Editor's Note:

Our bullish plays on PX and SOHU both hit our initial profit targets today.

-James

Current Portfolio:


CALL Play Updates

Church & Dwight Co. Inc. - CHD - close: 79.13 change: -0.47

Stop Loss: 79.45
Target(s): 84.75, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
04/19 update: CHD continued to sink toward the bottom of its four-week trading range. Traders bought the dip near $78.50. Aggressive traders could buy calls now with a stop loss under $78.50. We're still waiting for a breakout. I am suggesting a trigger to buy calls at $81.35. If triggered we'll use a stop loss at $79.45.

I do consider an aggressive trade because CHD doesn't have a lot of option volume and the spreads on its options are relatively wide. Keep your position size small to limit your risk.

Trigger @ $81.35 (Small Positions Only!)

- Suggested Positions -

Buy the May $85 call (CHD1121E85) current ask $0.35

Entry on April xxth at $ xx.xx
Earnings Date 05/10/11 (unconfirmed)
Average Daily Volume = 390 thousand
Listed on April 16th, 2011


CH Robinson Worldwide Inc. - CHRW - close: 76.12 change: +0.24

Stop Loss: 73.25
Target(s): 79.50
Current Option Gain/Loss: +13.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: Transports were inching higher just as oil drifted higher. CHRW rebounded from another test of its 100-dma and shares closed above short-term resistance near $76.00.

Keep in mind our time frame. CHRW is due to report earnings on April 26th and we do not want to hold over the announcement. I would keep your position size small to limit your risk.

- Suggested Positions -

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

04/16 new stop loss @ 73.25
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: 62.55 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:
04/19 update: FO did not make much progress today. We are waiting for a breakout higher. Currently our plan is to buy calls when FO hits $64.00. Now that we know earnings are in early May it gives us about three weeks for this trade to work.

If triggered at $64.00 our targets are $67.50 and $69.75. I would keep our position size small to limit our risk.

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

Trigger @ $64.00 (Small Positions)

- Suggested Positions -

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

Entry on April xxth at $ xx.xx
Earnings Date 05/05/11 (confirmed)
Average Daily Volume = 973 thousand
Listed on April 5th, 2011


Fossil Inc. - FOSL - close: 92.40 change: +0.56

Stop Loss: 91.95
Target(s): 99.75, 104.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
04/19 update: FOSL spent the session churning sideways near $92.00. Currently our plan is to buy calls on a breakout higher with a trigger to open positions at $95.60.

Keep positions small. If triggered our first target is $99.75. The $100.00 mark is probably round-number, psychological resistance. We'll set a secondary target at $104.75 but that might be wishful thinking.

Trigger @ 95.60 (small positions only)

- Suggested Positions -

Buy the May $100 call (FOSL1121E100) current ask $2.65

- or -

Buy the June $100 call (FOSL1118F100) current ask $3.70

Entry on April xxth at $ xx.xx
Earnings Date 05/10/11 (unconfirmed)
Average Daily Volume = 858 thousand
Listed on April 13th, 2011


SPDR Gold ETF - GLD - close: 145.93 change: +0.00

Stop Loss: 137.00
Target(s): 149.50, 154.50
Current Option Gain/Loss: +61.4%, and +54.1%
2nd Option Position Gain/loss: +100.6% and +84.5%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/19 update: Gold prices hit $1,500 an ounce. This is likely round-number, psychological resistance. The precious metal consolidated sideways near this level today. Meanwhile the GLD is hovering near the $146.00 mark and closed unchanged on the day. I am not suggesting new positions at this time. We'll wait to evaluate the next dip.

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 -

Long the 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


Intuit - INTU - close: 54.46 change: +0.31

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
04/19 update: INTU is still consolidating sideways under resistance near $55.00. The stock seems to be building up steam for a breakout higher. Our plan is to buy calls when shares hit $55.25.

If triggered we'll use a stop at $53.45. I would keep our position size small to limit our risk (1/2 or less than your normal trade size).

