Editor's Note:

Traders continue to buy stocks following Tuesday's dip and the major indices are up three days in a row.

Our new CLR trade was triggered on Friday. Meanwhile I am suggesting an early exit on ALXN and PII.

Current Portfolio:


CALL Play Updates

Airgas Inc. - ARG - close: 83.04 change: -0.13

Stop Loss: 79.90
Target(s): 87.00
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: ARG tagged another new high on Friday morning at $83.77 and then faded lower. We only have five trading days left on our March calls. 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.

chart:

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: 76.00 change: +1.10

Stop Loss: 71.75
Target(s): 77.50
Current Option Gain/Loss: +55.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: ATHN hit another new record high on Friday at $77.20. Shares pared their gains by the closing bell but still settled with a +1.4% gain. Our exit target is only $77.50. More conservative traders may want to go ahead and exit now with the bid on our call at $3.70 (+55%). I am raising our stop loss up to $71.75. 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

03/10/12 new stop loss @ $71.75, readers may want to go ahead and take profits now.

chart:

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: 53.20 change: +0.25

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -23.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/10 update: Financial stocks continued to help lead the rebound higher on Friday but momentum in AXP slowed a little bit. Shares only managed a +0.4% gain. The stock remains inside its bullish channel but I am cautious on launching 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.

chart:

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: 69.52 change: +0.33

Stop Loss: 64.75
Target(s): 71.50
Current Option Gain/Loss: +57.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: CLH has seen a strong bounce from $65 to $70. Shares hit $69.97 on Friday. It might be time for a little pullback. Readers may want to go ahead and take profits now. Officially we are still aiming for $71.50. I am not suggesting new positions at this time.

Earlier Comments:
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

03/10/12 CLH is testing the $70.00 level. Readers may want to take profits now.

chart:

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


Continental Resources - CLR - close: 88.71 change: -0.78

Stop Loss: 86.75
Target(s): 99.00
Current Option Gain/Loss: -23.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: Trading action in CLR on Friday was disappointing. Shares did rally past $90.00 and hit our trigger to buy calls at $90.25 but the stock reversed at its 10-dma. Technically Friday's move is both a failed rally near short-term resistance and a bearish engulfing candlestick reversal pattern.

I am not suggesting new bullish positions until CLR trades over $90.50 again.

Earlier Comments:
The stock could see a short squeeze. The most recent data listed short interest at 19% of the small 40.9 million-share float. We will set our exit target at $99.00 since the trend of higher highs should lead CLR toward the $100 area. FYI: The Point & Figure chart for CLR is bullish with a long-term $140 target.

- Suggested Positions -

Long Apr $95 call (CLR1221D95) Entry $2.95

03/09/12 triggered at $90.25 but shares reversed and painted a bearish reversal candlestick.

chart:

Entry on March 09 at $90.25
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 08, 2012


Capital One Financial - COF - close: 49.82 change: +0.39

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -56.1% & Apr$50c: -23.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: COF continues to bounce and hit $50.38 intraday. It's a little disappointing to see shares fail to close over $50.00 but the larger trend is still higher. We only have five trading days left on our March calls. 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

chart:

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: 83.87 change: +0.03

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: + 7.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/10 update: WFM failed to make much progress on Friday. Shares closed almost unchanged albeit at record highs. More conservative traders may want to start inching up their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $85 call (WFM1221D85) Entry $1.88

chart:

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: 545.17 change: + 3.18

Stop Loss: n/a
Target(s): see below.
Current Option Gain/Loss: Mar$520P: -90.4% & weekly Mar$525p: -100%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
03/10 update: AAPL continues to thwart the bears. News this past week that the Justice Department could sue AAPL and other e-book publishers had no impact on the stock price. Normally AAPl sees a sell-the-news move lower following a major product announcement but that didn't happen this time. Friday saw AAPL bounce back toward its all-time highs set a week ago near $548 a share. If we see shares close over $548 readers may want to abandon ship although most of the damage to our put options has already been done. Our very aggressive, weekly March $525 puts expired at $0.00 this weekend. 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 have expired
Mar $525 PUT (AAPL1209o525) Entry $9.05, exit $0.00 (-100%)

