Editor's Note:

Our bullish plays on FOSL, INTU, and ROK all hit our triggers to open positions and buy calls. I'm suggesting an early exit from our NSC trade and dropping WLL as a trade. Our OEX put play was opened and closed within a few minutes of each other.

-James

Current Portfolio:


CALL Play Updates

Church & Dwight Co. Inc. - CHD - close: 79.69 change: +0.55

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:
04/20 update: The action in CHD today was not very inspiring. The stock underperformed the markets today with a +0.6% gain versus +1.3% in the S&P 500. Shares of CHD are still inside their trading range. At the moment 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: 77.11 change: +0.99

Stop Loss: 73.25
Target(s): 79.50
Current Option Gain/Loss: +37.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/20 update: CHRW outperformed the Dow Jones transportation index. The stock rallied to $77.91 intraday before settling with a +1.3% gain. Broken resistance near $76.00 might be new support. I am raising our stop loss to $73.85. More conservative traders might want a stop closer to $75 instead. We only have a few days left. 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: 63.06 change: +0.51

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:
04/20 update: FO gapped open higher and then spiked to a new 52-week high this morning. Yet shares are still trading under $64.00. Currently our plan is to buy calls when FO hits $64.00. If triggered at $64.00 our targets are $67.50 and $69.75. I would keep our position size small to limit our risk. We do not want to hold over the earnings report in early May.

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: 95.95 change: +3.55

Stop Loss: 91.95
Target(s): 99.75, 104.75
Current Option Gain/Loss: - 5.6%, and - 1.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/20 update: Our FOSL play is now open. The market's strength helped FOSL gap open higher at $94.08 and then rally through resistance at $95.00 to close at new all-time highs. Our trigger to buy calls was hit at $95.60 this morning. I would still consider new positions now.

Keep positions small. 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.

(small positions only) - Suggested Positions -

Long the May $100 call (FOSL1121E100) Entry @ $2.65

- or -

Long the June $100 call (FOSL1118F100) Entry @ $3.75

chart:

Entry on April 20th at $95.60
Earnings Date 05/10/11 (unconfirmed)
Average Daily Volume = 858 thousand
Listed on April 13th, 2011


SPDR Gold ETF - GLD - close: 146.50 change: +0.57

Stop Loss: 139.90
Target(s): 149.50, 154.50
Current Option Gain/Loss: +73.9%, and +61.6%
2nd Option Position Gain/loss: +116.2% and +95.4%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/20 update: The drop in the U.S. dollar this morning lifted gold to $1,506 an ounce this morning. Unfortunately, gold closed off its highs of the day and under $1,500. The GLD managed to breakout above the $146.00 level. I am not suggesting new positions at this time. We'll wait to evaluate the next dip.

I am raising our stop loss to $139.90. More conservative traders may want a stop closer to the $142 area. 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

04/20 New stop loss @ 139.90

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


Intuit - INTU - close: 56.07 change: +1.61

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: - 2.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/20 update: Technology stocks were leading the market higher on Wednesday. INTU gapped open higher at $55.15 and quickly hit our trigger to buy calls at $55.25. If you missed the entry point you may want to wait for a dip back into the $55.50 area before initiating positions.

I would keep our position size small to limit our risk (1/2 or less than your normal trade size). Our first target is $57.50.

- Suggested Positions -

Long the May $55.00 call (INTU1121E55) Entry @ $2.40

chart:

Entry on April 20th at $55.25
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 14th, 2011


Panera Bread Co. - PNRA - close: 123.38 change: +0.72

Stop Loss: 119.00
Target(s): 129.50, 134.50
Current Option Gain/Loss: -34.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/20 update: Hmm... it was a quiet day for PNRA. The rally this morning stalled under the $125 level. This doesn't bode well. Shares might be range bound until the company's earnings report next week. I am not suggesting new positions at this 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: 106.23 change: +0.39

Stop Loss: 101.25
Target(s): 104.75, 109.00
Current Option Gain/Loss: +69.2%, and +100.0%
2nd Position Gain/Loss: +100.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/20 update: PX hit another new high today at $106.82. If you're looking for a new entry point consider waiting for a dip near $104.00, which should be new support. We will plan to exit ahead of the April 27th earnings report. Our second and final target is $109.00.

Please note our new stop loss at $101.25.

- 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

04/20 new stop loss @ 101.25
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

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: 94.64 change: +3.12

Stop Loss: 90.45
Target(s): 99.50
Current Option Gain/Loss: + 12.2%
Time Frame: six trading days
New Positions: see below

Comments:
04/20 update: ROK has hit our trigger to buy calls at $93.75. The stock gapped open this morning at $93.11 before surging past last week's highs. This is a very short-term trade as we only have three trading days left. ROK is due to report earnings on the morning of April 27th. That means we'll need to exit the night before. Our exit target is $99.50. More conservative traders could exit around $97.50 instead since the current high is just under $98.00.

