Editor's Note:

Our bullish trade on ROST has been closed with shares hitting our final target. Meanwhile the rest of our bullish candidates are definitely seeing some improvement. The put play on PNRA is in jeopardy.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 347.60 change: +0.94

Stop Loss: 339.40
Target(s): 374.00, 395.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/10 update: AAPL spent most of the day drifting sideways again but the stock started to rally late in the session. Now AAPL looks poised to breakout past the $350 level. Currently our plan is to launch bullish positions when AAPL rises to $352.50.

Buy-the-breakout Trigger @ $352.50

- Suggested Positions -

Buy the June $370 calls (AAPL1118F370)

- or -

Buy the July $380 calls (AAPL1116G380)

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


Express Scripts - ESRX - close: 59.75 change: +0.76

Stop Loss: 56.75
Target(s): 64.00, 68.50
Current Option Gain/Loss: + 7.8% & - 3.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/10 update: The rally continues and ESRX is now testing possible resistance at the $60.00 mark. Traders did buy the dip midday near $59.00. I would still consider new positions now or you can wait for a dip near $58.50 instead. Our targets are $64 and $68.50. FYI: The Point & Figure chart for ESRX is bullish with a $72 target.

- Suggested Positions -

Long the June $60 call (ESRX1118F60) Entry @ $1.53

- or -

Long the August $60 call (ESRX1120H60) Entry @ 3.15

Entry on May 10th at $59.21
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on May 9th, 2011


Fastenal Co. - FAST - close: 67.33 change: +0.55

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: +11.3% & - 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: FAST is inching closer and closer to a breakout from its current sideways consolidation. Cautious traders might want to use a higher stop loss near $65.00 instead of our stop at $63.75.

Don't forget that May options expire after May 20th.

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


Google Inc. - GOOG - close: 542.66 change: +4.98

Stop Loss: 529.00
Target(s): 549.00, 558.00
Current Option Gain/Loss: - 8.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/10 update: GOOG was showing a little strength today. Shares closed over the $540 mark and the stock is nearing resistance at its May 2nd high and resistance at the bottom of its gap down in the $545-546 area. Aggressive traders might want to consider buying calls on a breakout past $546 but keep in mind that GOOG appears to have resistance at $550 and could have technical resistance at its 30, 50, and 200-dma all directly overhead. Today's bearish cross over of the 50-dma under the 200-dma is normally a very bearish development (but doesn't mean GOOG won't try and fill the gap first).

I am not suggesting new positions at this time. May options expire after the 20th. Currently our targets are at $549.00 and $558.00.

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

05/09 New stop loss @ 529.00
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: 170.38 change: +1.28

Stop Loss: 165.90
Target(s): 174.00, 179.50
Current Option Gain/Loss: + 44.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/10 update: Tech stocks continue to bounce and IBM's close over $170 is bullish. If you were looking for a new entry point this could work. I am raising our stop loss to $165.90. Our targets are $174.00 and $179.50. FYI: The Point & Figure chart for IBM is bullish with a $208 target.

- Suggested Positions -

Long the June $170 calls (IBM1118F170) Entry @ $2.60

05/10 New stop loss @ 165.90

Entry on May 5th at $167.50
Earnings Date 04/19/11
Average Daily Volume = 4.8 million
Listed on April 27th, 2011


Intuit - INTU - close: 54.89 change: +0.75

Stop Loss: 53.45
Target(s): near 56.00
Current Option Gain/Loss: -45.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/10 update: The rally in INTU is a nice improvement. The move breaks through the short-term bearish trend of lower highs. Yet volume was very, very light and INTU still has resistance near $56.00. More aggressive traders may want to aim higher. I'm suggesting we exit on a bounce near $56.00.

