Editor's Note:

We closed some March option positions early today. Meanwhile the market was content to drift sideways on Wednesday.

Exiting our March calls ended in profits for both ARG and COF. We also closed a losing March put position in AGP. Plus, we have dropped AAPL from the newsletter. WLP was stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.36 change: +1.24

Stop Loss: 89.75
Target(s): 98.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14 update: Our trade in AGN is not open yet. Both AGN and the S&P 500 index opened flat. Eventually both drifted sideways. More conservative traders may want to wait and try and buy calls on a dip (maybe near $92.00). I am suggesting we go ahead and buy calls at current levels but only if both AGN and the S&P 500 index open positive tomorrow. We will start with a stop at $89.75. Our multi-week target is $98.00. FYI: The Point & Figure chart for AGN is bullish with a $110 target.

Do not enter position unless AGN and the S&P 500 are both positive at the open

- Suggested Positions -

buy the Apr $95 call (AGN1221D95)

03/14/12 not open yet. try again.

Entry on March xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on March 13, 2012


Airgas Inc. - ARG - close: 83.97 change: +0.20

Stop Loss: 81.75
Target(s): 87.00
Current Option Gain/Loss: (Mar82.5c: +45%) & Apr$85c: - 8.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: ARG continued to drift higher. We closed our March $82.50 calls and the bid settled at $1.45 (+45%). Our new play to buy the April $85 calls was triggered when ARG hit $84.05.

- Suggested Positions -

Mar $82.50 call (ARG1217C82.5) Entry $1.00, exit $1.45 (+45%)

- or -

Long Apr $85.00 call (ARG1221D85) Entry $1.25

03/14/12 April $85 call play opened
Exited March $82.50 calls at the close (bid $1.45, +45%)
03/13/12 new stop loss @ 81.75
Buy April calls (see 2nd position) if ARG hits $84.05
Plan to sell our March calls at the closing bell tomorrow.
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: 56.15 change: +1.90

Stop Loss: 52.40
Target(s): 57.00
Current Option Gain/Loss: +64.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/14 update: Bullish analyst comments helped propel shares of AXP higher today. The stock outperformed with a +3.5% gain. Shares have now broken out to new multi-year highs. The stock has not traded above $55 since December 2007.

I am not suggesting new positions at this time. Please note that I am adjusting our exit target to $57.00. We will raise our stop loss up to $52.40.

Earlier Comments:
The plan was to keep our position size small.

- Suggested Positions - (Small Positions)

Long Apr 52.50 call (AXP1221D52.5) Entry $2.40

03/14/12 new stop loss @ 52.40, adjust exit to $57.00
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: 68.98 change: -1.02

Stop Loss: 66.75
Target(s): 71.50
Current Option Gain/Loss: +19.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: Warning! The action in CLH today is short-term bearish. The rally attempt over resistance at $70.00 failed. CLH underperformed with a -1.4% decline. Shares look poised to dip back toward support near $66-65. We have a stop loss at $66.75. More conservative traders may want to exit early right now. 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

03/13/12 new stop loss @ 66.75
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: 52.33 change: +1.38

Stop Loss: 47.95
Target(s): 54.75
Current Option Gain/Loss:(Mar$50c: +83.8%) & Apr$50c: +41.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: Many of the financial stocks continued to perform well on top of yesterday's big gains. COF was one of them with a +2.7% rally today. Shares have broken out to new eight-month highs.

It was our plan to exit our March calls at the closing bell tonight. The March $50 call settled with a bid of $2.39 (+83.8%). Please note that I am raising the stop loss to $48.60. 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 -

Mar $50 call (COF1217C50) entry $1.30, exit $2.39 (+83.8%)

- or -

Long Apr $50 call (COF1221D50) entry $2.30

03/14/12 new stop loss @ 48.60
03/14/12 as planned, closed Mar $50 call, bid @ $2.39 (+83.8%)
03/13/12 prepare to exit March calls at the close tomorrow
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


FedEx Corp. - FDX - close: 92.20 change: -0.68

Stop Loss: 89.75
Target(s): 96.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14 update: Our FDX trade is not open yet. Shares of FDX opened higher but the S&P 500 did not. There was no follow through on FDX's open and shares fell back to bounce near the $91.50 level twice. I do not see any changes from my prior comments and suggest we try and buy calls again tomorrow.

We want to open bullish positions in FDX at the open tomorrow but only if both FDX and the S&P 500 index open positive. We'll use a stop loss at $89.75. Our short-term target is $96.75.

Do not enter position unless FDX and the S&P 500 are both positive at the open

- Suggested Positions -

buy the Apr $95 call (FDX1221D95)

03/14/12 not open yet. try again.

Entry on March xx at $ xx.xx
Earnings Date 03/22/12 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on March 13, 2012


Tractor Supply Co. - TSCO - close: 87.63 change: -0.66

Stop Loss: 85.75
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14 update: TSCO remains stuck under resistance near $88.25. It's worth noting that the consolidation appears to be coiling more tightly, which would suggest a breakout is getting closer. I am somewhat concerned that TSCO has not been able to breakout yet. We are adjusting our trigger to buy calls from $88.50 to $88.75.

