Editor's Note:

The stock market rally took a rest on Thursday. Gold and silver continued to climb while oil ticked lower. The major indices managed to eke out gains by the closing bell.

ROST was showing relative strength and hit our trigger to buy calls. Meanwhile WFMI hit our stop as investors overreacted to earnings news from Safeway (SWY).

-James

Current Portfolio:


CALL Play Updates

Deere & Co - DE - close: 95.91 change: -0.85

Stop Loss: 92.49
Target(s): 99.70
Current Option Gain/Loss: +10.5%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/28 update: It was a quiet day for DE with shares churning sideways. Investors could be waiting for the earnings report from rival Caterpillar (CAT) due out tomorrow morning. CAT's results could have a big influence on shares of DE and I wouldn't be surprised to see DE gap open one way or the other tomorrow. 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.

- 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: 67.10 change: -0.17

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: +13.6% & +13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/28 update: FAST hit a new two-week high this morning and then faded lower. I don't see any changes from my prior comments. 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: 64.90 change: -0.10

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:
04/28 update: We only have one week left for this trade. FO is due to report earnings on May 5th. I would still consider buying dips near the $64.00 level but readers might want to ratchet up their stops a little bit. FYI: The move past $64.00 has created 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: 95.87 change: +0.35

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:
04/28 update: FOSL pretty much erased yesterday's minor loss. Shares are still moving sideways. I don't see any changes from my prior comments. 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: 149.82 change: +0.62

Stop Loss: 141.90
Target(s): ---.--, 154.50
Current Option Gain/Loss: +190.7%, and +163.1%
2nd Option Position Gain/loss: +261.0% and +218.1%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
04/28 update: Gold surged to a new record high of $1,539 an ounce intraday. Shares of the GLD gold ETF tagged round-number resistance at the $150.00 mark before settling lower with a +0.4% gain. I am not suggesting new bullish positions with GLD nearing the $150 mark. Our final target remains the $154.50 level.

- 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: 537.97 change: +0.21

Stop Loss: 518.75
Target(s): 558.00
Current Option Gain/Loss: +16.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/28 update: With the market moving sideways and the NASDAQ flirting with a decline most of the session I'm not surprised to see GOOG moving sideways as well. Shares are hovering under the $540 level. 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


International Business Machines - IBM - close: 170.78 change: +0.41

Stop Loss: 164.75
Target(s): 174.00, 179.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see Trigger

Comments:
04/28 update: IBM is still floating higher and tagged a new all-time high at $171.38 this morning. There is no change from my prior comments. Aggressive traders may want to buy calls now. I would prefer to wait and buy a dip.

I am suggesting we buy calls on a dip at $167.50. If triggered we'll use a stop loss at $164.75. Our targets are $174.00 and $179.50. FYI: The Point & Figure chart for IBM is bullish with a $208 target.

Buy-the-Dip Trigger @ 167.50

- Suggested Positions -

Buy the June $170 calls (IBM1118F170)

Entry on April xxth at $ xx.xx
Earnings Date 04/19/11
Average Daily Volume = 4.8 million
Listed on April 27th, 2011


4 Intuit - INTU - close: 55.60 change: -0.14

Stop Loss: 53.45
Target(s): 57.50, 59.75
Current Option Gain/Loss: -20.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/28 update: INTU is still consolidating sideways in the $54-56 zone. I am not suggesting new positions at this time.

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: 52.69 change: -0.38

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: - 35.7% and -17.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/28 update: JOSB has spent the last two and a half days consolidating sideways in a narrow range. The stock is trading near all-time highs but honestly I was expecting a bit more strength. I would still consider new positions in the $52-53 zone. 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: 74.02 change: +1.06

Stop Loss: 69.75
Target(s): 77.25, 79.50
Current Option Gain/Loss: + 11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/28 update: ROST has finally broken out to new highs and the stock hit our trigger to buy calls at $73.55 this morning. If you missed the entry point consider waiting for a dip into the $73.50-73.00 zone. 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.

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.

- Suggested Positions -

Long the May $72.50 calls (ROST1121E72.5) Entry @ $2.25

chart:

Entry on April 28th at $73.55
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on April 23rd, 2011


United Technologies Corp. - UTX - close: 89.01 change: +1.15

Stop Loss: 83.25
Target(s): 89.50, 94.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
04/28 update: UTX continues to rally and added another +1.3%. The stock is nearing what will likely be round-number, psychological resistance at $90.00. We should expect a pull back soon. Broken resistance near $86.00 should be new support. I am suggesting a trigger to buy at $86.25. If triggered we'll use a stop loss at $83.25. Our targets are $89.50 and $94.00.

Buy-the-dip Trigger @ $86.25

- Suggested Positions -

Buy the June $90 calls (UTX1118F90)

Entry on April xxth at $ xx.xx
Earnings Date 04/20/11
Average Daily Volume = 3.7 million
Listed on April 27th, 2011


Vertex Pharmaceuticals - VRTX - close: 55.54 change: +0.00

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:
04/28 update: Well the action in VRTX today was a bit unexpected and uncommonly quiet. Prior to the opening bell the NASDAQ halted trading in shares of VRTX due to the news out today regarding the FDA panel. The good news for investors is that the FDA advisory panel voted 18-0 in favor of approving VRTX's Telaprevir treatment for hepatitis C. Now the question is, since this approval was expected, is the news already baked into the stock? If so, then VRTX could see a sell-the-news reaction on Friday morning. If not then VRTX could rocket even higher. There was a little bit of after hours trading tonight and VRTX was still trading near $56. Thus if I had to bet on a direction tomorrow I would look for a little profit taking. 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.

- 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


PUT Play Updates

Apollo Group Inc. - APOL - close: 40.28 change: -0.31

Stop Loss: 42.55
Target(s): 38.15, 35.50
Current Option Gain/Loss: -16.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/28 update: APOL is still drifting sideways. The rally this morning failed at the $41 level. 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

Whole Foods Market Inc. - WFMI - close: 62.44 change: -2.69

Stop Loss: 61.70
Target(s): 64.75, 69.00
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/28 update: Ouch! The action in WFMI today was VERY disappointing. The stock sold off hard and was down as much as -6% thanks to investor reaction to Safeway's (SWY) earnings results out this morning. While the two companies are in the same business WFMI markets to a different clientele. I'm surprised SWY's news had such an affect on this stock. WFMI broke down under support near $62 and the 50-dma and hit our stop loss at $61.70.

- Suggested Positions -

May $65 calls (WFMI1121E65) Entry @ $2.25, exit near $1.50 (-33.3%)

04/28/11 Stopped out @ 61.70, Option @ $1.50 (-33.3%)
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

chart:

Entry on March 21 at $61.55
Earnings Date 05/04/11 (confirmed)
Average Daily Volume = 1.9 million
Listed on March 19th, 2010