Editor's Note:

The market's major indices recovered from their morning lows to post gains on Thursday. It would seem that traders are still in a buy-the-dip mode. We are closing our INTU play early.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 346.57 change: -0.66

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:
05/12 update: AAPL slipped under support near $345 with an intraday dip to $342.27 before paring its losses. This looks like a bounce from technical support at its 40 and 100-dma. More aggressive and nimble traders may want to consider buying calls now on this bounce. The newsletter will stick to our plan and wait for a breakout higher with a trigger to launch positions at $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: 59.79 change: +0.67

Stop Loss: 56.75
Target(s): 64.00, 68.50
Current Option Gain/Loss: + 5.2% & - 3.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12 update: ESRX erased yesterday's losses with a +1.1% bounce back toward round-number resistance at $60.00. If the market is positive tomorrow there is a good chance ESRX can breakout past this level. 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: 67.04 change: +0.66

Stop Loss: 63.75
Target(s): 69.50, 74.00
Current Option Gain/Loss: - 2.2% & -13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/12 update: There was no follow through on yesterday's declines. FAST is once again bouncing from technical support near its 30-dma. Shares are nearing resistance at the $67.50 level. Readers may also want to consider a stop loss closer to the $65 level 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


FactSet Research Systems - FDS - close: 111.29 change: -0.47

Stop Loss: 106.40
Target(s): 114.75, 119.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/12 update: FDS tagged a new high early this afternoon above $112 and then retreated. I suspect the stock is ready for a pull back. We have a trigger to buy calls on a dip at $110.25. More conservative traders may want to consider using a trigger closer to the $109 area instead. If triggered our targets are $114.75 and $119.50.

Please note that this is a higher-risk, more aggressive trade because FDS doesn't have a lot of option volume and the option spreads are a little too wide. Keep your position small to limit our risk.

Trigger @ $110.25 (small positions only!)

- Suggested Positions -

Buy the June $115 call (FDS1118F115) current ask $2.05

Entry on May xxth at $ xx.xx
Earnings Date 06/15/11 (unconfirmed)
Average Daily Volume = 211 thousand
Listed on May 10th, 2011


Google Inc. - GOOG - close: 535.05 change: -0.40

Stop Loss: 529.00
Target(s): 549.00, 558.00
Current Option Gain/Loss: -66.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/12 update: GOOG saw another dip toward support near $530 this morning. This was the fifth bounce from support in this area in the last two weeks. Aggressive traders willing to handle the risk could use today's intraday bounce as a new entry point but you may want to buy June calls. Our May calls are set to expire in six trading days.

I am not suggesting new positions at this time. Currently our targets are at $549.00 and $558.00.

Prior Comments:
Keep positions small. This is a very aggressive, higher-risk trade. May options expire after the 20th.

(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: 172.24 change: +2.74

Stop Loss: 165.90
Target(s): 174.75, 179.50
Current Option Gain/Loss: + 84.6%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/12 update: Big Blue was showing some relative strength today with a +1.6% gain. The stock is nearing its all-time highs set in early May near the $173.50 area. Please note that I am adjusting our first profit target from $174.00 to $174.75. Our second and final target remains $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

05/12 Adjusted first target to $174.75
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


Illumina Inc. - ILMN - close: 75.23 change: +0.49

Stop Loss: 69.90
Target(s): 79.50, 84.00
Current Option Gain/Loss: + 1.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12 update: ILMN produced a bounce off its morning lows near $73.64. I would not be surprised to see new highs set tomorrow. Our targets are $79.50 and $84.00. The Point & Figure chart for ILMN is bullish with a $90 target.

FYI: The most recent data listed short interest in ILMN at 22% of the 121 million-share float.

- Suggested Positions -

Long the June $75 call (ILMN1118F75) Entry @ $2.75

Entry on May 11th at $74.50
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 10th, 2011


Jos. A Bank Clothiers - JOSB - close: 55.50 change: +0.88

Stop Loss: 49.95
Target(s): 59.50
Current Option Gain/Loss: + 64.2% and +51.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12 update: JOSB is performing well. Shares added +1.6% for another new all-time high. I am raising our stop loss to $51.75. 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. The risk of a short squeeze is pretty high.