Trigger @ 55.25

- Suggested Positions -

Buy the May $55.00 call (INTU1121E55) current ask $1.75

Entry on April xxth at $ xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 14th, 2011


Norfolk Southern - NSC - close: 67.25 change: +0.35

Stop Loss: 65.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: -60.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/19 update: Railroad stock NSC has been not been making much progress. Shares drifted sideways today. Hopefully that will change tomorrow since after the bell tonight rival CSX reported earnings that were two cents better than expected. Another railroad company, UNP, reports earnings tomorrow and Wall Street is expecting a profit of $1.31 from UNP.

Aggressive traders may want to consider new positions here. I would prefer to see a new NSC rally past $68.50 before launching new positions.

Don't forget that earnings are April 27th and we do not want to hold over the announcement. Our targets are $72.00 and $74.90.

- Suggested Positions -

Long the May $70 calls (NSC1121E70) Entry @ $1.40

04/16 New stop loss @ 65.90
04/16 April $70 calls have expired (-100%)
04/09 New stop loss @ 65.70

Entry on March 25th at $67.84
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 3.0 million
Listed on March 24th, 2011


Panera Bread Co. - PNRA - close: 122.66 change: +0.73

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: -41.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/19 update: PNRA seems to be stuck in the $120-125 zone. Shares spiked higher this morning near $125 but that appears to be a bad tick. Outside of the morning spike, PNRA spent the day moving sideways near $122. I am growing cautious on the stock and we're running out of time. We will plan to exit ahead of the April 26th earnings report. Our final target for the May calls is $134.50.

- Suggested Positions -

Long the May $130 call (PNRA1121E130) Entry @ $3.35

04/16 April calls have expired @ -100%
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: 105.84 change: +2.94

Stop Loss: 98.90
Target(s): 104.75, 109.00
Current Option Gain/Loss: +61.5%, and +89.2%
2nd Position Gain/Loss: +90.9%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/19 update: Target achieved. I could not find any specific news behind the relative strength in PX today. The stock shot higher and once it cleared resistance near $104 it continued to rally. The stock closed with a +2.8% gain and a new all-time high. Our first target was hit at $104.75. I would not launch new bullish positions at this time.

FYI: The May $100 call was trading with a bid near $5.90 at our target. The May $105 call had a bid near $1.80.

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 April 27th 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

04/19 1st Target Hit @ $104.75. May $100 call @ $5.90 (+51.2%), May $105 call @ $1.80 (+28.5%), 2nd position on May $100 call @ $5.90 (+78.7%)
04/12 New stop loss at $98.90
04/12 Second position on dip near $100
04/09 new stop loss @ 97.90

chart:

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


Rockwell Automation - ROK - close: 91.16 change: -1.89

Stop Loss: 90.45
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: six trading days
New Positions: Yes, see Trigger

Comments:
04/19 update: ROK is still moving sideways. There is no change from my prior comments. Aggressive traders may want to consider buying calls right now with a tight stop close to $90.00. The newsletter will stick to our original plan. I'm suggesting we buy calls with a trigger at $93.75. If triggered our exit target is $99.50. More conservative traders could exit around $97.50 instead since the current high is just under $98.00.

Trigger @ $93.75 (Small Positions)

- Suggested Positions -

Buy the May $95 calls (ROK1121E95) current ask $2.50

Entry on April xxth at $ xx.xx
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on April 16th, 2011


Sohu.com - SOHU - close: 98.26 change: +2.19

Stop Loss: 91.49
Target(s): 99.90, 107.50
Current Option Gain/Loss: +29.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: I've got good news and bad news. The good news is that SOHU has hit our initial target at $99.90. The bad news is the spike higher reversed at $102.42 and now it looks like a failed rally/bearish reversal move. I am not suggesting new bullish positions at this time. FYI: The May $100 call had a bid near $6.15 when SOHU hit our target.

Remember, we plan to exit ahead of the April 25th earnings report. Please note our new stop loss at $91.49.

