Editor's Note:

The market rally paused on Tuesday but stocks did rebound off their morning lows.

We saw two trades get triggered during today's action. I am suggesting an early exit on CLH.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.17 change: -0.13

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:
03/20 update: The rally in stocks took a day off yet AGN only managed a dip toward its simple 10-dma before bouncing. Shares closed down -0.1%. The intraday low was $92.72. 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


Alexion Pharma - ALXN - close: 90.02 change: +0.21

Stop Loss: 87.75
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: - 7.8% & May$95c: - 6.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: ALXN did not make a lot of progress today but shares did hit an intraday high of $90.53. Our trigger to buy calls was hit at $90.25. The stock spent most of the session churning underneath the $90.00 level. Readers may want to wait for a new high past $90.50 before launching new positions.

- Suggested Positions -

Long Apr $90 call (ALXN1221D90) Entry $3.20

- or -

Long May $95 call (ALXN1219E95) Entry $2.35

03/20/12 triggered at $90.25

Entry on March 20 at $90.25
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 1.25 million
Listed on March 19, 2012


Airgas Inc. - ARG - close: 85.69 change: +0.69

Stop Loss: 81.75
Target(s): 87.00
Current Option Gain/Loss: (Mar82.5c: +45%) & Apr$85c: +36.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: ARG saw a little bit of volatility this morning. Shares spiked down toward $83.50 and its simple 10-dma before bouncing back and actually outperforming the market with a +0.8% gain. The stock closed at another high. More conservative traders may want to up their stop loss toward the $83.00-83.50 zone. Currently our exit target is $87.00. More aggressive traders may want to aim for $89 instead. 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


Chart Industries - GTLS - close: 73.92 change: -1.84

Stop Loss: 69.75
Target(s): 79.75
Current Option Gain/Loss: -22.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: The U.S. market hit some profit taking today and GTLS was no exception. Shares fell -2.4%. Will it bounce at the simple 10-dma near $73.00? Or will GTLS dip toward the $70.50-70.00 zone? At this time I am not suggesting new positions but a dip near $70 can be used as a new entry point.

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: 71.13 change: -0.49

Stop Loss: 67.75
Target(s): 74.75
Current Option Gain/Loss: - 4.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: HLF is also seeing a little profit taking after hitting new highs near $72.00 yesterday. Look for short-term support near $70.00 or its 10-dma near $69.50.

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:
03/20 update: IPGP is still correcting lower but shares did bounce off technical support near its converging 50-dma and 200-dma. When the 50-dma crosses up and over its 200-dma is called a "golden cross" because it usually signals a new longer-term up trend. Nimble traders could use a bounce from current levels as a new entry point to buy calls. We are sticking with our trigger at $56.25 for now.

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: 77.72 change: -1.81

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:
03/20 update: Oil and energy stocks were trending lower today. LUFK dipped toward its 50-dma. We are still on the sidelines waiting for a rally past $80. I don't see any changes from my prior comments.

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


NetEase.com - NTES - close: 56.30 change: -0.44

Stop Loss: 53.35
Target(s): 64.00
Current Option Gain/Loss: Apr55c: + 3.5% & Apr60c: + 7.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: NTES opened down at $56.11 but traders bought the dip near prior resistance and new short-term support around $55.00. I don't see any changes from my prior comments and would still consider new positions now although you may want to use a conditional entry point like only buy calls if both NTES and the S&P 500 open positive.

Earlier Comments:
Our multi-week target is $64.00. FYI: The Point & Figure chart for NTES is bullish with a $68 target.

- Suggested (Small) Positions -

Long Apr $55 call (NTES1221D55) Entry $2.80

- or -

Long Apr $60 call (NTES1221D60) Entry $0.70

Entry on March 20 at $56.11
Earnings Date 05/16/12 (unconfirmed)
Average Daily Volume = 584 thousand
Listed on March 19, 2012


Whole Foods Market - WFM - close: 84.29 change: -0.94

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: -19.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/20 update: WFM is seeing a minor correction that is now into its fourth day. Shares could bounce off the $84.00 level but if the market's major indices continue to slip I suspect we'll see WFM testing the $82.50 area. 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: 63.95 change: -1.94

Stop Loss: 67.25
Target(s): 61.00
Current Option Gain/Loss: (Mar$65P: -82.1%) & Apr$60P: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: AGP underperformed the market with a -2.9% decline today. The stock is hitting new relative lows and appears to be breaking down from its $66-64 range. 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

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: 44.76 change: -1.16

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: - 6.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: CNC also underperformed the market today with a -2.5% decline. The stock also broke down under support near $45.00 and hit our trigger to buy puts at $44.75. I would still consider new positions now.

- Suggested Positions -

Long Apr $45 PUT (CNC1221P45) Entry $1.60

03/20/12 CNC hit our entry trigger at $44.75

Entry on March 20 at $44.75
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 529 thousand
Listed on March 12, 2012


Joy Global, Inc. - JOY - close: 75.92 change: -3.44

Stop Loss: 81.15
Target(s): 72.50
Current Option Gain/Loss: +10.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: JOY produced a dramatic move lower today with a gap down and a spike lower to $74.56 intraday. Shares closed with a -4.3% decline. The move was fueled by rising concerns over a slowdown in China. Yesterday's high was $81.09. I am moving our stop loss down to $81.15. More conservative traders may want to use a stop loss closer to $80.00 instead. Our exit target is $72.50. More aggressive traders could aim for the $70.00 region instead. 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

03/20/12 new stop loss @ 81.15
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: 34.27 change: -0.82

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: +34.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: PPO continues to sink and shares fell another -2.3%. The stock is hitting new 52-week lows. I am not suggesting new positions at this time. If the stock does see a bounce we can look for a new lower low in the $36-37 area.

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


CLOSED BULLISH PLAYS

Clean Harbors, Inc. - CLH - close: 67.73 change: -1.41

Stop Loss: 66.75
Target(s): 71.50
Current Option Gain/Loss: -23.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/20 update: Traders have a choice to make here. We've been worried about CLH for days, ever since the rally stalled at the $70.00 level. Now CLH is underperforming. I am suggesting traders choose between exiting now and cutting our losses or moving your stop loss back under the simple 50-dma. It looks like CLH is moving back to retest its 50-dma again. Aggressive traders willing to handle the risk might want to place their stop loss under $65.00. The 50-dma is currently at $65.87.

I am suggesting we go ahead and exit now. We can always choose to jump back in if we see CLH bounce off technical support again.

- Suggested Positions -

Apr $70 call (CLH1221D70) Entry $1.30, exit $1.00 (-23.0%)

03/20/12 exit early
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.

chart:

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