- 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: 53.99 change: +0.02

Stop Loss: 50.75
Target(s): 58.00
Current Option Gain/Loss: - 1.0%
Time Frame: about 3 weeks
New Positions: see below

Comments:
05/12 update: The early morning rally in NTAP failed and shares settled almost unchanged on the day. I would prefer to launch new positions on a dip or a bounce near the $53.00 level and its 100-dma. 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: 61.17 change: +0.40

Stop Loss: 57.75
Target(s): 62.75, 67.25
Current Option Gain/Loss: +28.5% & +27.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12 update: ORLY displayed some strength today. The stock actually gapped open lower at $59.56 but traders immediately bought the dip and ORLY closed at new three-month highs. Volume is still very light on this advance higher. 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: 59.11 change: +0.36

Stop Loss: 56.99
Target(s): 64.00
Current Option Gain/Loss: +11.8% & + 7.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
05/12 update: The QQQs bounced from their 20-dma this morning. This ETF is now testing overhead resistance in the $59.25 area. A breakout here could launch a new leg higher. The inverse head-and-shoulders pattern is suggesting an upside target near $62. At this point readers may want to wait for the rally past $59.35 before initiating new positions. I am raising our stop loss to $56.99. 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

05/12 New stop loss at $56.99

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: 55.18 change: +0.48

Stop Loss: 52.75
Target(s): 59.00
Current Option Gain/Loss: - 8.1% and - 7.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
05/12 update: Traders are still in a buy-the-dip mode and SSO rallied +0.8% on the day. I would use this bounce as a new entry point. 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


Tractor Supply Co. - TSCO - close: 62.91 change: +1.80

Stop Loss: 56.99
Target(s): 69.00
Current Option Gain/Loss: +35.0% & +62.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12 update: TSCO rebounded sharply off another test of the $60.00 level. The stock outperformed with a +2.9% gain.

There is resistance at $65.00 but I'm setting our profit target at $69.00. More conservative traders may want to take profits at $64.80 and then sell the rest at $69.00.

- Suggested Positions -

Long the June $65 call (TSCO1118F65) Entry @ $1.00

- or -

Long the July $65 call (TSCO1116G65) Entry @ $1.20

Entry on May 11th at $61.62
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 958 thousand
Listed on May 10th, 2011


Union Pacific - UNP - close: 102.43 change: -0.03

Stop Loss: 98.95
Target(s): 109.00, 114.00
Current Option Gain/Loss: - 3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12 update: UNP recovered from its intraday lows near $101 and closed virtually unchanged on the session. Yesterday I suggested waiting for a dip near $101-100 as a new entry point. If you're still looking for an entry I'd buy calls here. 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: 89.57 change: +0.05

Stop Loss: 83.49
Target(s): 89.50, 94.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/12 update: UTX is still consolidating sideways. There is no change from my prior comments.

We have two different triggers to open positions here. One is a buy-the-dip entry point at $86.50 with a stop loss at $84.75. Another one is a breakout entry point at $90.75 but with very small positions and a stop loss at $87.75.

If UTX hits $86.50 first then our targets are $89.50 and $94.75. If UTX hits $90.75 first then 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


Wynn Resorts Ltd. - WYNN - close: 146.83 change: -1.80

Stop Loss: 146.40
Target(s): 159.75, 169.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Comments:
05/12 update: It turned out to be a quiet day for WYNN as shares drifted sideways and underperformed the market's major averages. If WYNN can breakout to a new multiyear high it could spark some short covering and a run at its all-time highs.

This stock can be somewhat volatile so I am suggesting we keep our position sizes small to limit our risk. We'll use a trigger to buy calls at $152.00. If triggered at $152.00 our targets are $159.75 and $169.00. The $160 and $170 levels look like potential resistance.

Trigger @ $152.00

- Suggested Positions -

Buy the June $160 calls (WYNN1118F160) current ask $2.15

Entry on May xxth at $ xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on May 11th, 2011


CLOSED BULLISH PLAYS

Intuit - INTU - close: 55.89 change: +1.45

Stop Loss: 53.45
Target(s): near 56.00
Current Option Gain/Loss: -20.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12 update: We are closing the INTU call play. I've been suggesting an early exit on a bounce near resistance at $56.00. More aggressive traders may want to reconsider and keep this trade open. INTU certainly looks like it's ready to finally breakout from its three-week consolidation and a make a run towards the $60 area. I would not hold over the May 19th earnings report. Our plan was to keep our position size small to limit our risk (1/2 or less than your normal trade size).

- Suggested Positions -

May $55.00 call (INTU1121E55) Entry @ $2.40, Exit 1.90 (-20.8%)

05/12 early exit near $56.00. Option @ -20.8%
05/09 consider an early exit
05/07 consider an early exit
04/30 Adjusted target to $58.75

chart:

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