(Small Positions) - Suggested Positions -

Long the May $95 calls (ROK1121E95) Entry @ $2.45

chart:

Entry on April 20th at $93.75
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on April 16th, 2011


SL Green Realty Corp. - SLG - close: 77.44 change: +0.76

Stop Loss: 73.99
Target(s): 79.95
Current Option Gain/Loss: -13.6%
Time Frame: just a few days
New Positions: see below

Comments:
04/20 update: Honestly, I was expecting more out of SLG today. The stock gapped open higher at $77.76. Shares settled off their high with +0.99% gain. The stock remains under its early April high near $78.00. This is a short-term trade. We only have a few trading days until SLG reports earnings. If the stock fails to hit our target we will exit on April 27th to avoid holding over the report. Our target is $79.95. FYI: The Point & Figure chart for SLG is bullish with a $94 target.

- Small Bullish Positions -

Long the May 80.00 call (SLG1121E80) Entry @ $1.10

Entry on April 20th at $77.76
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 800 thousand
Listed on April 19th, 2011


Sohu.com - SOHU - close: 94.91 change: -3.35

Stop Loss: 91.49
Target(s): 99.90, 107.50
Current Option Gain/Loss: - 5.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/20 update: Warning! The action in SOHU yesterday and now today both look like possible bearish reversal patterns. More conservative traders may want to exit immediately. I am suggesting that we plan to exit tomorrow (Thursday) at the closing bell to avoid holding over earnings on Monday morning (since markets are closed on Friday).

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

04/20 Plan to exit tomorrow at the close.
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

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: 92.91 change: +2.25

Stop Loss: 88.95
Target(s): 94.50, 98.50
Current Option Gain/Loss: +72.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/20 update: SRCL surged +2.4% and is now challenging its early April highs. I am adjusting our first exit/profit target from $93.50 to $94.50. I am also moving our stop loss higher to $88.95. We only have a few days left. We plan to exit ahead of the April 27th earnings report.

- Suggested Positions -

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

04/20 New stop loss @ 88.95, new first target @ 94.50
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: 47.98 change: +1.16

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:
04/20 update: VRTX is bouncing with the market and added +2.4% on Wednesday. Volume remains light. I am still cautious on this stock and would like to see VRTX break the trend of lower highs.

I am not suggesting new positions at this time. If VRTX does manage to keep climbing we'll exit ahead of the May 3rd earnings report, unless shares hit our targets first. Our first target is $51.85. Our second, much more aggressive target is $58.50.

- Very Small Bullish Positions -

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

Entry on April 10th at $48.28
Earnings Date 05/03/11 (confirmed)
Average Daily Volume = 2.1 million
Listed on April 9th, 2011


Whole Foods Market Inc. - WFMI - close: 65.67 change: +1.75

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: +44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/20 update: WFMI was showing some relative strength today with a +2.7% gain. The new two-week high can be used as an entry point or better yet wait for a dip near $65.00-64.50 instead. 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


PUT Play Updates

Apollo Group Inc. - APOL - close: 38.68 change: -0.75

Stop Loss: 42.55
Target(s): 38.15, 35.50
Current Option Gain/Loss: +70.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/20 update: We were fortunate with APOL today. Normally a widespread market rally can overpower bearish technicals. Yet some of the educational names were underperforming. APOL slipped to new two-week lows and closed down -1.9%. 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


CLOSED BULLISH PLAYS

Norfolk Southern - NSC - close: 66.68 change: -0.57

Stop Loss: 65.90
Target(s): 72.00, 74.90
Current Option Gain/Loss: -67.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/20 update: The railroad stocks are struggling. CSX reported better than expected results but traders sold the news. UNP missed by two cents but beat on revenues and investors sold the news. Both stocks are off their lows of the day but they definitely underperformed. Word on the street was that investors were looking for even better numbers from the rails. Shares of NSC initially rallied higher but failed at resistance near $68.00 and then plunged to a new relative low at $65.94. Our stop loss is at $65.90.

With the railroad stocks underperforming the rest of the market I am suggesting we exit our NSC trade immediately.

- Suggested Positions -

May $70 calls (NSC1121E70) Entry @ $1.40, exit 0.45 (-67.8%)

04/20 Exit early. Option @ -67.8%
04/16 New stop loss @ 65.90
04/16 April $70 calls have expired (-100%)
04/09 New stop loss @ 65.70

chart:

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


Whiting Petroleum Corp - WLL - close: 71.73 change: +1.84

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:
04/20 update: I am dropping WLL as a candidate. Our buy-the-dip strategy in WLL never panned out. Aggressive traders might be tempted to buy a breakout past $72.00 but keep in mind earnings are coming up on April 28th. Our entry point was never hit.

chart:

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


CLOSED BEARISH PLAYS

S&P 100 Index - OEX - close: 593.02 change: +7.13

Stop Loss: 592.55
Target(s): 578.00, 565.00
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/20 update: I cautioned readers that trading OEX options could be volatile. Last night I warned readers that the positive reaction to earnings results could power the market higher and that we may not want to open put positions here.

The OEX gapped open higher at $588.94 and then surged to an intraday high of $594.26. Our trigger to buy puts was at $587.50 so the play was opened immediately and in a few minutes it was closed with our stop loss at $592.55. The option gapped down to open at $3.00.

Triggered & Stopped on the same move.

May $570 PUT (OEX1121Q570) Entry @ $3.00, Exit @ 2.75 (-8.3%)

04/20 Triggered & Stopped out in the same rally. Option @ -8.3%

chart:

Entry on April 20th at $588.94
Earnings Date --/--/--
Average Daily Volume =
Listed on April 18th, 2011