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

05/09 consider an early exit
05/07 consider an early exit
04/30 Adjusted target to $58.75

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


Jos. A Bank Clothiers - JOSB - close: 54.63 change: +1.79

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: + 14.2% and +22.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/10 update: JOSB has finally broken out past its recent highs. Today's +3.3% gain leaves JOSB at a new all-time high. The stock has above average short interest so the rally could accelerate. If you're looking for a new entry point I'd wait for a dip near the $53.50 area. Don't forget that May options expire after the 20th.

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


NetApp, Inc. - NTAP - close: 54.21 change: +1.04

Stop Loss: 50.75
Target(s): 58.00
Current Option Gain/Loss: + 8.9%
Time Frame: about 3 weeks
New Positions: see below

Comments:
05/10 update: NTAP extended its gains with a +1.9% advance and a new two-month high. The next spot for potential resistance is the $55.00 level. If you're looking for an entry point consider waiting for a dip near $53.00. Our target to exit is the $58.00 mark.

NOTE: We do not want to hold over the late May earnings report. The date is still unconfirmed. This gives is about two or three weeks as our time frame.

- Suggested Positions -

Long the June $55 calls (NTAP1118F55) Entry @ $1.90

Entry on May 9th at $ xx.xx
Earnings Date 05/25/11 (unconfirmed)
Average Daily Volume = 5.8 million
Listed on May 7th, 2011


O'Reilly Automotive - ORLY - close: 60.26 change: +0.60

Stop Loss: 57.75
Target(s): 62.75, 67.25
Current Option Gain/Loss: -28.5% & + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/10 update: It looks like traders are still buying the dips near ORLY's rising 10-dma. The close over $60.00 is a bullish development. Unfortunately volume has been pretty light this week. I remain cautious here. The plan was to keep our position size small to limit our risk.

- Suggested (Small) Positions -

Long the May $60 calls (ORLY1121E60) Entry @ $1.05

- or -

Long the June $60 calls (ORLY1118F60) Entry @ $1.65

Entry on May 4th at $60.15
Earnings Date 04/27/11
Average Daily Volume = 1.1 million
Listed on April 30th, 2011


Powershares QQQ ETF - QQQ - close: 59.19 change: +0.50

Stop Loss: 56.45
Target(s): 64.00
Current Option Gain/Loss: +20.3% & +13.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
05/10 update: The NASDAQ-100 index is inching closer toward its recent highs. A breakout would produce new multi-year highs for the $NDX and the QQQ. There is no change from my prior comments. I would still consider new positions now or you can wait for a dip (which may or may not show up). Our upside target is $64.00. The Qs don't move very fast so we'll have to be patient.

- Suggested Positions -

Long the June $60 calls (QQQ1118F60) Entry @ 0.59

- or -

Long the July $60 calls (QQQ1116G60) Entry @ 1.00

Entry on May 4th at $58.15
Earnings Date --/--/--
Average Daily Volume = 50 million
Listed on April 30th, 2011


ProShares Ultra(long) S&P 500 - SSO - close: 55.85 change: +0.95

Stop Loss: 52.75
Target(s): 59.00
Current Option Gain/Loss: +15.6% and + 1.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
05/10 update: The market's rebound continues and the SSO added +1.7%. My only concern right now is the lack of volume behind this rise compared to the elevated volume on last week's decline. The SSO is twice as volatile as the market so we want to keep our position size small. Our multi-week target is the $59.00 level.

Small Positions Only - Suggested Positions -

Long the June $56 call (SSO1118F56) Entry @ $1.60

- or -

Long the September $60 call (SSO1117I60) Entry @ $2.00

Entry on May 5th at $54.39
Earnings Date --/--/--
Average Daily Volume = 11.3 million
Listed on May 4th, 2011


Union Pacific - UNP - close: 104.49 change: +2.02

Stop Loss: 98.95
Target(s): 109.00, 114.00
Current Option Gain/Loss: +49.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/10 update: Railroad stocks continue to shine and UNP added +1.9%. The stock closed above recent resistance at $104.00 and set a new all-time high. I'd wait for a dip near the $102 area before considering new positions. Our targets are $109.00 and $114.00. FYI: The Point & Figure chart for UNP is bullish with a $116 target.

