Editor's Note:

Our new bullish plays (DLTR, ULTA) have been triggered as both stocks display relative strength.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.57 change: +0.40

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:
03/21 update: AGN managed a bounce off its 10-dma but shares struggled with the $94.00 level today. 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: 92.80 change: +2.78

Stop Loss: 87.75
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: +50.0% & May$95c: +53.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: ALXN displayed relative strength with a +3.0% gain and a new record high. I am not suggesting new positions at this time but you could wait for a dip or a bounce near the $90 area as a potential entry point.

- 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: 86.33 change: +0.64

Stop Loss: 81.75
Target(s): 87.00
Current Option Gain/Loss: (Mar82.5c: +45%) & Apr$85c: +68.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: ARG was also showing relative strength with a +0.7% gain. The stock closed at new highs and could hit our exit target at $87.00 soon. More conservative traders may want to take profits now. 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


Dollar Tree, Inc. - DLTR - close: 94.73 change: +0.54

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: + 0.0% & May95C: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/21 update: Our new play on DLTR has been triggered. Shares opened strong and quickly hit our entry point to buy calls at $94.55. The stock rallied to $95.10 intraday before paring its gains. I would still consider new positions now but readers could wait for another dip or a bounce near the $94.00 level as a new entry point. FYI: The Point & Figure chart for DLTR is bullish with a $122 target.

- Suggested Positions -

Long Apr $95 call (DLTR1221D95) Entry $1.65

- or -

Long May $95 call (DLTR1219E95) Entry $3.00

03/21/12 DLTR hit our entry trigger at $94.55

Entry on March 21 at $94.55
Earnings Date 05/17/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on March 20, 2012


Chart Industries - GTLS - close: 74.14 change: +0.22

Stop Loss: 69.75
Target(s): 79.75
Current Option Gain/Loss: -21.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: GTLS is still hovering just above its simple 10-dma. The stock did struggle with the $75.00 level this morning. I don't see any changes from my prior comments. 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: +0.00

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:
03/21 update: HLF continues to drift sideways in a narrow range. The stock actually closed unchanged on Wednesday. I still think there is a good chance we'll see HLF dip toward $70.00 and its 10-dma again.

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: 53.78 change: -0.47

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:
03/21 update: Hmm... IPGP looks like it's breaking down under the cloud of moving averages near the $54.00 level. If shares don't recover soon we'll end up dropping it as a bullish candidate. Currently the plan is to buy calls at $56.25.

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: 76.55 change: -1.17

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:
03/21 update: Energy and oil stocks continue to underperform. LUFK lost -1.5%. If we do not see LUFK recover soon we will likely drop this stock as a bullish candidate with the trade unopened.

Earlier 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: 58.11 change: +1.81

Stop Loss: 53.35
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +46.4% & Apr60c: +85.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: Shares of NTES surged to new highs on positive analyst comments and news the company had renewed its licensing agreement with Blizzard Entertainment to continue operating the incredibly popular "World of Warcraft" video game in China. Blizzard is part of Activision/Blizzard, stock symbol: ATVI. Shares of NTES hit an intraday high of $58.57 and closed up with a +3.2% gain.

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


Ulta Salon, Cosmetics - ULTA - close: 92.07 change: +1.46

Stop Loss: 87.90
Target(s): 96.50
Current Option Gain/Loss: - 3.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: Our new play on ULTA has been triggered. Shares opened at $90.76 and methodically worked its way higher to close at record highs. Our entry point to open positions was hit at $91.25.

Earlier Comments:
Our multi-week target is $96.50. More aggressive traders could aim for the $99-100 zone. FYI: The Point & Figure chart for ULTA is bullish with a $110 target.

- Suggested Positions -

Long Apr $95 call (ULTA1221D95) Entry $1.65

03/21/12 ULTA hit our trigger at $91.25

Entry on March 21 at $91.25
Earnings Date 06/07/12 (unconfirmed)
Average Daily Volume = 759 thousand
Listed on March 20, 2012


Whole Foods Market - WFM - close: 83.97 change: -0.32

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: -23.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/21 update: The correction in WFM continues. Shares are hovering near very short-term support at $84.00. If this continues we can expect WFM to test the $82.50-82.00 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: 64.53 change: +0.58

Stop Loss: 67.25
Target(s): 61.00
Current Option Gain/Loss: (Mar$65P: -82.1%) & Apr$60P: -37.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: There was no follow through on yesterday's drop in AGP. Shares outperformed the major indices with a +0.9% bounce. The trend is still lower but AGP is not moving very fast. 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: 44.70 change: -0.06

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:
03/21 update: CNC did see a little follow through this morning with a drop to $44.12 but the stock bounced back to almost unchanged on the session. Look for a failed rally near $45.00 before launching new bearish positions.

- 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: 76.52 change: +0.60

Stop Loss: 81.15
Target(s): 72.50
Current Option Gain/Loss: - 3.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: JOY is seeing a little bit of an oversold bounce after yesterday's plunge. Shares added +0.8%. 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: 35.60 change: +1.33

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: - 5.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21 update: I could not find any news behind the relative strength in PPO. Shares outperformed with a +3.8% bounce. That could be all it is - an oversold bounce. I don't see any changes from yesterday's update. 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