Editor's Note:

Ben Bernanke got a passing grade from Wall Street after his press conference today. The market's rally accelerated higher late this afternoon. Gold surged to new highs. Meanwhile we're closing our SRCL play ahead of earnings.

-James

Current Portfolio:


CALL Play Updates

Deere & Co - DE - close: 96.76 change: -0.24

Stop Loss: 92.49
Target(s): 99.70
Current Option Gain/Loss: +40.9%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/27 update: The action in DE was very disappointing today. Shares sold off sharply this morning but traders bought the dip near $95.00. DE almost made it back to breakeven on the session while the rest of the market was in rally mode. I couldn't find any headlines to account for the relative weakness this morning. However, given the bounce, I would use this rebound as a new bullish entry point. More conservative traders will want to consider a higher stop loss. While more aggressive traders may want to aim higher than our target at $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: 67.27 change: +1.16

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: +22.7% & +20.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/27 update: FAST is off to a good start. Shares rallied +1.75% to close at new two-week highs. More conservative traders might want to raise their stops. 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

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: 65.00 change: +0.84

Stop Loss: 61.75
Target(s): 67.50, 69.75
Current Option Gain/Loss: + 10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/27 update: Traders were buying the dips near $64 this morning and the stock eventually rallied to a new relative high. Our first target is $67.50 but we plan to exit ahead of the May 5th earnings date anyway.

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

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: 95.52 change: -0.37

Stop Loss: 91.95
Target(s): 99.75, 104.75
Current Option Gain/Loss: -15.0%, and - 9.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/27 update: I could not find any news to explain the relative weakness in FOSL this morning. Thankfully the stock reversed midday and pared its losses. The close back above the $95.00 level looks like another entry point to begin bullish positions. More conservative traders might want to adjust their stop loss higher.

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: 149.20 change: +2.82

Stop Loss: 141.90
Target(s): ---.--, 154.50
Current Option Gain/Loss: +166.3%, and +144.3%
2nd Option Position Gain/loss: +231.0% and +195.4%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/27 update: Hmm... if I had know that gold was going to rally to new highs following Ben Bernanke's press conference then I would have waited on taking profits. Our original plan was to take profits at $149.00 but we decided to lock in gains early on Monday's move. I am not suggesting new bullish positions with GLD nearing the $150 mark. Our final target remains the $154.50 level. We will raise our stop loss to $141.90. More conservative traders might want a stop closer to $144 instead.

- 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

04/27 New stop loss @ 141.90
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: 537.76 change: +4.94

Stop Loss: 518.75
Target(s): 558.00
Current Option Gain/Loss: +46.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/27 update: GOOG is still inching higher and posted a +0.9% gain. Don't be surprised to see the bottom of the gap down near $547 act as overhead resistance. 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


4 Intuit - INTU - close: 55.74 change: +0.75

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: -12.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/27 update: Traders appear to be buying the dip in INTU near its rising 10-dma. Aggressive traders could use this bounce as a new entry point.

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: 53.07 change: +0.29

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: - 7.1% and - 2.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/27 update: It was a relatively quiet day for JOSB. Traders bought the dip near $52.50, which was prior resistance and now new support. 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

Entry on April 26th at $52.75
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume = 510 thousand
Listed on April 25th, 2011


Ross Stores Inc. - ROST - close: 72.96 change: +0.46

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:
04/27 update: ROST is getting closer and closer to a bullish breakout. Shares could hit our entry point to buy calls at $73.55 tomorrow. 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


Vertex Pharmaceuticals - VRTX - close: 55.54 change: +2.62

Stop Loss: 49.90
Target(s): 51.85, 58.50
Current Option Gain/Loss: +144.0%
Time Frame: about 2, maybe 3 weeks
New Positions: see below

Comments:
04/27 update: It looks like the race is on as the FDA advisory panel approves Merck's rival hepatitis C drug. That didn't stop the rally in shares of VRTX, which added another +4.9% today. The FDA formally reviews VRTX's treatment tomorrow. I am raising our stop loss to $49.90 but more conservative traders may want to use a stop loss closer to the $52.50 area instead. Our final target for VRTX is the $58.50 level. I am not suggesting new positions at this time.

FYI: More conservative traders will want to consider taking profits now just in case there is some negative surprise with the FDA panel tomorrow.

If VRTX fails to hit our stop or target then we'll plan on exiting ahead of the May 3rd earnings report.

- Very Small Bullish Positions -

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

04/27 New stop loss @ 49.90
04/26 1st Target Hit @ 51.85, Option @ $3.40 (+36%)

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: 65.13 change: -0.47

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: +30.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/27 update: WFMI is still consolidating and shares dipped to $64.69 today. Look for technical support at the 30-dma near $64.00. Nimble traders could use a bounce from this level as a new entry point. 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: 40.59 change: +0.31

Stop Loss: 42.55
Target(s): 38.15, 35.50
Current Option Gain/Loss: -22.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/27 update: APOL is still trying to bounce and traders bought the dip near $40.00 today. There is no change from my prior comments. 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

Stericycle Inc. - SRCL - close: 94.29 change: +0.86

Stop Loss: 91.45
Target(s): 94.50, 98.50
Current Option Gain/Loss: + 96.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
04/27 update: There was no follow through on yesterday's failed rally pattern. That's good news. Traders bought the dip on above average volume today. While the trend is up our plan was to exit tonight at the closing bell to avoid earnings.

- Suggested Positions -

May $90 calls (SRCL1121E90) Entry @ $2.50, Exit 4.90 (+96%)

04/27 Exit early. Option @ $4.90 (+96%)
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

chart:

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