Editor's Note:

The rebound in the stock market paused ahead of the FOMC meeting tomorrow. No one is expecting a change in rates but investors will be keenly focused on the FOMC statement.

We did see CLR get stopped out.

Current Portfolio:


CALL Play Updates

Airgas Inc. - ARG - close: 82.54 change: -0.50

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:
03/12 update: Hmm... the combination of ARG's intraday reversal lower on Friday and today's dip almost looks like a very short-term top. Don't be surprised to see ARG pull back toward the $81.50-81.00 zone. We only have four 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.

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: 75.86 change: -0.14

Stop Loss: 71.75
Target(s): 77.50
Current Option Gain/Loss: +47.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: Monday was a quiet day for ATHN. Shares traded sideways in a narrow range. I don't see any changes from my prior comments. Our exit target is only $77.50. More conservative traders may want to go ahead and exit now. 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.

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: 52.77 change: -0.43

Stop Loss: 51.40
Target(s): 57.50
Current Option Gain/Loss: -40.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/12 update: Financial stocks were showing relative weakness early this morning. AXP was no exception and spiked lower. The stock spent the rest of the day drifting sideways. 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: 69.14 change: -0.38

Stop Loss: 64.75
Target(s): 71.50
Current Option Gain/Loss: +34.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: Shares of CLH failed at the $70.00 level for the second day in a row. Today's move erased Friday's small gain. Over the weekend I cautioned readers that CLH could be due for a little pullback. More conservative traders might want to adjust their stops closer to the $66 area. 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.

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: 48.98 change: -0.84

Stop Loss: 47.95
Target(s): 54.75
Current Option Gain/Loss: Mar$50c: -85.3% & Apr$50c: -45.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: After a three-day bounce the financial sector traded lower on Monday. COF underperformed the sector with a -1.6% decline. I remain cautious here. We only have four 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.

(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


Tractor Supply Co. - TSCO - close: 87.37 change: -0.10

Stop Loss: 84.90
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/12 update: TSCO tried to rally but struggled with short-term resistance near $88.00. Currently our plan is to open bullish positions if TSCO can trade at $88.50 or higher. If triggered we'll use a stop at $84.90. Our exit target is $94.00. More aggressive trades could aim higher. If you have enough patience you could aim for the $99-100 area instead. The Point & Figure chart for TSCO is bullish with a $109 target.

Trigger @ $88.50

- Suggested Positions -

buy the Apr $90 call (TSCO1221D90)

Entry on March xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 566 thousand
Listed on March 10, 2012


Whole Foods Market - WFM - close: 83.80 change: -0.07

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: + 1.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/12 update: It was a quiet day for WFM with shares consolidating sideways in a narrow range (mostly under $84). I don't see any changes from my weekend comments. WFM remains near all-time 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

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: 552.00 change: + 6.83

Stop Loss: n/a
Target(s): see below.
Current Option Gain/Loss: Mar$520P: -96.9%
& (expired weekly Mar$525p: -100%)
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
03/12 update: AAPL's rally just refuses to die. We should modify the famous movie quote from Vizzini in "Princess Bride". It should say, "You fell victim to one of the classic blunders - The most famous of which is "never get involved in a land war in Asia" - but only slightly less well-known is this:"Never bet on shares of AAPL to go down!"

We only have four days left on our March puts and at 30 cents it's not worth selling them now in case AAPL does see a correction this week. 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!

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: 64.97 change: -1.22

Stop Loss: 68.75
Target(s): 61.00
Current Option Gain/Loss: Mar$65P: -35.7% & Apr$60P: - 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: The oversold bounce in AGP is rolling over. Today's move (-1.8%) looks like a new bearish entry point for puts. We only have four days left on our March puts.

- Suggested Positions -

Long Mar $65 PUT (AGP1217o65) entry $1.40

- or -

Long Apr $60 PUT (AGP1221p60) entry $1.20 <-- 1.20/1.40 -->

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: 63.62 change: -0.37

Stop Loss: 65.25
Target(s): 57.50
Current Option Gain/Loss: Mar$65p: -34.0% & Apr$60p: -20.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: CLF has seen its bounce fail at the $65.00 level two days in a row. Resistance is holding for now. We only have four days left on our March puts. 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: 69.24 change: +0.32

Stop Loss: 72.25
Target(s): 63.00
Current Option Gain/Loss: -24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: EW did produce an oversold bounce back toward round-number resistance at $70.00. Fortunately the rally was losing steam into the closing bell. More conservative traders might want to consider a stop loss closer to the simple 10-dma instead. 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


Union Pacific - UNP - close: 108.15 change: +0.51

Stop Loss: 110.25
Target(s): 101.50
Current Option Gain/Loss: - 3.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: UNP saw a small gap higher at the open this morning but shares essentially drifted sideways in a relatively narrow range. The stock remains under resistance near $110 and its 10-dma. I would still consider small bearish positions at current levels.

*Small Positions* - Suggested Positions -

Long Apr $105 PUT (UNP1221P105) Entry $2.20

Entry on March 12 at $107.89
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on March 10, 2012


WellPoint, Inc. - WLP - close: 64.01 change: -0.87

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:
03/12 update: The oversold bounce in WLP is already rolling over. WLP looks poised to break down under key support in the $63.50 area soon.

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

Continental Resources - CLR - close: 87.67 change: -1.04

Stop Loss: 86.75
Target(s): 99.00
Current Option Gain/Loss: -44.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12 update: Energy stocks continued to sink on Monday. CLR slipped to $86.45 intraday. Our stop loss was hit at $86.75. The larger trend for CLR is still higher but readers may want to wait for a new bounce off the rising 50-dma before considering new bullish positions.

- Suggested Positions -

Apr $95 call (CLR1221D95) Entry $2.95 exit $1.65 (-44.0%)

03/12/12 stopped out at @ 86.75
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