Earlier Comments:
We want to keep our position size small. Our exit target is $94.00. More aggressive traders 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 @ $88.75 (small positions)

- Suggested Positions -

buy the Apr $90 call (TSCO1221D90)

03/14/12 adjust trigger to $88.75
03/13/12 if triggered at $88.50, only use small positions, move stop loss to $85.75

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: 85.13 change: -0.84

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: +27.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14 update: After yesterday's big gain WFM hit some profit taking today. The stock gave up -0.9%. Readers can look for broken resistance near $82.00 to offer new support. I am not suggesting new positions at this time.

Currently our exit target is $87.50. More aggressive traders may want to aim for the $89.50-90.00 zone instead.

- Suggested Positions -

Long Apr $85 call (WFM1221D85) Entry $1.88

03/13/12 new stop loss @ 81.75

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

AMERIGROUP Corp. - AGP - close: 65.53 change: -0.01

Stop Loss: 68.05
Target(s): 61.00
Current Option Gain/Loss: (Mar$65P: -82.1%) & Apr$60P: -20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: AGP is not making any progress. The bounce attempt this morning stalled under $66 and its 10-dma. The trend remains bearish but I am not suggesting new positions.

Our plan was to exit the March puts at the opening bell this morning. The bid was at $0.00 (-00.0%). We still have the April puts.

- Suggested Positions -

Mar $65 PUT (AGP1217o65) entry $1.40, exit $0.25 (-82.1%)

- or -

Long Apr $60 PUT (AGP1221p60) entry $1.20 <-- 0.95/1.15 -->

03/14/12 planned exit for the Mar.$65 put, bid @ 0.25 (-82.1%)
03/13/12 new stop loss at $68.05
prepare to exit the March $65 puts at the open tomorrow,
we will keep the April $60 puts active.
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


Centene Corp. - CNC - close: 45.48 change: -0.17

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14 update: CNC continues to underperform. The stock is clearly under its 50-dma now and CNC is nearing support at $45.00. I don't see any changes from my prior comments.

I am suggesting a trigger to open bearish put positions at $44.75. This will require CNC to trade under its 50-dma and potential support at the $45.00 mark. If triggered we'll use a stop loss at $46.25. Our target is $40.50.

Trigger to buy PUTS @ $44.75

- Suggested Positions -

buy the Apr $45 PUT (CNC1221P45)

Entry on March xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 529 thousand
Listed on March 12, 2012


Edwards Lifesciences - EW - close: 69.69 change: +0.39

Stop Loss: 72.25
Target(s): 63.00
Current Option Gain/Loss: -36.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: EW is still trying to bounce and shares managed a +0.3% gain today. The stock did trade over short-term resistance near $70.00 and at its 10-dma today. You could argue the current four-day bounce in EW looks like a bear-flag pattern. I am not suggesting new positions at this time. More conservative traders may want to lower their stop loss.

- 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


Joy Global, Inc. - JOY - close: 78.64 change: -3.37

Stop Loss: 81.65
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14 update: JOY has produced a rather dramatic reversal lower today. Wednesday's -4.1% decline has completely erased yesterday's big bounce. The move is most likely a reflection of the big drop in gold prices today, which prompted investors to sell anything related to mining. JOY still has support near $78.00. We have a trigger to buy puts at $77.75.

Earlier Comments:
Our target is $72.50. More aggressive traders could aim lower. The Point & Figure chart for JOY is bearish with a $70 target.

Trigger to buy PUTS @ $77.75

- Suggested Positions -

buy the Apr $75 PUT (JOY1221P75)

Entry on March xx at $ xx.xx
Earnings Date 06/04/12 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on March 12, 2012


CLOSED BEARISH PLAYS

Apple Inc. - AAPL - close: 589.58 change: +21.48

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

Comments:
03/14 update: Our very aggressive, sell-the-news put play in AAPL was a failure. The rocket thrust higher in shares of AAPL continues. Shares soared another +3.7% and are quickly approaching the $600 mark. AAPL's market cap hit $550 billion (another record). The stock is up +62% from its November 2011 lows. AAPL is up +636% from its January 2009 lows near $80. The stock might see some profit taking when it tags $600 but there is almost zero chance AAPL will see a big enough drop to help our out of the money March puts, which expire in two days. I am dropping AAPL from the newsletter tonight.

- Suggested (Small) Positions -

Mar $520 PUT (AAPL1217o520) Entry $9.90, exit $0.00 (-100%)

03/14/12 Dropping AAPL from the newsletter. Puts will expire (-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


WellPoint, Inc. - WLP - close: 67.22 change: +2.17

Stop Loss: 65.25
Target(s): 60.25
Current Option Gain/Loss: -52.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14 update: Murphy's law is alive and well. Yesterday WLP dipped just low enough to hit our trigger to buy puts at $63.40. The stock immediately reversed higher on Tuesday. Shares accelerated higher today with a +3.3% gain and a rally past a horde of short-term resistance. Our trade was stopped out moments after WLP opened higher at $65.22.

(small positions)- Suggested Positions -

Apr $62.50 PUT (WLP1221p62.5) Entry $1.25 exit $0.60 (-52.0%)

03/14/12 stopped out at $65.25.
03/13/12 triggered at $63.40

chart:

Entry on March 13 at $63.40
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on March 06, 2012