Editor's Note:

We are suggesting readers lock in gains on a couple of our bullish plays. Plus we're updating a few stop losses tonight.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.61 change: +0.05

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:
03/24 update: AGN is still consolidating sideways. We have two different triggers ready to catch the next move. If AGN dips then we want to buy calls on a dip at $90.50 with a stop loss at $89.40. If AGN breaks out higher then we want to buy calls at $95.25 with a stop at $92.25. Our exit target is $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 -

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.

chart:

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: 93.82 change: -0.20

Stop Loss: 89.40
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: +68.7% & May$95c: +70.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: Traders may want to go ahead and take profits in our ALXN trade now. The stock has rallied to the top of its bullish channel. I am suggesting we go ahead and sell at least half of our position now at the opening bell on Monday to lock in a gain. We will raise our stop loss up to $89.40. 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

03/24/12 new stop loss @ 89.40, prepare to sell at least half of our call positions at the open on Monday to lock in a gain.
Apr $90 bid is currently $5.40 (+68.7%)
May $95 bid is currently $4.00 (+70.2%)
03/22/12 new stop loss @ 88.75
03/20/12 triggered at $90.25

chart:

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: 86.43 change: +1.11

Stop Loss: 83.25
Target(s): 88.00
Current Option Gain/Loss: (Mar82.5c: +45%) & Apr$85c: +76.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: Traders bought the dip near ARG's rising 10-dma and the stock rallied to a +1.3% gain, erasing Thursday's decline. I hope I'm not getting greedy here but I am raising our exit target from $87.00 to $88.00. We will raise our stop loss to $83.25. 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

03/24/12 new stop loss @ 83.25, adjust exit target to $88.00
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.

chart:

Entry on February 28 at $82.21
Earnings Date 05/07/12 (unconfirmed)
Average Daily Volume = 528 thousand
Listed on February 23, 2012


Check Point Software - CHKP - close: 62.62 change: +0.62

Stop Loss: 59.75
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: + 6.4% & May65c: + 4.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/24 update: Our new play on CHKP is open. Shares gapped higher on Friday at $62.23 and quickly hit our entry point at $62.25. The stock outperformed the major indices with a +1.0% gain. I would still consider new positions now but nimble traders could look for a dip near $62.00 if you're looking for a new entry point.

More conservative traders may want to use a stop under Thursday's low at $60.77 instead. FYI: The Point & Figure chart for CHKP is bullish with an $88 target.

- Suggested Positions -

Long Apr $62.50 call (CHKP1221D62.5) Entry $1.55

- or -

Long May $65 call (CHKP1219E65) Entry $1.20

03/23/12 CHKP hit our entry trigger @ 62.25

chart:

Entry on March 23 at $62.25
Earnings Date 04/17/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on March 22, 2012


Cognizant Technology - CTSH - close: 76.38 change: +0.01

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:
03/24 update: CTSH remains stuck under resistance at the $77.00 level. Shares tried to rally again on Friday morning but were rebuffed at this resistance. There is no change from my prior comments. 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)

chart:

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: 94.74 change: -0.30

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: - 6.0% & May95C: - 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/24 update: DLTR broke out to new highs past resistance near $94.00 this past week. Yet the stock has struggled to build on that move. Shares did bounce near this new support at $94.00 on Friday morning. I would still consider new bullish positions here but readers may want to use a conditional entry point and only buy calls if both DLTR and the S&P 500 are positive at the open on Monday. 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

chart:

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: 73.43 change: +0.60

Stop Loss: 69.75
Target(s): 79.75
Current Option Gain/Loss: -35.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: If you look at the trading in GTLS this past week the stock has developed a very short-term trend of lower highs. Readers may want to wait for GTLS to rise past $94.00 before initiating new positions.