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.

- Suggested Positions -

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

04/19 New stop loss @ 91.49
04/19 1st Target Hit @ 99.90, Option @ +44.7%
04/13 New stop loss @ 89.75
04/11 Adjusted first exit target to $99.90

chart:

Entry on April 4th at $92.50
Earnings Date 04/25/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on April 2nd, 2011


Stericycle Inc. - SRCL - close: 90.66 change: +0.22

Stop Loss: 87.75
Target(s): 93.50, 98.50
Current Option Gain/Loss: +18.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/19 update: SRCL garnered some positive analyst comments this morning but they failed to move the stock. Shares traded sideways in a narrow range. We plan to exit ahead of the April 27th earnings report. Our targets are $93.50 and $98.50.

- Suggested Positions -

Long the May $90 calls (SRCL1121E90) Entry @ $2.50

04/16 new stop loss @ 87.75
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: 46.82 change: -0.17

Stop Loss: 45.95
Target(s): 51.85, 58.50
Current Option Gain/Loss: -28.0%
Time Frame: about 2, maybe 3 weeks
New Positions: see below

Comments:
04/19 update: I am starting to think it's time to pull the plug on our VRTX trade. The stock seems to be getting weaker. I am not suggesting new positions at this time. If VRTX doesn't improve soon we'll drop it.

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: 63.92 change: +0.57

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: + 5.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: WFMI produced a +0.8% gain. I remain cautious on the stock in the $64-62 zone. I am not suggesting new positions at this time although nimble traders can look for a dip or bounce near $62.00 as a possible entry point. We do not want to hold positions over the early May earnings report.

- Suggested Positions -

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

04/16/11 April calls have expired @ -100%
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 05/04/11 (confirmed)
Average Daily Volume = 1.9 million
Listed on March 19th, 2010


Whiting Petroleum Corp - WLL - close: 69.89 change: +0.16

Stop Loss: 64.45
Target(s): 69.75, 74.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks maybe
New Positions: Yes, see trigger

Comments:
04/19 update: We are running out of time with WLL and our play isn't even open yet. I'm will consider dropping WLL as a candidate soon. Aggressive traders may want to buy dips near $68.00 or the 50-dma. Our plan is to buy calls on a dip at $66.00. 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


PUT Play Updates

Apollo Group Inc. - APOL - close: 39.43 change: -0.61

Stop Loss: 42.55
Target(s): 38.15, 35.50
Current Option Gain/Loss: +35.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/19 update: All right, now that's more like it. APOL is showing relative weakness while the rest of the market bounces. I am adjusting our stop loss down to $42.55, which is above the 200-dma. I am not suggesting new positions at this time. 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

04/19 New stop loss @ 42.55

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


S&P 100 Index - OEX - close: 585.89 change: +3.39

Stop Loss: 592.55
Target(s): 578.00, 565.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
04/19 update: As expected the market and the OEX are bouncing. The OEX should encounter resistance in the 588-590 area. I am suggesting small bearish positions when the OEX hits $587.50.

As an alternative readers could wait for another failed rally near 590 instead. If triggered at 587.50 we'll use a stop loss at 592.55. More conservative traders could use a stop closer to 591 or 590.50ish. Our targets are $578 and $565. I would keep our position size small. Trading OEX options can be volatile.

FYI: As an alternative, you could trade puts on the SPY (S&P 500 ETF) for a lot less money.

After Hours Update: Stocks are climbing after hours in reaction to stronger than expected earnings news. The NASDAQ could lead the markets higher tomorrow. Readers may want to wait on launching any OEX put positions even if the OEX hits our trigger at 587.50. Consider waiting for the rally to pause (maybe near 590) before considering new positions here.

Trigger @ 587.50

- Suggested Positions -

Buy the May $570 PUT (OEX1121Q570)

Entry on April xxth at $ xx.xx
Earnings Date --/--/--
Average Daily Volume =
Listed on April 18th, 2011