Editor's Note:

The market's surge to a new relative high hit both some triggers to launch positions and some targets to take profits. CHRW and VRTX hit targets. We are taking an early exit in PX and ROK. FAST, FO and JOSB all hit our triggers to buy calls. PNRA was stopped out.

-James

Current Portfolio:


CALL Play Updates

Deere & Co - DE - close: 97.00 change: +2.28

Stop Loss: 92.49
Target(s): 99.70
Current Option Gain/Loss: +45.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/26 update: Industrial stocks were a bright spot in the market today. DE gapped open higher above $96 and rallied to $97.78 intraday. I would still consider new positions on dips near the $95 area. Our target is $99.70. We will not hold positions over the mid May earnings report.

NOTE: Traders should be aware that DE's rival Caterpillar (CAT) reports earnings on April 29th. CAT's results could have a big impact on DE.

- Suggested Positions -

Long the May $97.50 call (DE1121E97.5) Entry @ $1.61

Entry on April 21st at $95.25
Earnings Date 05/18/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on April 20th, 2011


Fastenal Co. - FAST - close: 66.11 change: +0.81

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: -11.3% & -20.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/26 update: Our new play on FAST has been opened. Shares rallied to new two-week highs and closed above resistance at the $66.00 level. Our trigger to buy calls was hit at $66.25. I would still consider new positions now at current levels. Our targets are $69.50 and $74.00. We should expect the $70.00 area to offer some resistance and FAST will likely pull back on the first test of $70.

FYI: FAST is due to split 2-for-1 on May 23rd. Plus, the Point & Figure chart for FAST is bullish with a $72 target.

- Suggested Positions -

Long the May $65.00 calls (FAST1121E65) Entry @ $2.20

- or -

Long the June $70.00 calls (FAST1118F70) Entry @ $0.75

chart:

Entry on April 26th at $66.25
Earnings Date 04/12/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on April 23rd, 2011


Fortune Brands - FO - close: 64.16 change: +0.72

Stop Loss: 61.75
Target(s): 67.50, 69.75
Current Option Gain/Loss: - 15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/26 update: Finally, after three weeks of consolidating sideways shares of FO finally broke out past the $64.00 level. Our trigger to buy calls was hit at $64.00. Helping drive the stock higher was news from the company's annual shareholder meeting. FO said they were making progress in splitting up the company's three businesses. While the split up still needs to be approved they did announce the new names of the three businesses. Its liquor business will be called Beam Inc. after its Jim Beam brand. The home products business will be called Fortune Brands Home & Security. The golf business will be called Acushnet Company. No date yet has been set for the split up. We plan to exit ahead of the May 5th earnings date anyway.

Now that the trade is open our first target is $67.50.

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

(Small Positions) - Suggested Positions -

Long the May $65.00 call (FO1121E65) Entry @ $1.00

chart:

Entry on April 26th at $64.00
Earnings Date 05/05/11 (confirmed)
Average Daily Volume = 973 thousand
Listed on April 5th, 2011


Fossil Inc. - FOSL - close: 95.89 change: -0.74

Stop Loss: 91.95
Target(s): 99.75, 104.75
Current Option Gain/Loss: -11.3%, and - 4.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/26 update: It was disappointing to watch FOSL. Shares failed to participate in the market's rally on Tuesday but the stock is holding support near $95.00. I remain bullish on FOSL but we do not want to hold positions over the earnings report in May.

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

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: 146.38 change: -0.49

Stop Loss: 139.90
Target(s): ---.--, 154.50
Current Option Gain/Loss: +63.0%, and + 84.9%
2nd Option Position Gain/loss: +102.7% and +126.3%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/26 update: The dollar dropped to another new relative low today but that didn't help the commodities. As expected gold hit some profit taking. The GLD opened at $146.47. Shares did pare their losses to close down -0.33%. I am not suggesting new positions at this time. We can re-evaluate new entry points on dips near $144 or $142.

