Editor's Note:

The market posts a widespread loss, marking the worst day for 2012 thus far. We saw several trades get stopped out. Plus, I am removing our untriggered plays in GTLS and HLF.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 83.28 change: -0.92

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Apri$85c: -28.9% & Aprl$90c: -35.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: ALXN slowly traded lower with shares falling toward their 20-dma. ALXN ended the session with a -1.0% decline after hitting an intraday low of $82.70. More aggressive traders may want to place their stop under $82.00, which could be short-term support. At the current pace ALXN could hit our stop loss at $82.45 if the market declines again tomorrow.

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: 80.42 change: -1.13

Stop Loss: 79.90
Target(s): 87.00
Current Option Gain/Loss: -85.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: ARG spiked lower at the open, following the major averages lower. Shares spent the rest of the day drifting sideways in a narrow range. ARG should have support near $80.00 but if the market declines again tomorrow we could see shares hit our stop loss at $79.90 on an intraday move lower. 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: 51.77 change: -1.23

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -47.9%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
03/06 update: Financial stocks were hit hard today. AXP underperformed with a -2.3% decline. The breakdown under $52.00 and its 30-dma is certainly short-term bearish. Any further declines tomorrow could hit or stop at $51.40. I am 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


Capital One Financial - COF - close: 48.27 change: -1.11

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -80.0% & Apr$50c: -45.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: Profit taking was widespread in the financial stocks and COF lost -2.2% (versus -2.4% in the XLF). Shares are now testing short-term support near $48.00. Any further declines and COF could hit our stop loss at $47.75. 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


Sherwin-Williams - SHW - close: 103.10 change: +0.41

Stop Loss: 99.80
Target(s): 104.75
Current Option Gain/Loss: +57.1%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/06 update: SHW continues to show relative strength. Shares bounced off the morning lows to rally +0.4%. I am suggesting we go ahead and sell half of our current position tomorrow morning at the open. I am also raising our stop loss to $99.80.

- Suggested Positions -

Long Mar $100 call (SHW1217C100) Entry $2.10

03/06/12 new stop loss @ 99.80, plan to sell half of our call position at the open tomorrow morning. current bid is $3.30 (+57.1%)
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: 80.94 change: -1.69

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: -37.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06 update: Suddenly Friday's breakout to new highs looks like a bull trap. WFM gave up -2.0% in profit taking today. If the market continues lower tomorrow then we'll likely see WFM test the $80.00 level. We have a stop loss at $79.95.

- 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


PUT Play Updates

Apple Inc. - AAPL - close: 530.26 change: - 2.90

Stop Loss: n/a
Target(s): see below.
Current Option Gain/Loss: Mar$520P: -25.7% & weekly Mar$525p: -43.9%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
03/06 update: It was a rough morning for AAPL as well. Shares gapped open lower at $523.66 and dipped to $516.22 before bouncing back. The rebound failed to break back above its simple 10-dma, which is now short-term resistance.

Tomorrow is the big day for AAPL's announcement. Will it be the iPad 3 or what some are suspecting AAPL will call the iPad HD? Frankly, it doesn't matter. Shares could see an initial spike on the news but we're expecting a sell-the-news reaction.

Sadly, the -$10 gap down this morning, killed our entry point on these short-term puts. The March $520 puts gapped open more than $3.00 to $9.90. The March $525 puts that expire in three days gapped open at $9.05 (almost +4.00), which really crushed our entry point on that particular position. I have adjusted our exit target prices below. I am not suggesting new positions at this time.

- Suggested (Small) Positions -

Long Mar $520 PUT (AAPL1217o520) Entry $9.90
Exit target: when the option bid hits $14.50

- or -

Very Aggressive - these expire in 3 days
Long Mar $525 PUT (AAPL1209o525) Entry $9.05
Exit target: when the option bid hits $12.50

03/06/12 AAPL gapped down -$10, which hurt our entry point on these short-term puts. I've adjusted our exit targets!

Entry on March 06 at $523.66
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 22.1 million
Listed on March 05, 2012


AMERIGROUP Corp. - AGP - close: 64.75 change: -1.77

Stop Loss: 68.75
Target(s): 61.00
Current Option Gain/Loss: Mar$65P: +25.0% & Apr$60P: +12.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: AGP gapped open lower at $66.00 and then fell to a -2.6% decline. The breakdown to new six-week lows is a good sign for our bearish trade. Our target is $61.00.

NOTE: March puts expire in less than two weeks. April puts have much wider spreads.

- Suggested Positions -

Long Mar $65 PUT (AGP1217o65) entry $1.40

- or -

Long Apr $60 PUT (AGP1221p60) entry $1.20 <-- 1.35/1.90 -->

03/06/12 AGP gapped open lower at $66.00

Entry on March 06 at $66.00
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 950 thousand
Listed on March 05, 2012


Cliffs Natural Resources - CLF - close: 60.35 change: -1.57

Stop Loss: 66.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: +77.1% & Apr$60p: +65.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: Material names continue to underperform. CLF gapped open lower and then hovered near round-number support at $60.00. Shares settled with a -2.5% decline. I warned readers that this level could be support and CLF could see an oversold bounce here. I'm not suggesting new positions at this time.

