Editor's Note:

Stocks recovered from their intraday lows but still posted mild declines. Meanwhile precious metals were seeing profit taking. Our SLV put play hit our first profit target. Our GLD call play was stopped out for a gain. The APKT call play was stopped out.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 348.20 change: +1.92

Stop Loss: 334.40
Target(s): 359.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
05/03 update: For the third time in four trading days traders bought the dip in AAPL in the $345-346 zone. More aggressive traders might want to reconsider and buy dips near $346 instead. I am suggesting we buy calls on a dip at $341.00. Our upside target is $359.00. More aggressive traders could aim higher. A breakout past the February highs near $365 might portend a run toward the $400 level.

Buy-the-dip Trigger @ $341.00

- Suggested Positions -

Buy the June $350 calls (AAPL1118F350)

Entry on May xxth at $ xx.xx
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume = 16.6 million
Listed on May 2nd, 2011


Deere & Co - DE - close: 94.98 change: -2.41

Stop Loss: 92.49
Target(s): 99.70, $104.00
Current Option Gain/Loss: -16.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/03 update: We have been expecting a dip near $95.00 in DE so this isn't a surprise. However, seeing DE close under the $95.00 mark and close near its lows for the day does not bode well for the bulls. I would wait for a bounce before considering new positions. We will not hold positions over the mid May earnings report.

- Suggested Positions -

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

04/30 Adjusted targets to $99.70 and $104.00.

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: 66.25 change: -0.64

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: -15.9% & -26.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/03 update: We have been looking for a dip into the $66-65 zone as a new entry point. Today shares hit $65.74. Yet the dip may not be over yet. Readers may want to wait and see how FAST performs tomorrow.

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: 64.51 change: -0.02

Stop Loss: 63.45
Target(s): 67.50, 69.75
Current Option Gain/Loss: - 15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03 update: Tuesday was a quiet session for FO and shares rebounded off support near $64.00. This looks like a new entry point. However, tomorrow (Wednesday) is our last day and we plan to exit on Wednesday at the closing bell to avoid holding over earnings on Thursday. Given our time frame I am raising our stop loss to $63.45.

(Small Positions) - Suggested Positions -

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

05/03 Plan on exiting tomorrow at the closing bell.
05/03 New stop loss @ 63.45

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


Google Inc. - GOOG - close: 533.89 change: -4.67

Stop Loss: 518.75
Target(s): 549.00, 558.00
Current Option Gain/Loss: -10.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/03 update: GOOG is down more than ten points in the last two days. Tuesday's drop confirms yesterday's bearish reversal. Readers may want to exit immediately. I'm not ready to give up just yet. GOOG seemed to find some support near $530 today. I am not suggesting new positions at this time.

Currently our targets are at $549.00 and $558.00. FYI: The high today was $545.73.

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

04/30 Adjusted exit strategy. First target at $549.00. Final target at $558.00.

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: 172.87 change: +0.72

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:
05/03 update: There is no change from my prior comments on IBM. The stock continues to march higher, regardless of what the rest of the market is doing. Eventually big blue will see some profit taking.

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


Intuit - INTU - close: 55.23 change: +0.11

Stop Loss: 53.45
Target(s): 58.75
Current Option Gain/Loss: -31.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/03 update: Traders were buying the dip in INTU late this afternoon but I remain cautious. I'd prefer to see a close over $56.00 before considering new positions. We do not want to hold over the mid May earnings date.

I would keep our position size small to limit our risk (1/2 or less than your normal trade size).

- Suggested Positions -

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

04/30 Adjusted target to $58.75

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: 51.06 change: +0.24

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: - 85.7% and -48.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/03 update: JOSB dipped toward its 30-dma and bounced. This dip could be used as a new bullish entry point but I would keep position sizes small to limit risk.

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


O'Reilly Automotive - ORLY - close: 59.67 change: +0.12

Stop Loss: 57.75
Target(s): 62.75, 67.25
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see Trigger

Comments:
05/03 update: There is no change from my prior comments on ORLY. The stock is still consolidating sideways under resistance at the $60.00 mark. Our plan is to buy calls at $60.15. If triggered our targets are $62.75 and $67.25. The market is a little overbought here so I would keep our position size small.

Trigger @ $60.15

- Suggested Positions -

Buy the May $60 calls (ORLY1121E60)

- or -

Buy the June $60 calls (ORLY1118F60)

Entry on May xxth at $ xx.xx
Earnings Date 04/27/11
Average Daily Volume = 1.1 million
Listed on April 30th, 2011


Powershares QQQ ETF - QQQ - close: 58.69 change: -0.28

Stop Loss: 56.45
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see Trigger

Comments:
05/03 update: The QQQ dipped to $58.33 intraday before paring its losses. I'm not convinced the pull back is over. Our plan is unchanged. We have a buy-the-dip trigger at $58.15. More conservative traders could wait for a dip toward the 30 or 50-dma instead. If we are triggered at $58.15 we'll use a stop loss at $56.45. The Qs don't move very fast so we'll have to be patient.

buy-the-dip Trigger @ $58.15

- Suggested Positions -

Buy the June $60 calls (QQQ1118F60)

- or -

Buy the July $60 calls (QQQ1116G60)

Entry on May xxth at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 50 million
Listed on April 30th, 2011


Ross Stores Inc. - ROST - close: 73.35 change: -0.05

Stop Loss: 69.75
Target(s): 77.25, 79.50
Current Option Gain/Loss: - 6.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03 update: Yesterday I suggested readers buy calls on a dip near $72.00. ROST didn't quite make it. The stock slipped to $72.46 before rebounding higher this afternoon. While the late day bounce looks like a tempting entry point I am not yet convinced the market's pull back is over. I'd still wait for a dip near $72.00 or even the $71 area. We do not want to hold over the mid May earnings report.

