.

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


Honeywell Intl. Inc. - HON - close: 57.31 change: -0.22

Stop Loss: 56.99
Target(s): 62.75
Current Option Gain/Loss: -54.5%
Time Frame: less than two weeks
New Positions: see below

Comments:
04/13 update: Positive analyst comments on HON this morning was not enough to offset some intraday weakness. Shares traded under $57.00 midday and hit our stop loss at $56.99.

- Suggested Positions -

May $60.00 call (HON1121E60) Entry @ $1.10, Exit $0.50 (-54.5%)

04/13 Stopped out @ 46.99, Option @ -54.5%

chart:

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