Editor's Note:

Enthusiasm over the Greek debt swap helped fuel investor appetite for risk assets. The market bounced for the second day in a row. Both the ATHN and CLH trades were opened this morning.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 84.91 change: +1.06

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Apri$85c: -13.2% & Aprl$90c: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: ALXN outperformed the major indices with a +1.2% gain but has yet to break the short-term trend of lower highs. Readers may want to wait for a rally past today's high near $85.50 before considering new positions.

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: 83.17 change: +1.61

Stop Loss: 79.90
Target(s): 87.00
Current Option Gain/Loss: -10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: Widespread market gains helped push ARG to a +1.9% gain and a breakout to new highs. We only have six trading days left before March options expire. 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


AthenaHealth, Inc. - ATHN - close: 74.90 change: +2.65

Stop Loss: 69.75
Target(s): 77.50
Current Option Gain/Loss: +42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: Our new play on ATHN was triggered at the open. Shares broke out to new highs and outperformed the market with a +3.6% gain. I am not suggesting new positions at this time.

Earlier Comments:
There is a good chance that ATHN could see a short squeeze if it breaks out past its 2011 high at $72.70. The most recent data listed short interest at 34% of the small 34.7 million-share float. FYI: The Point & Figure chart for ATHN is bullish with a $105 target.

- Suggested Positions -

Long Apr $75 call (ATHN1221D75) Entry $2.38

Entry on March 08 at $72.75
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 577 thousand
Listed on March 07, 2012


American Express Co - AXP - close: 52.95 change: +0.68

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -28.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/08 update: AXP gapped open higher and closed the session with a +1.3% gain but struggled with prior resistance near $53.00 again. 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


Clean Harbors, Inc. - CLH - close: 69.19 change: +2.02

Stop Loss: 64.75
Target(s): 71.50
Current Option Gain/Loss: +61.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: Our new CLH trade is off to a strong start thanks to the market's widespread bounce. Our traded opened this morning with CLH at $67.77 and the stock rallied to a +3.0% gain.

Our target is $71.50 but more conservative traders may want to exit near $70.00. Aggressive trades could aim higher.

- Suggested Positions -

Long Apr $70 call (CLH1221D70) Entry $1.30

Entry on March 08 at $67.77
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 344 thousand
Listed on March 07, 2012


Capital One Financial - COF - close: 49.43 change: +0.84

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -66.9% & Apr$50c: -30.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: Financials were some of the best performers on Thursday and COF added +1.7%. A close back above round-number resistance at $50.00 would help reaffirm the up trend. 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: 83.84 change: +1.84

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: +14.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/08 update: The market's rally helped fuel WFM's push to new record highs. The stock outperformed with a +2.2% gain. I am not suggesting new positions at this time.

- 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: 541.99 change: +11.30

Stop Loss: n/a
Target(s): see below.
Current Option Gain/Loss: Mar$520P: -85.2% & weekly Mar$525p: -98.7%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
03/08 update: AAPL must have the wrong script. It's definitely not performing as we expected. Shares continue to rally even in spite of news that the U.S. Justice Department warned AAPL that the government plans to sue them and five other major publishers over potential price fixing for e-books. This news failed to stop the climb in shares of AAPL and the stock added +2.1%.

Our very aggressive weekly $525 March puts will expire after tomorrow (current bid is 11 cents). The normal monthly $520 March puts will expire in six trading days (current bid $1.46).

- 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 1 day
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: 65.67 change: +0.13

Stop Loss: 68.75
Target(s): 61.00
Current Option Gain/Loss: Mar$65P: -28.5% & Apr$60P: - 4.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: The initial bounce in AGP faded and shares saw its gains evaporate to a +0.19% gain. The overall picture still looks bearish for AGP. More conservative traders might want to inch their stops lower toward $68.00. Our target is $61.00.

NOTE: March puts expire in six trading days. 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 <-- 1.15/1.35 -->

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: 61.61 change: +1.42

Stop Loss: 65.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: +28.0% & Apr$60p: +22.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08 update: We were concerned about an oversold bounce in CLF, which is why we decided last night to sell half of our positions at the open this morning. Exit half of our Mar $65 put @ 4.70 (+64.9%) and Apr $60 put @ $2.40 (+18.8%). 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

03/08/12 sold half at the open. CLF gapped higher at $61.17
exit half of March $65 put @ $4.70 (+64.9%)
exit half of April $60 put @ $2.40 (+18.8%)
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: 68.53 change: +0.10

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:
03/08 update: EW continues to underperform the market. The stock did see an initial rally higher this morning but gains faded. EW ended the session with a +0.1% bounce. I will warn you that the intraday chart shows a potential very short-term double bottom near $68.00 today. If the market rallies again tomorrow I would expect an oversold bounce in EW. Look for resistance near $70.00 or the 10-dma. I am not suggesting new positions at this time.

- 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: 66.90 change: +0.91

Stop Loss: 68.05
Target(s): 60.25
Current Option Gain/Loss: Mar65P: -64.2% & Apr65P: -25.3%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
03/08 update: Today's break back above what should have been resistance near $66.00 is a warning signal for bears in PII. More conservative traders may want to consider an early exit now. 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: 64.41 change: +0.57

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:
03/08 update: WLP produced an oversold bounce from support near $64 but shares didn't make it very far. There is no change from my prior comments.

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