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

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: 89.85 change: -0.15

Stop Loss: 83.49
Target(s): 89.50, 94.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/03 update: There is no change from my prior comments on UTX. The $90 level looks like potential resistance. We want to buy calls on a dip at $86.50. If triggered at $86.50 we'll use a stop loss at $83.49. Our targets are $89.50 and $94.00.

Buy-the-dip Trigger @ $86.50

- 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


PUT Play Updates

Apollo Group Inc. - APOL - close: 40.59 change: -0.17

Stop Loss: 42.11
Target(s): 38.15, 35.50
Current Option Gain/Loss: -22.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/03 update: APOL is still consolidating sideways and traders bought the dip again near $40.00. The stock has held support near $40.00 for over a week now. We may want to consider an early exit right here. It looks like APOL is setting up for a rise toward $42.00, which should be overhead resistance bolstered by the 200-dma. I am not suggesting new bearish positions at this time. I am lowering our stop loss to $42.11.

- Suggested Positions -

Long the May $40.00 puts (APOL1121Q40) Entry @ $1.24

05/03 new stop loss @ 42.11
05/03 Readers may want to exit early here.
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


iShares Silver Trust - SLV - close: 40.58 change: -2.25

Stop Loss: n/a
Target(s): 40.15 & 36.25
Current Option Gain/Loss: +90.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/03 update: Target achieved. Silver continued to sell-off sharply thanks to news that the CME exchange was raising margin requirements on silver positions again. Silver has seen a huge two-day sell-off. The SLV dipped to $39.62 this afternoon. Our first target to take profits was hit at $40.15. The July $40 puts were trading with a bid at $3.70 when our target was hit.

Our second and final target is the $36.25 level. I am not suggesting new positions at this time. The SLV could see an oversold bounce soon.

(Small Positions) Suggested Positions -

Long the July $40.00 PUT (SLV1116S40) Entry @ $2.05

05/03 1st target hit @ 40.15, Option @ $3.70 (+80.4%)
05/02 Silver dropped and the SLV gapped open lower at $44.10.

chart:

Entry on May 2 at $44.10
Earnings Date --/--/--
Average Daily Volume = 79 million
Listed on April 30th, 2011


CLOSED BULLISH PLAYS

Acme Packet Inc. - APKT - close: 74.67 change: -3.51

Stop Loss: 74.45
Target(s): 89.00, 97.50
Current Option Gain/Loss: -82.4% and -62.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/03 update: At its low today of $73.21 shares of APKT were down more than -10% in the last two sessions. There doesn't appear to be anything specific behind the sharp sell-off. I cautioned readers that this was a volatile stock but these big declines on no news are frustrating. Bigger picture the trend of higher lows is still in effect but if the stock closes the week near these levels it will have produced a huge bearish reversal pattern on the weekly chart.

Our stop loss at $74.45 was hit this afternoon closing our trade. The plan was to use small positions to limit our risk.

- Suggested Positions - (SMALL POSITIONS)

May $85 call (APKT1121E85) Entry @ $2.28, Exit @ 0.40 (-82.4%)

- or -

June $85 call (APKT1118F85) Entry @ $4.49, Exit @ 1.70 (-62.1%)

05/03 Stopped out @ 74.45, Options @ -82.4% & -62.1%

chart:

Entry on April 29th at $81.20
Earnings Date 04/26/11
Average Daily Volume = 2.5 million
Listed on April 28th, 2011


SPDR Gold ETF - GLD - close: 149.88 change: -0.53

Stop Loss: 149.75
Target(s): ---.--, 154.50
Current Option Gain/Loss: +196.1%, and +166.9%
2nd Option Position Gain/loss: +268.2% and +222.7%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
05/03 update: Gold and silver continued to see profit taking this week after the prior week's big gains. The GLD dipped to $148.85 this afternoon. Our new stop loss was hit at $149.75 closing this trade.

- Suggested Positions -

May $145 call (GLD1121E145) Entry @ $1.84, Exit 5.45 (+196.1%)

- or -

June $150 call (GLD1118F150) Entry @ $1.33, Exit 3.55 (+166.9%)

- Second Entry Point, April 12th, Entry April 13th -

May $145 call (GLD1121E145) Entry @ $1.48, Exit 5.45 (+268.2%)

- or -

June $150 call (GLD1118F150) Entry @ $1.10, Exit 3.55 (+222.7%)

05/03 Stopped out @ 149.75. 1st position options @ +196.1% & +166.9%, 2nd position options @ +268.2% & +222.7%
04/30 New stop loss @ 149.75, consider taking profits now!
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

chart:

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