03/10/12 our very aggressive weekly March $525 puts have expired
03/06/12 AAPL gapped down -$10, which hurt our entry point on these short-term puts. I've adjusted our exit targets!

chart:

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: 66.19 change: +0.52

Stop Loss: 68.75
Target(s): 61.00
Current Option Gain/Loss: Mar$65P: -53.5% & Apr$60P: -16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: AGP is still hovering near $66 and under technical resistance at its 50-dma. Readers may want to look for another failed rally in the $67.00-67.50 zone as a new entry point or look for a new drop under $65.00. Our target is $61.00.

- Suggested Positions -

Long Mar $65 PUT (AGP1217o65) entry $1.40

- or -

Long Apr $60 PUT (AGP1221p60) entry $1.20 <-- 1.00/1.20 -->

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

chart:

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: 63.99 change: +2.38

Stop Loss: 65.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: -36.8% & Apr$60p: -17.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: Ouch! An analyst upgrade on Friday produced a big bounce in CLF. Shares outperformed the market with a +3.8% gain. The rally stalled at overhead resistance near $65.00. The rebound cut our March puts in half. If the rally continues we should see CLF hit our stop loss at $65.25. 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

chart:

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: 68.92 change: +0.39

Stop Loss: 72.25
Target(s): 63.00
Current Option Gain/Loss: -12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: EW managed a +0.5% gain on Friday but still closed near its lows for the week. The stock remains short-term oversold. I would not be surprised to see a bounce toward $70.00 or even its simple 10-dma near $70.90. I am not suggesting new positions at this time.

- Suggested (Small) Positions -

Long Apr $65 PUT (EW1221p65) Entry $1.65

chart:

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


WellPoint, Inc. - WLP - close: 64.88 change: +0.47

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:
03/10 update: WOLP produced a little oversold bounce from support but the overall pattern has not changed. WLP is still underperforming the broader market. The stock is still at risk for a breakdown under key support in the $63.50 area.

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)

chart:

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

Alexion Pharma. - ALXN - close: 84.73 change: -0.18

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: Apri$85c: -18.0% & Aprl$90c: -30.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/10 update: The stock market has seen three days of decent gains off its Tuesday lows. While ALXN is up of its lows of the week the stock is not making that much progress. Shares continue to trade sideways under resistance near the $86.00 level. We are suggesting an early exit now.

I do want to point out that the larger trend for ALXN is still bullish and more aggressive traders may want to hang on to their April calls and ride it out for a few more days to see if ALXN can breakout past $86.00.

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

- Suggested (SMALL) Positions -

Apr $85 call (ALXN1221D85) Entry $4.15, exit $3.40 (-18.0%)

- or -

Apr $90 call (AXLN1221D90) Entry $2.00, exit $1.40 (-30.0%)

03/10/12 suggesting an early exit
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

chart:

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


CLOSED BEARISH PLAYS

Polaris Industries Inc. - PII - close: 67.16 change: +0.26

Stop Loss: 68.05
Target(s): 60.25
Current Option Gain/Loss: Mar65P: -78.5% & Apr65P: -31.7%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
03/10 update: I am not convinced this bounce in PII is for real but shares are not cooperating. The $66.00 level should have been stronger resistance. The much larger, longer-term trend is higher but PII could dip toward the 200-dma near $58 and still maintain that long-term up trend. As of tonight I am suggesting an early exit now.

- Suggested Positions -

Mar $65 PUT (PII1217o65) Entry $1.40, exit $0.30 (-78.5%)

- or -

Apr $65 PUT (PII1221P65) Entry $3.15, exit $2.15 (-31.7%)

03/10/12 exit early.

chart:

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