Editor's Note:

Stocks ended Monday off their worst levels of the session but the major indices still posted widespread declines. The $RUT was an exception.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 84.20 change: -1.06

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Apri$85c: -18.0% & Aprl$90c: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: I am urging caution here. Our ALXN trade is not performing as planned. Shares did rally this morning and hit our trigger to buy calls at $85.55. Unfortunately the rally failed at $85.84 and ALXN unperformed with a -1.2% decline. We have a stop loss at $82.75 but that might be a little too tight. The rising 20-dma has been support in the past and it's currently at $82.80. Let's move our stop down to $82.45.

Earlier Comments:
We want to keep our position size small to limit our risk.

- Suggested (SMALL) Positions -

Long Apr $85 call (ALXN1221D85) Entry $4.15

- or -

Long Apr $90 call (AXLN1221D90) Entry $2.00

03/05/12 triggered at $85.55, adjust stop to $82.45
03/03/12 adjust entry strategy: buy calls at $85.55, stop loss @ 82.75
03/01/12 adjust entry strategy. buy calls if both ALXN and S&P 500 open positive tomorrow
02/29/12 trade not open yet. Adjust entry to use a buy the dip trigger at $82.50 with a stop loss at $81.45

Entry on March 05 at $85.55
Earnings Date 04/23/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on February 28, 2012


Airgas Inc. - ARG - close: 81.55 change: -0.69

Stop Loss: 79.90
Target(s): 87.00
Current Option Gain/Loss: -65.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: ARG pulled back toward recent support near $81 before paring its losses today. If the market continues to sink we could see ARG test support near $80.00 soon. I am not suggesting new positions at this time.

- Suggested Positions -

Long Mar $82.50 call (ARG1217C82.5) Entry $1.00

03/03/12 new stop loss @ 79.90
02/28/12 trade opened @ 82.21
02/27/12 not open yet, buy calls at the open tomorrow
02/24/12 not open yet, try again.

Entry on February 28 at $82.21
Earnings Date 05/07/12 (unconfirmed)
Average Daily Volume = 528 thousand
Listed on February 23, 2012


American Express Co - AXP - close: 52.97 change: -0.02

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -25.8%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
03/05 update: AXP closed virtually unchanged on the session after traders bought the dip midday. I remain cautious here. We are not suggesting new positions at this time.

Earlier Comments:
The plan was to keep our position size small. Our multi-week target is $56.50. Keep in mind that AXP doesn't move super fast. FYI: The Point & Figure chart for AXP is bullish with a $75 target.

- Suggested Positions - (Small Positions)

Long Apr 52.50 call (AXP1221D52.5) Entry $2.40

03/03/12 new stop loss @ 51.40
02/29/12 AXP gapped down at $53.46
02/28/12 not open yet. buy calls at the open tomorrow.
02/27/12 not open yet, try again.

Entry on February 29 at $53.46
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on February 25, 2012


BorgWarner Inc. - BWA - close: 82.91 change: -2.51

Stop Loss: 81.25
Target(s): 89.00
Current Option Gain/Loss: -54.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/05 update: Ouch! BWA just erased most of our gains with a -2.9% drop today. Shares managed to hold at short-term support near the 10-dma but if the market continues to drift lower we could see BWA fall toward the $80.00 level. Over the weekend we upped our stop loss to $81.25. I am not suggesting new positions at this time.

Earlier Comments:
A breakout would mean new record highs and could produce a some short covering in BWA. The most recent data listed short interest at 14% of the 108 million share float. FYI: The Point & Figure chart for BWA is bullish with a $108 target.

- Suggested Positions -

Long Mar $85 call (BWA1217C85) Entry $1.55

03/03/12 new stop loss @ 81.25
02/25/12 new stop loss @ 79.25
02/17/12 trade opened on BWA's gap open higher at $82.49

Entry on February 17 at $82.49
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on February 16, 2012


Capital One Financial - COF - close: 49.38 change: -0.51

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -53.0% & Apr$50c: -26.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: Financials were some of the worst performers today. COF gave up another -1%. More conservative traders may want to exit early. I am not suggesting new positions at this time.

Earlier Comments:
We want to keep our position size small to limit our risk. Our multi-week exit target is $54.75.

