Editor's Note:

We are dropping a couple of unopened trades. Meanwhile some of our bullish candidates continue to show relative strength.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.56 change: -0.01

Stop Loss: see below
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/22 update: Our AGN is still not open yet. Shares gapped down at the open but rallied off short-term support near $92.50. The stock bounced back to close almost unchanged on the session.

I am adjusting our entry point strategy. If the market really corrects then AGN could easily retest the $90.00 level of support. We will adjust our buy-the-dip trigger down to $90.50 with a stop loss at $89.40. However, if the market does not correct then I would expect AGN to breakout and rally toward $100. We will set an alternative breakout trigger to buy calls at $95.25 with a stop loss at $92.25. We will adjust our target to $99.50.

FYI: The Point & Figure chart for AGN is bullish with a $110 target.

NEW buy-the-dip trigger @ 90.50, stop loss @ 89.40

- or -

New Breakout trigger @ 95.25, stop loss @ 92.25

- Suggested Positions -

buy the Apr $92.50 call (AGN1221D92.5)

- or -

buy the Apr $95 call (AGN1221D95)

03/22/12 adjusted entry point strategy to include a buy-the-dip trigger at $90.50 and a breakout trigger at $95.25.
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: 94.02 change: +1.22

Stop Loss: 88.75
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: +75.0% & May$95c: +78.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: ALXN continues to show relative strength in spite of broader market weakness. More conservative traders may want to start taking profits as ALXN nears potential resistance at the $95.00 level. I am raising our stop loss to $88.75. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $90 call (ALXN1221D90) Entry $3.20

- or -

Long May $95 call (ALXN1219E95) Entry $2.35

03/22/12 new stop loss @ 88.75
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: 85.32 change: -1.01

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:
03/22 update: ARG hit some profit taking today with a gap down at the open and a -1.1% decline at the closing bell. I don't see any changes from my prior comments. 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


Cognizant Technology - CTSH - close: 76.37 change: -0.57

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/22 update: CTSH also gapped down at the open but was slowly drifting higher off its morning lows. We are waiting for a breakout. CTSH has short-term resistance in the $77.00-77.40 area. I am suggesting we buy calls at $77.55 with a stop loss at $74.75. Our exit target is $82.00. FYI: The Point & Figure chart for CTSH is bullish with a $97 target.

Trigger @ $77.55

- Suggested Positions -

buy the Apr $77.50 call (CTSH1221D77.5)

- or -

buy the May $80 call (CTSH1219E80)

Entry on March xx at $ xx.xx
Earnings Date 05/04/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 21, 2012


Dollar Tree, Inc. - DLTR - close: 95.04 change: +0.31

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: + 9.0% & May95C: + 6.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/22 update: DLTR rallied off its opening gap lower and hit a new high at $95.55 before paring its gains. Considering the market's recent weakness readers may want to wait for a dip or a bounce near the $94.00 level before considering new bullish positions in DLTR. 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: 72.83 change: -1.31

Stop Loss: 69.75
Target(s): 79.75
Current Option Gain/Loss: -38.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: GTLS was not immune to the mostly market-wide profit taking today. Yet shares did find support intraday as traders bought the dip twice in the $71.25-71.50 zone (also near its rising 20-dma). I would use this as a new bullish entry point but only if both GTLS and the S&P 500 index open positive tomorrow.

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: 70.27 change: -0.86

Stop Loss: 67.75
Target(s): 74.75
Current Option Gain/Loss: -20.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: We have been expecting HLF to dip toward the $70.00 level. This should be round-number support but if the market starts accelerating lower I doubt $70 will hold. Technically readers could buy this dip or a bounce from this level but you may want to raise your stop loss. I still see additional support near $68.00 so we want to keep our stop under $68 for now.

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


NetEase.com - NTES - close: 58.37 change: +0.26

Stop Loss: 53.35
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +50.0% & Apr60c: +100.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: NTES hit a new high this afternoon at $59.26 before paring its gains. Shares are arguably short-term overbought. We should expect some profit taking if the broader market continues to sink. The closest support for NTES is either the simple 10-dma near $55.65 or the $55.00 level. I am not suggesting new positions at this time. More conservative traders may want to take profits now!

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

03/22/12 readers may want to go ahead and take profits now
Apr $55 call (+50%), Apr $60 call (+100%)

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: 93.59 change: +1.52

Stop Loss: 87.90
Target(s): 96.50
Current Option Gain/Loss: +24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: ULTA continues to show relative strength. The stock rallied to another new high with today's +1.6% gain. I am not suggesting new positions at this time.

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: 82.95 change: -1.02

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: -46.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/22 update: The correction/consolidation in WFM is now seven days old. Today's -1.2% decline has left WFM testing the bottom of its bullish channel. More conservative traders may want to raise their stops toward the 30-dma near $82.47. I am not suggesting new positions at this time but aggressive traders could buy a bounce from current levels.

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: 64.05 change: -0.48

Stop Loss: 66.55
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:
03/22 update: AGP is still struggling to make progress as a bearish candidate. The stock hit new relative lows today but it bounced sharply off its intraday low. Furthermore today's low is near technical support at the simple 100-dma. The bounce may not be over yet. I am adjusting our stop loss down to $66.55. 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

03/22/12 new stop loss @ 66.55
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: 44.40 change: -0.30

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: + 3.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: CNC tagged a new relative low near $44.00 this morning. Shares pared their losses and ended the session down -0.6%. I am not suggesting new positions at this time.

- 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: 74.60 change: -1.92

Stop Loss: 78.55
Target(s): 73.00
Current Option Gain/Loss: +36.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: JOY sank to new ten-week lows this afternoon. Today's close under potential round-number support at $75.00 is a good sign for the bears. Now the challenge for the bears is the December 2011 lows with prior support near $74.00 and the $72.60 levels.

Please note that I am adjusting our exit price to $73.00 and our stop loss down to $78.55. More aggressive traders may want to aim for the $70.00 area. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $75 PUT (JOY1221P75) Entry $2.52

03/22/12 new stop loss @ 78.55, adjust exit to $73.00
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: 35.65 change: +0.05

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: -11.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/22 update: It was a quiet day for PPO. The morning weakness was not that bad and shares slowly drifted higher all day long. The larger trend is down. I am not suggesting new positions at this time. If the stock does see a bounce we can look for a new lower high 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

IPG Photonics Corp. - IPGP - close: 52.81 change: -0.97

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:
03/22 update: IPGP continues to underperform. The stock is now under both its 50-dma and its 200-dma. The stock might find support near $50.00. Nimble trades could try buying a dip or a bounce near $50 with a tight stop loss. It is unlikely that IPGP will hit our bullish trigger to buy calls at $56.25 any time soon so I am dropping the stock as a candidate.

Trigger @ $56.25

Our Trade Never Opened.

03/22/12 our trade never opened. IPGP has been removed from the newsletter

chart:

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: 74.24 change: -2.31

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:
03/22 update: LUFK is not cooperating either. The oil and energy sector has been sinking recently. LUFK is breaking down to new relative lows. You could argue that this stock has created a bearish head-and-shoulders pattern over the last six or seven weeks and today broke the neckline. It is very unlikely that LUFK will hit our bullish trigger to buy calls at $80.75 soon so I am removing it from the play list.

Trigger @ $80.75

Our Trade Did Not Open.

03/22/12 LUFK is removed from the newsletter

chart:

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