Editor's Note:

Sherwin-Williams continues to outperform and shares rallied to new record highs today.

Meanwhile AAPL bounced back from its afternoon lows to close just above breakeven on the session.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 83.85 change: +0.57

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Apri$85c: -25.3% & Aprl$90c: -32.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07 update: ALXN showed mild improvement today with a +0.6% gain. Shares might show better strength tomorrow. It looks like the company issued a press release after the closing bell. The press release talks about ALXN's Phase 2 study with its "asfotase alfa" enzyme treatment for patients with hypophosphatasia. According to ALXN 90% of patients showed significant healing. I don't see any initial after hours action to this news so we'll have to wait and see.

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: 81.56 change: +1.14

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:
03/07 update: ARG managed to completely erase yesterday's losses with a +1.4% gain today. Shares are still under their 10-dma so I remain cautious here. It is worth noting that the MACD indicator on the daily chart is showing a bearish divergence with ARG's stock price. 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: 52.27 change: +0.53

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -40.4%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
03/07 update: Yesterday financial stocks were leading the market lower. Today they were helping lead the market higher. AXP added +1.0% but today's move produced an "inside day" within yesterday's trading range. AXP is still in jeopardy of further declines. 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: 48.59 change: +0.32

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -81.5% & Apr$50c: -43.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07 update: Hmm... COF's bounce today ended a four-day sell-off but the rebound was uninspiring. I remain cautious here. 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


Whole Foods Market - WFM - close: 82.00 change: +1.07

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: -26.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07 update: WFM delivered a nice rebound today, recouping about two-thirds of yesterday's decline. I remain a little cautious here with WFM testing prior resistance near $82.00.

- 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: 530.69 change: + 0.43

Stop Loss: n/a
Target(s): see below.
Current Option Gain/Loss: Mar$520P: -47.9% & weekly Mar$525p: -74.5%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
03/07 update: I'm not surprised by AAPL's initial gap higher this morning. As expected the stock started to sink following the actual product launch this afternoon. What is surprising is that AAPL rebounded off its afternoon lows to close in positive territory. I suspect this strength is very temporary and AAPL will continue lower.

I'm not going into details about AAPL's "New" iPad. They're not calling it the iPad 3. You can get plenty of details at AAPL's home page: www.Apple.com, which had briefly crashed this afternoon due to all the traffic. I will confess it's a beautiful looking product and I'm sure they'll sell millions of them but that doesn't mean AAPL's overbought stock won't see a correction lower.

This remains a very aggressive trade and we only have TWO days left on the March $525 weekly puts. Thankfully we have seven trading days left on the March $520 puts. I would still consider buying the normal March $520 puts now (current ask $5.25).

- 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 2days
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: 65.54 change: +0.79

Stop Loss: 68.75
Target(s): 61.00
Current Option Gain/Loss: Mar$65P: -14.2% & Apr$60P: + 4.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07 update: AGP was not immune to the market-wide bounce today but the stock's rebound did stall at prior support and what should be new short-term resistance near $66 midday. 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 <-- 1.25/1.45 -->

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: 60.19 change: -0.16

Stop Loss: 65.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: +77.1% & Apr$60p: +55.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07 update: CLF was little changed today. The fact that shares closed negative while most of the market bounced is a sign of relative weakness. Although it's worth noting that CLF is holding near support at the $60.00 level.

I am suggesting we go ahead and sell half of our positions now at the opening bell tomorrow to lock in a gain. Current bid on the March $65 put is $5.05. Bid on the April $60 put is $3.15.

We will lower our stop loss down to $65.25. 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

03/07/12 prepare to sell half of our positions at the open tomorrow to lock in a gain.
03/07/12 new stop loss @ 65.25

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


Edwards Lifesciences - EW - close: 68.43 change: -0.38

Stop Loss: 72.25
Target(s): 63.00
Current Option Gain/Loss: + 6.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07 update: Our new play on EW is moving the right direction. This morning saw an initial spike higher that quickly reversed. EW failed to post gains like most of the broader market, which is a good sign for the bears.

Our target is $63.00.

- Suggested (Small) Positions -

Long Apr $65 PUT (EW1221p65) Entry $1.65

Entry on March 07 at $68.76
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on March 06, 2012


Polaris Industries Inc. - PII - close: 64.21 change: -1.30

Stop Loss: 68.05
Target(s): 60.25
Current Option Gain/Loss: Mar65P: -39.2% & Apr65P: -14.2%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
03/07 update: PII is displaying the same sort of volatility we saw late last week. Shares rebounded from their 50-dma and posted a +2.7% gain. Yet the rally stalled right at prior support and now what should be new resistance near $66. I am not suggesting new positions at this time.

- 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


WellPoint, Inc. - WLP - close: 63.84 change: -0.21

Stop Loss: 65.25
Target(s): 60.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/07 update: WLP continues to drift lower and underperformed the broader market today with a -0.3% decline. The intraday low was $63.75.

I am suggesting a trigger to open small bearish positions at $63.40 with a stop loss at $65.25. Our target is $60.25.

Trigger @ 63.40 (small positions)

- Suggested Positions -

buy the Apr $62.50 PUT (WLP1221p62.5)

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on March 06, 2012


CLOSED BULLISH PLAYS

Sherwin-Williams - SHW - close: 106.15 change: +3.05

Stop Loss: 99.80
Target(s): 104.75
Current Option Gain/Loss: +76.1% or +133.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/07 update: Target achieved!

Yesterday we had grown cautious on SHW and suggested that readers go ahead and sell half of our calls at the opening bell this morning. The stock opened at $103.36 and surged to new highs with a +2.9% gain. Thus we exited half our position at the open and closed the rest of it at our target of $104.75.

- Suggested Positions -

Mar $100 call (SHW1217C100) Entry $2.10
Exit at the open: $3.70 (+76.1%)
Exit at our target: $4.90 (+133.3%)

03/07/12 SHW hit our exit target at $104.75
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

chart:

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