More conservative traders may want a stop closer to the $142 area. 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

04/26 UPDATE: The gap down on Tuesday morning affected our exit prices. May $145 call @ +58.6% and +97.2%. June $150 calls @ +68.4% and +103.6%
04/25 Take Profits Now. Sell all or part of our position. Options are at: May $145 calls $3.50 (+90.2% & +136.4%), June $150 calls $2.76 (+107.5% & +150.9%)
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


Google Inc. - GOOG - close: 532.82 change: +7.77

Stop Loss: 518.75
Target(s): 558.00
Current Option Gain/Loss: +26.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/26 update: Strength in tech stocks helped lift GOOG to $537.44 intraday. The stock eventually settled with a +1.4% gain. If you were waiting for a close over $531 then you got it today. Otherwise I am not suggesting new positions at these levels. I'm setting our exit target a $558.00. More aggressive traders could aim for GOOG to fill the gap and rise into the $565-570 area.

Prior Comments:
This is a very aggressive, higher-risk trade. Keep positions small.

(Very Small Positions) Suggested Positions:

Long the May $550 call (GOOG1121E550) Entry @ $3.00

Entry on April 25th at $525.25
Earnings Date 04/14/11 (confirmed)
Average Daily Volume = 3.3 million
Listed on April 23rd, 2011


Intuit - INTU - close: 54.99 change: -0.04

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: -31.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/26 update: It was another quiet day for INTU. I have been warning readers to expect a dip toward $54.00. Readers may want to wait for a bounce from $54.00 instead of buying the initial dip.

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

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


Jos. A Bank Clothiers - JOSB - close: 52.78 change: +1.21

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: - 14.2% and - 8.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/26 update: Thankfully we did not have to wait very long for JOSB to hit our trigger. Shares rallied to a new relative high with a move to $53.19 intraday. Our trigger to buy calls was hit at $52.75. I would still consider new positions now at current levels. Our target is $59.50.

FYI: The most recent data listed short interest in JOSB at more than 21% of the small 27.3 million-share float. Together the increase the risk of a short squeeze.

- Suggested Positions -

Long the May $55 calls (JOSB1121E55) entry @ $0.70

- or -

Long the June $55 calls (JOSB1118F55) entry @ $1.75

Chart:

Entry on April xxth at $ xx.xx
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume = 510 thousand
Listed on April 25th, 2011


Ross Stores Inc. - ROST - close: 72.50 change: +0.04

Stop Loss: 69.75
Target(s): 77.25, 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
04/26 update: The retail sector underperformed today and ROST was no exception. Shares are trading under resistance near $73.00. I am suggesting we buy calls on a breakout with a trigger to open positions at $73.55. We do not want to hold over the mid May earnings report so I am suggesting we use the May calls, which expire after the 20th.

If triggered our first target is $77.25. Our secondary target is $79.50. FYI: The Point & Figure chart for ROST is bullish with a $97 target.

Trigger @ $73.55

- Suggested Positions -

Buy the May $72.50 calls (ROST1121E72.5) current ask $1.75

Entry on April xxth at $ xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on April 23rd, 2011


Stericycle Inc. - SRCL - close: 93.43 change: -0.81

Stop Loss: 91.45
Target(s): 94.50, 98.50
Current Option Gain/Loss: + 80.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/26 update: Warning! The action in SRCL today looks like a possible short-term top. The stock opened higher at $94.42. That means our exit on the May $90 calls (suggested last night) was at a bid of $5.80 (+132%). Unfortunately the rally failed at $95.71 and SRCL looks headed for the $92 level or lower. Right now our plan is to exit tomorrow at the closing bell to avoid holding over earnings. More conservative traders may want to exit first thing in the morning. I am raising our stop loss to $91.45.

- Suggested Positions -

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

04/26 Prepare to exit tomorrow. New stop loss @ 91.45
04/26 gap higher this morning adjusts our exit from last night to $5.80 (+132%)
04/25 Take Profits Now. Option @ $5.20 bid (+108%)
04/23 New stop loss @ 89.45
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: 52.92 change: +4.88

Stop Loss: 45.95
Target(s): 51.85, 58.50
Current Option Gain/Loss: +68.0%
Time Frame: about 2, maybe 3 weeks
New Positions: see below

Comments:
04/26 update: Whoa! I thought last Thursday and Monday were volatile. Today shares of VRTX dipped to technical support near the 30 and 40-dma before surging to new 52-week highs. The stock hit $54.99 intraday before settling with a +10.1% gain. The gains today were fueled by positive comments on VRTX's Telaprevir treatment for hepatitis C. An FDA advisory panel is still scheduled to review the drug on Thursday but positive press from the FDA today about Telaprevir helping more patients than current therapies helped send shares of VRTX soaring. The FDA is still set to review Merk's rival drug tomorrow. We should expect more volatility tomorrow.