- Suggested Positions -

Long the June $105 call (UNP1118F105) Entry @ $1.62

Entry on May 9th at $102.19
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on May 7th, 2011


United Technologies Corp. - UTX - close: 89.81 change: +0.29

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:
05/10 update: Hmm... what are we going to do with UTX. Shares are hovering near resistance at $90.00. Why didn't the stock breakout higher given the bullish tape today? I didn't see any significant news for UTX today. I'm going to adjust our entry point strategy. We'll keep our buy-the-dip entry point at $86.50 but we'll move the stop loss up to $84.75. Plus, we're adding a breakout trigger to buy calls just in case UTX does not pull back. Our alternative entry point will be $90.75 and we'll use a stop loss at $87.75. However, if UTX hits $90.75 we want to keep our position size very small given this aggressive entry point. If triggered at $90.75 our targets are $94.75 and $98.50.

Buy-the-dip Trigger @ $86.50
-OR-
breakout @ $90.75 and use small positions to limit our risk!

- 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


SPDR Oil & Gas ETF - XOP - close: 60.48 change: +0.68

Stop Loss: 55.99
Target(s): 61.00, 65.00
Current Option Gain/Loss: +60.0% & +24.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/10 update: The XOP's close over the $60.00 mark is bullish but shares are nearing potential resistance with a virtual cloud of moving averages overhead in the $61-62 area. I would not launch new positions at these levels. Wait for another dip or bounce near $58.00.

Our first target is $61.00. Our second, more aggressive target is $65.00 but the XOP will have to climb through a cloud over overhead resistance to get there.

I would keep our position size small to limit our risk.

- Suggested Positions - (Small positions)

Long the May $58.00 call (XOP1121E58) Entry @ $1.70

- or -

Long the June $60.00 call (XOP1118F60) Entry @ $1.85

Entry on May 9th at $58.32
Earnings Date --/--/--
Average Daily Volume = 4.8 million
Listed on May 7th, 2011


PUT Play Updates

Panera Bread Co. - PNRA - close: 121.33 change: +2.49

Stop Loss: 123.25
Target(s): 110.50, 102.50
Current Option Gain/Loss: -43.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/10 update: Caution! The action today is what I have been worried about. The market's widespread rally is fueling buying interest in PNRA. Shares rallied +2.0% today and the stock is testing resistance in the $122 area. I am not suggesting new bearish positions at this time. More conservative traders may want to abandon ship.

Prior Comments:
We knew this was an aggressive, higher-risk trade and wanted to keep our position size small to limit our risk. Our targets are the 100-dma (currently near $112.00, we'll take profits at $112.50) and the $102.50 level.

Suggested Positions

Long the June $110 PUTS (PNRA1118R110) Entry @ $1.60

Entry on May 4th at $119.00
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 647 thousand
Listed on May 3rd, 2011


CLOSED BULLISH PLAYS

Ross Stores Inc. - ROST - close: 79.76 change: +1.18

Stop Loss: 74.75
Target(s): 77.25, 79.90
Current Option Gain/Loss: +266.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/10 update: Target achieved. We've been waiting for ROST to hit our final target at $79.90. ROST hit our target after 11:00 a.m. and we got another chance to exit later in the day with a rally past $80. The bid on the May $72.50 call was trading near $7.35.

- Suggested Positions -

May $72.50 calls (ROST1121E72.5) Entry @ $2.25, Exit @ 7.35 (+226.6%)

05/10 Final target hit @ 79.90. Option @ $7.35 (+226.6%)
05/05 New stop loss @ 74.75. Adjusted 2nd target to $79.90 from $79.50.
05/05 1st Target Hit @ 77.25. Option @ $5.00 (+122.2%)

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