(small positions)

- Suggested Positions -

Long Mar $50 call (COF1217C50) entry $1.30

- or -

Long Apr $50 call (COF1221D50) entry $2.30

03/03/12 new stop loss at $47.95
02/28/12 triggered at $50.25

Entry on February 28 at $50.25
Earnings Date 04/23/12 (unconfirmed)
Average Daily Volume = 6.4 million
Listed on February 15, 2012


Coach, Inc. - COH - close: $76.17 change: -0.32

Stop Loss: 73.75
Target(s): 82.50
Current Option Gain/Loss: Mar$75c: -26.5% & Apr$77.50c: -14.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/05 update: COH spent most of the day bouncing between the $76-77 levels. If the market continues to sink we can look for COH to test $75.00 and its 20-dma soon. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $82.50 although don't be surprised if shares pause and pull back a bit when they initially test $80.00. FYI: The Point & Figure chart for COH is bullish with a long-term $109 target.

- Suggested Positions -

Long Mar $75 call (COH1217c75) entry $2.45

- or -

Long Apr $77.50 call (COH1221D77.5) entry $2.40

03/01/12 COH hit our trigger at $76.75

Entry on March 01 at $76.75
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on February 27, 2012


Goldman Sachs - GS - close: 118.63 change: -1.33

Stop Loss: 116.40
Target(s): 125.00
Current Option Gain/Loss: - 0.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: I had cautioned readers about another dip in GS. Shares tested prior resistance near $118 as new support. Actually the intraday low was $117.51. If both the S&P 500 and GS open positive then aggressive traders could use tomorrow as a new entry point. More conservative traders may want to up their stop closer to today's low.

Our exit target is $125.00 but more aggressive traders may want to aim for the $127.50-130.00 zone instead.

Earlier Comments:
GS can be a volatile stock at times so we want to keep our position size small.

(small positions) - Suggested Positions -

Long Mar $120 call (GS1217C120) Entry $2.10

03/03/12 new stop loss @ 116.40
02/28/12 GS disclosed it has received a Wells Notice from the SEC
02/28/12 triggered at $118.25

Entry on February 28 at $118.25
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on February 21, 2012


Chart Industries - GTLS - close: 68.82 change: +0.86

Stop Loss: 66.40
Target(s): 78.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/05 update: GTLS bucked the market's downtrend with a +1.2% gain today. Yet shares remain under the $70 level. Currently we have a trigger to buy calls at $70.75.

FYI: The Point & Figure chart for GTLS is bullish with an $82 target.

Trigger to buy calls @ 70.75

- Suggested Positions -

Buy the Apr $75 call (GTLS1221D75)

03/02/12 trade did not open. Use a trigger at $70.75

Entry on March xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 665 thousand
Listed on March 01, 2012


Herbalife Ltd. - HLF - close: 66.97 change: -0.19

Stop Loss: 65.45
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/05 update: HLF dipped toward its simple 10-dma and bounced intraday. We're still waiting for a breakout past $68.00. We want to buy calls (small positions) if HLF can trade at $68.25.

Our target is $72.50. FYI: The Point & Figure chart for HLF is bullish with a long-term $100 target.

Trigger to buy calls @ $68.25 (small positions)

- Suggested Positions -

buy the Mar $70 call (HLF1217C70)

- or -

buy the Apr $70 call (HLF1221D70)

03/02/12 trade did not open. Adjust strategy to buy calls at $68.25 with a stop at $65.45.

Entry on March xx at $ xx.xx
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on March 01, 2012


Noble Corp. - NE - close: 39.42 change: -0.87

Stop Loss: 38.45
Target(s): 44.75
Current Option Gain/Loss: -24.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/05 update: Warning! Today's decline and close under the $40.00 level in NE today is bearish. The intraday low is $38.78 and we have a stop loss at $38.45. I am not suggesting new positions at this time.

Earlier Comments:
Our multi-week target is $44.75. FYI: The Point & Figure chart for NE is bullish with a long-term $61 target.

- Suggested Positions -

Long Apr $40 call (NE1221D40) Entry $1.89

Entry on March 01 at $40.24
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 4.4 million
Listed on February 29, 2012


Sherwin-Williams - SHW - close: 102.69 change: -0.25

Stop Loss: 99.40
Target(s): 104.75
Current Option Gain/Loss: +42.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/05 update: The early morning rally attempt in SHW reversed before lunchtime. Shares chopped sideways the rest of the day. Readers may want to go ahead and take profits early. I am not suggesting new positions at this time.

- Suggested Positions -

Long Mar $100 call (SHW1217C100) Entry $2.10

02/28/12 new stop loss @ 99.40
02/27/12 readers may want to take profits now (@ +80.9%)
02/25/12 new stop loss @ 98.90
02/22/12 new stop loss @ 98.25

Entry on February 17 at $100.25
Earnings Date 04/23/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on February 14, 2012


Whole Foods Market - WFM - close: 82.62 change: -0.19

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/05 update: WFM slowly drifted toward prior resistance and what should be new support at the $82.00 level. If both WFM and the S&P 500 index open positive tomorrow then readers could use it as a new bullish entry point. Our target is $87.50. FYI: The Point & Figure chart for WFM is bullish with a $103 target.