On a positive note today's rally in VRTX did hit our first target at $51.85. Our second and final target is $58.50. I am not suggesting new positions at this time. If VRTX fails to hit our stop or target then we'll plan on exiting ahead of the May 3rd earnings report.

FYI: The option hit $6.30 intraday. The May $50 call had a bid near $3.40 when VRTX hit our first target.

- Very Small Bullish Positions -

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

04/26 1st Target Hit @ 51.85, Option @ $3.40 (+36%)

chart:

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: 65.60 change: -0.28

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: +40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/26 update: Tuesday proved to be a quiet day for WFMI. Shares are hovering sideways. With the market breaking out there is a good chance WFMI can breakout too. If not we're probably looking at another dip toward $64.00. I am not suggesting new positions at current levels. Our final target is $69.00. More conservative traders may want to adjust their stops higher.

- 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: 40.28 change: +0.34

Stop Loss: 42.55
Target(s): 38.15, 35.50
Current Option Gain/Loss: - 0.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/26 update: Bearish plays are going to get tougher to trade with the market's major indices breaking out to new highs. More conservative traders may want to exit this trade immediately. 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 bearish 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

CH Robinson Worldwide Inc. - CHRW - close: 79.24 change: +0.73

Stop Loss: 75.95
Target(s): 79.50
Current Option Gain/Loss: +106.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/26 update: Target achieved. Transports were showing relative strength on Tuesday. Shares of CHRW rallied to $79.71 intraday. Our final target was hit at $79.50. The May $75 call had a bid of $4.65.

- Suggested Positions -

May $75.00 calls (CHRW1121E75) Entry @ $2.25, Exit $4.65 (+106.6%)

04/26 Target hit @ 79.50, Option @ +106.6%
04/25 New stop loss @ 75.95, exit tomorrow at the close
04/23 New stop loss @ 74.95
04/23 Take Profits Now (sell part) option @ $3.80bid (+68.8%)
04/16 new stop loss @ 73.25
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


Panera Bread Co. - PNRA - close: 124.32 change: -2.56

Stop Loss: 123.75
Target(s): ---.--, ---.--
Current Option Gain/Loss: -31.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/26 update: PNRA produced an intraday rally to $128.25 but it wasn't enough to hit our adjusted exit target at $129.00. Earnings are tonight and it was our plan to exit today at the closing bell. Except that shares hit our new stop loss at $123.75 shortly after the spike higher failed this morning.

- Suggested Positions -

May $130 call (PNRA1121E130) Entry @ $3.35, exit near $2.30 (-31.3%)

04/26 stopped out @ 123.75, option @ -31.3%
04/25 New stop loss at $123.75
04/25 Exit tomorrow at the close (or at $129.00)
04/23 Prepare to exit on Tuesday at the close
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%)

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: 108.12 change: +1.31

Stop Loss: 103.45
Target(s): 104.75, 109.00
Current Option Gain/Loss: +115.3%, and +200.0%
2nd Position Gain/Loss: +154.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/26 update: PX continues to show impressive relative strength. Shares hit another new high and closed up +1.2%. It was our plan to exit today a the closing bell to avoid holding over earnings.

- Suggested Positions -

May $100 call (PX1121E100) entry @ $3.90, exit $8.40 (+115.3%)

- or -

May $105 call (PX1121E105) entry @ $1.40, exit $4.20 (+200%)

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

May $100 call (PX1121E100) Entry @ $3.30, exit $8.40 (+154.5%)

04/26 Early Exit. May $100 calls @ +115.3% and +154.5%. May $105 call @ +200%
04/23 new stop loss @ 103.45, prepare to exit on Tuesday
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

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: 97.84 change: +3.31

Stop Loss: 90.45
Target(s): 99.50
Current Option Gain/Loss: + 79.5%
Time Frame: six trading days
New Positions: see below

Comments:
04/26 update: Industrial names were a bright spot today and ROK surged +3.5% to close near its April highs just under the $98 level. Our plan was to exit today at the closing bell to avoid holding over earnings.

(Small Positions) - Suggested Positions -

May $95 calls (ROK1121E95) Entry @ $2.45, exit $4.40 (+79.5%)

04/26 Exit early. Option @ +79.5%
04/23 Prepare to exit on Tuesday

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