Editor's Note:

The Russell 2000 index has broken out past significant resistance. This is bullish for the market. Meanwhile it was a relatively quiet day for our candidates. Nothing was triggered or stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.30 change: +0.30

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:
03/19 update: AGN spent the day churning sideways in the $93.50-93.00 zone. More aggressive traders may want to buy calls here. We are waiting for a dip to $92.25. More conservative traders may want to wait for a potential dip into the $91-90 zone instead or better yet wait and buy a bounce.

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.

New buy-the-dip trigger @ 92.25

- Suggested Positions -

buy the Apr $92.50 call (AGN1221D92.5)

- or -

buy the Apr $95 call (AGN1221D95)

03/15/12 not open yet. New buy-the-dip trigger @ 92.25
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: 85.00 change: +0.16

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:
03/19 update: ARG rebounded off is morning lows to set a new closing high. More conservative traders may want to raise their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -

March position is closed.
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


Clean Harbors, Inc. - CLH - close: 69.14 change: +0.19

Stop Loss: 66.75
Target(s): 71.50
Current Option Gain/Loss: - 3.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: There is nothing new to report on for CLH. Shares continue to chop sideways. I am concerned with CLH's inability to break higher while the major indices continue to climb. More conservative traders may want to exit early 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


Chart Industries - GTLS - close: 75.76 change: +1.36

Stop Loss: 69.75
Target(s): 79.75
Current Option Gain/Loss: + 5.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: Traders bought the dip near $74.00 this morning and GTLS rallied to another new high. More conservative types might want to start raising their stops.

Earlier Comments:
Our exit target is $79.75. More aggressive traders could aim higher. The Point & Figure chart for GTLS is bullish with an $82 target.

- Suggested Positions -

Long Apr $75 call (GTLS1221D75) Entry $3.50

03/16/12 triggered at $74.25

Entry on March 16 at $74.25
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 712 thousand
Listed on March 15, 2012


Herbalife Ltd. - HLF - close: 71.62 change: +1.04

Stop Loss: 67.75
Target(s): 74.75
Current Option Gain/Loss: + 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: HLF gapped higher this morning but the stock struggled with new resistance at the $72.00 level all day long. I am not suggesting new positions at these levels. Nimble traders could buy calls on a dip or a bounce near $70.00 or the 10-dma.

Earlier Comments:
Our quick target is $74.75. More aggressive traders may want to aim higher. FYI: The Point & Figure chart for HLF is bullish with a long-term $103 target.

- Suggested Positions -

Long Apr $70 call (HLF1221D70) Entry $3.10

Entry on March 15 at $70.50
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on March 14, 2012


IPG Photonics Corp. - IPGP - close: 54.39 change: -1.08

Stop Loss: 52.49
Target(s): 60.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/19 update: IPGP underperformed on Monday. The stock is nearing what should be support at the $54.00 level. That's where the 40-dma, 50-dma, 200-dma and 300-dma are all converging. If we see IPGP close under $54.00 we'll consider dropping it as a candidate. Currently our plan is to buy calls if shares trade at $56.25 or higher. Nimble traders could buy a bounce off $54.00 instead.

Earlier Comments:
Shares could see a bit of a short squeeze. The most recent data listed short interest at 16.5% of the small 37.1 million share float.

Trigger @ $56.25

- Suggested Positions -

buy the Apr $60 call (IPGP1221D60)

Entry on March xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 763 thousand
Listed on March 15, 2012


Lufkin Industries - LUFK - close: 79.53 change: -0.40

Stop Loss: 76.99
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/19 update: The oil service stocks underperformed on Monday and LUFK failed to make any progress. Traders did buy the dip Monday morning but LUFK did not make any new relative highs.

I am suggesting we use a trigger to buy calls at $80.75 with a stop loss at $76.99, which is just under the 50-dma. Our target is $84.85. More aggressive trades could aim higher. The Point & Figure chart for LUFK is bullish with a $97 target.

Trigger @ $80.75

- Suggested Positions -

buy the Apr $85 call (LUFK1221D85)

Entry on March xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 494 thousand
Listed on March 17, 2012


Whole Foods Market - WFM - close: 85.23 change: +0.08

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: + 8.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/19 update: Monday was a quiet day for WFM. The stock dipped toward its simple 10-dma and bounced. 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: 65.89 change: +0.42

Stop Loss: 67.25
Target(s): 61.00
Current Option Gain/Loss: (Mar$65P: -82.1%) & Apr$60P: -54.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: AGP is still trading under resistance at the $66.00 level but shares did see a rally above this on an intraday basis. Today's close over the simple 10-dma is short-term bullish. I see this as a warning signal. More conservative traders may want to exit early now. I am not suggesting new positions at this time.

- Suggested Positions -

March position is closed.
Mar $65 PUT (AGP1217o65) entry $1.40, exit $0.25 (-82.1%)

- or -

Long Apr $60 PUT (AGP1221p60) entry $1.20 <-- 0.55/0.65 -->

03/19/12 readers may want to exit early now
03/17/12 new stop loss @ 67.25
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: 45.92 change: +0.46

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:
03/19 update: CNC hit new relative lows this morning. Shares also tagged round-number support near $45.00 and bounced. 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


Joy Global, Inc. - JOY - close: 79.36 change: -0.89

Stop Loss: 81.65
Target(s): 72.50
Current Option Gain/Loss: -41.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: Shares of JOY displayed relative weakness with a -1.1% decline even though precious metal prices (gold, silver, copper) all rose in value today. I am not suggesting new positions at this time.

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.

- Suggested Positions -

Long Apr $75 PUT (JOY1221P75) Entry $2.52

03/15/12 trade opened on JOY's gap down at $77.38, which is under our trigger to buy puts at $77.75.

Entry on March 15 at $77.38
Earnings Date 06/04/12 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on March 12, 2012


Polypore Intl. Inc. - PPO - close: 36.40 change: -0.99

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: +14.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19 update: Our PPO play is off to a good start. Shares opened at $36.21 and fell to a -3.5% decline The stock is now testing round-number support near $35.00. Don't be surprised to see a bounce. If the stock does bounce we're looking for a new lower low under the $38.00 level.

Earlier Comments:
We want to use small positions on PPO. Why small positions? We want to limit our risk because being bearish on PPO is a popular trade. The most recent data listed short interest at 34% of the 46.3 million-share float. It is this short interest that produces these brief little short squeezes higher that keep failing (at least they are failing so far). Our target is $31.00 or the dotted trend line of lower lows. FYI: The Point & Figure chart for PPO is bearish with a $16 target.

- Suggested (Small) Positions -

Long Apr $35 PUT (PPO1221P35) Entry $1.75

Entry on March 19 at $36.21
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on March 17, 2012