- Suggested Positions -

Long Apr $85 call (WFM1221D85) Entry $1.88

Entry on March 02 at $82.55
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on March 01, 2012


Weight Waters Intl. - WTW - close: 78.15 change: +0.12

Stop Loss: 77.45
Target(s): 86.50
Current Option Gain/Loss: -85.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: WTW produced a minor bounce and outperformed the major indices. Yet the short-term trend of lower highs is still in place. More conservative traders may want to exit now. I am not suggesting new positions at this time.

Earlier Comments:
WTW could see a potential short squeeze. The most recent data listed short interest at 24.6% of the relatively small 35.1 million-share float. The stock has rallied to significant resistance near $80.00. A breakout could spark some short covering.

- Suggested Positions -

Long Mar $80 call (WTW1217C80) Entry $1.40

02/24/12 WTW gapped open higher at $80.26, which was above our trigger at $80.25.

Entry on February 24 at $80.26
Earnings Date 05/07/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on February 23, 2012


S&P Oil ETF - XES - close: 37.91 change: -0.69

Stop Loss: 36.90
Target(s): 43.00
Current Option Gain/Loss:(Feb37c: -48.1%) & Mar36c: -28.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: The action in XES was disappointing. Oil and energy stocks produced a mixed performance while crude oil prices rallied on Monday. Yet the XES underperformed with a -1.7% decline and a breakdown under the $38.00 level. The intraday low was $37.60. We have a stop loss at $36.90. I am not suggesting new positions at this time.

Earlier Comments:
The option spreads on the XES a bit wide, which makes this a higher-risk trade. I am suggesting we keep our position size small to limit our risk. Our multi-week exit target is $43.00.

(small positions) - Suggested Positions -

Long Mar $36 call (XES1217C36) Entry $2.45

02/18/12 new stop loss @ $36.90
02/14/12 exited Feb. calls at the close: bid @ $0.70 (-48.1%)
02/13/12 prepare to exit our Feb. $37 calls at the closing bell tomorrow.

Entry on February 06 at $37.75
Earnings Date --/--/--
Average Daily Volume = 177 thousand
Listed on February 04, 2012


Oil & Gas Exploration ETF - XOP - close: 58.24 change: -0.81

Stop Loss: 57.45
Target(s): 63.00
Current Option Gain/Loss: Mar$60c: -67.0% & Jun$60c: -23.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/05 update: The XOP also traded lower but only suffered a -1.3% decline. Traders were buying the dip near $58 and its 30-dma. The intraday low was $57.64. We have a stop loss at $57.45. If the energy sector continues to sink tomorrow we could see the XOP hit our stop. I am not suggesting new positions at this time.

- Suggested Positions -

Long Mar $60 call (XOP1217C60) Entry $1.70

- or -

Long Jun $60 call (XOP1216F60) Entry $4.10

02/29/12 adjusting stop loss to $57.45
02/23/12 new stop loss @ 57.85

Entry on February 14 at $58.75
Earnings Date --/--/--
Average Daily Volume = 3.8 million
Listed on February 13, 2012


PUT Play Updates

Cliffs Natural Resources - CLF - close: 61.92 change: -2.10

Stop Loss: 66.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: +29.8% & Apr$60p: +23.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/05 update: Shares of CLF continued to sink and underperformed the market with a -3.2% decline. I am not suggesting new positions at this time. Do not be surprised to see an oversold bounce near likely support at the $60.00 level.

- Suggested (Small) Positions -

Long Mar $65 put (CLF1217o65) Entry $2.85

- or -

Long Apr $60 put (CLF1221p60) Entry $2.02

Entry on March 05 at $63.57
Earnings Date 04/30/12 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on March 03, 2012


Polaris Industries Inc. - PII - close: 65.51 change: -0.81

Stop Loss: 68.05
Target(s): 60.25
Current Option Gain/Loss: Mar65P: -14.2% & Apr65P: - 4.7%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
03/05 update: Our new trade on PII is open. Shares hit our trigger to buy puts at $65.45. This breakdown to a new four-week low is bearish and I would still consider new put positions now at current levels. Our exit target is $60.25.

- Suggested Positions -

Long Mar $65 PUT (PII1217o65) Entry $1.40

- or -

Long Apr $65 PUT (PII1221P65) Entry $3.15

Entry on March 05 at $65.45
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 580 thousand
Listed on March 03, 2012