- 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: 64.21 change: -1.30

Stop Loss: 68.05
Target(s): 60.25
Current Option Gain/Loss: Mar65P: +32.1% & Apr65P: +14.2%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
03/06 update: PII dipped to its 50-dma and bounced. Shares still closed with a -1.9% decline. I am not suggesting new positions at this time. 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


CLOSED BULLISH PLAYS

BorgWarner Inc. - BWA - close: 79.55 change: -3.36

Stop Loss: 81.25
Target(s): 89.00
Current Option Gain/Loss: -87.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06 update: BWA has seen a rough two days of profit taking after Friday's intraday pull back from new highs. Shares gapped open lower this morning at $81.55 and quickly hit our stop loss at $81.25. The sell-off continued and BWA has closed under what should have been support near $80.00.

- Suggested Positions -

Mar $85 call (BWA1217C85) Entry $1.55 exit $0.20 (-87.0%)

03/06/12 stopped out at $81.25
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

chart:

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


Coach, Inc. - COH - close: $73.12 change: -3.05

Stop Loss: 73.75
Target(s): 82.50
Current Option Gain/Loss: Mar$75c: -67.3% & Apr$77.50c: -43.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06 update: Ouch! After holding up reasonably well the last couple of days COH was hammered for a -4.0% decline. I could not find any news to account for the relative weakness. It's probably just traders rushing to lock in gains on a stock that was hitting record highs three days ago. The breakdown under $74.00 is definitely short-term bearish. Our stop loss was hit at $73.75.

- Suggested Positions -

Mar $75 call (COH1217c75) entry $2.45 exit $0.80 (-67.3%)

- or -

Apr $77.50 call (COH1221D77.5) entry $2.40 exit $1.35 (-43.7%)

03/06/12 stopped out at $73.75
03/01/12 COH hit our trigger at $76.75

chart:

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: 113.67 change: -4.96

Stop Loss: 116.40
Target(s): 125.00
Current Option Gain/Loss: -55.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: GS was showing so much promise on its breakout four days ago. Unfortunately the rally has been crushed. Financials were hit hard today and GS underperformed with a -4.1% decline. The stock gapped open lower at $116.12, which is underneath our stop loss of $116.40. The play was closed immediately. Last week's breakout now looks like a bull trap pattern.

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

(small positions) - Suggested Positions -

Mar $120 call (GS1217C120) Entry $2.10 exit $0.94 (-55.2%)

03/06/12 stopped out at $116.12 (gap down exit)
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

chart:

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: 66.37 change: -2.45

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:
03/06 update: I am removing GTLS as a bullish candidate. Nimble traders may want to watch it for a dip or a bounce in the $65.00-64.00 zone, which could be support (since it was prior resistance). If you do buy a dip I'd keep your stop loss tight.

Trigger to buy calls @ 70.75

Our Trade Did Not Open

03/06/12 removed GTLS from the newsletter
03/02/12 trade did not open. Use a trigger at $70.75

chart:

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: 65.51 change: -1.46

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:
03/06 update: HLF continues to pull back from its recent high near $68.00. Shares now look like they could see a deeper correction toward the $63-62 zone. I am removing HLF from the newsletter as an active candidate but I would keep it on your watch list for a dip in the $62.50 area.

Trigger to buy calls @ $68.25 (small positions)

Our Trade Did Not Open

03/06/12 removed HLF from the newsletter
03/02/12 trade did not open. Adjust strategy to buy calls at $68.25 with a stop at $65.45.

chart:

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: 38.20 change: -1.22

Stop Loss: 38.45
Target(s): 44.75
Current Option Gain/Loss: -49.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06 update: Oil and energy stocks were hit hard today. Profit taking in NE pushed the stock to a -3.0% decline. Shares actually gapped open lower at $38.57 and quickly hit our stop loss at $38.45. NE might have some support near the $36.00 level so I'd keep it on your watch list.

- Suggested Positions -

Apr $40 call (NE1221D40) Entry $1.89 exit $0.95 (-49.7%)

03/06/12 stopped out at $38.45

chart:

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


Weight Waters Intl. - WTW - close: 77.50 change: -0.65

Stop Loss: 77.45
Target(s): 86.50
Current Option Gain/Loss: -89.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06 update: We have been cautious on WTW for days now and today's widespread market decline was strong enough to push WTW to our stop loss at $77.45.

- Suggested Positions -

Mar $80 call (WTW1217C80) Entry $1.40 exit $0.15 (-89.2%)

03/06/12 stopped out at $77.45
02/24/12 WTW gapped open higher at $80.26, which was above our trigger at $80.25.

chart:

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: 36.83 change: -1.08

Stop Loss: 36.90
Target(s): 43.00
Current Option Gain/Loss:(Feb37c: -48.1%) & Mar36c: -55.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/06 update: Oil and energy-related stocks were hammered lower and the XES ETF gapped down at $37.07. The sell-off pushed XES to an intraday low of $36.60. Our stop was hit at $36.90.

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.

(small positions) - Suggested Positions -

Mar $36 call (XES1217C36) Entry $2.45 exit $1.10 (-55.1%)

03/06/12 stopped out at $36.90
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.

chart:

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: 57.14 change: -1.10

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:
03/06 update: The XOP is another example of the profit taking in oil and energy stocks. This ETF gapped open lower at $57.34, which was below our stop loss at $57.45. I would keep this ETF on your watch list should it bounce near the rising 50-dma.

- Suggested Positions -

Mar $60 call (XOP1217C60) Entry $1.70 exit $0.41 (-75.8%)

- or -

Jun $60 call (XOP1216F60) Entry $4.10 exit $2.60 (-36.5%)

03/06/12 stopped out at $57.34, a gap down under our stop
02/29/12 adjusting stop loss to $57.45
02/23/12 new stop loss @ 57.85

chart:

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