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

chart:

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: 70.74 change: +0.47

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:
03/24 update: HLF held short-term support near $70.00 on Friday morning. I would consider new positions here but more conservative traders may want to see HLF bounce past $71.00 again before initiating new positions. I 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

chart:

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: 59.71 change: +1.34

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +85.7% & Apr60c: +178.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: NTES continues to power higher and the stock tagged $60.00 for the first time on Friday afternoon. I am suggesting we go ahead and sell half of our call positions at the open on Monday to lock in gains. We'll keep our final exit target at $64.00. We'll also raise our stop loss to $54.45. I am not suggesting new positions at this time.

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

03/24/12 new stop loss @ 54.45.
03/24/12 Prepare to sell half of our positions on Monday to lock in a gain.
Apr $55 call bid currently @ $5.20 (+85.7%)
Apr $60 call bid currently @ $1.95 (+178.5%)
03/22/12 readers may want to go ahead and take profits now
Apr $55 call (+50%), Apr $60 call (+100%)

chart:

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: 93.55 change: -0.04

Stop Loss: 87.90
Target(s): 97.50
Current Option Gain/Loss: +18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: Traders bought the dip near $92.00 on Friday morning and ULTA closed near all-time highs. Aggressive traders could use Friday's bounce as an entry point. I'd prefer to see a bounce in the $90-91 area as a new entry point. Please note that I am adjusting our exit target to $97.50.

Earlier Comments:
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

03/24/12 adjusted exit target to $97.50
03/21/12 ULTA hit our trigger at $91.25

chart:

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: 83.45 change: +0.50

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:
03/24 update: WFM dipped toward its 30-dma and bounced on Friday. Readers may want to use a new rally past $84.00 as a bullish entry point. Cautious traders might want to raise their stop closer to Friday's low (82.48).

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

chart:

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: 64.55 change: +0.50

Stop Loss: 66.55
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:
03/24 update: AGP is little changed with Friday's 50-cent bounce erasing Thursday's decline. As mentioned on Thursday the bounce off Thursday's low is off the simple 100-dma. I remain cautious here. The stock has a bearish trend of lower highs and lower lows but 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

chart:

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: 44.89 change: +0.49

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: -12.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: CNC is bouncing back toward prior support and what should be new resistance near $45.00. Wait for this bounce to fail or stall before considering new bearish put positions.

- Suggested Positions -

Long Apr $45 PUT (CNC1221P45) Entry $1.60

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

chart:

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: 75.19 change: +0.59

Stop Loss: 78.55
Target(s): 73.00
Current Option Gain/Loss: +17.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: JOY regained about a third of Thursday's decline with Friday's 59-cent bounce. If JOY does continue to bounce it should find resistance near the $78.00 level. I also want to remind readers that JOY could find potential support near its December lows. 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.

chart:

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: 36.89 change: +1.24

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/24 update: Ouch! I didn't see any news behind PPO's relative strength and +3.4% gain on Friday. It's probably just a continuation of its oversold bounce that started on Wednesday. The trend of lower lows and lower highs remains intact for now. I'm a little surprised that PPO is not seeing further weakness as fund managers sell the stock so it's not on their end of quarter statements.

Currently we have a stop at $38.65. More conservative traders may want to tighten their stop. I am not suggesting new positions at this time.

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

chart:

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


Schnitzer Steel Industries - SCHN - close: 40.86 change: +0.53

Stop Loss: 42.75
Target(s): 35.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/24 update: SCHN managed a bounce from support near $40.00 on Friday. We are waiting for a breakdown. I am suggesting a trigger to buy puts at $39.75 with a stop loss at $42.75. Our exit target is $35.50. More aggressive traders could aim lower but we do not want to hold over the earnings report on April 5th.

Traders should note that we do want to keep our position size small. The most recent data already list short interest at 8.1% of the very small 24.8 million-share float. Any unexpected bounces in SCHN could spark a short squeeze so we want to limit our exposure.

FYI: The Point & Figure chart for SCHN is still bullish but a breakdown under $40.00 would create a new quadruple bottom breakdown sell signal.

Trigger @ $39.75 (small positions)

- Suggested Positions -

buy the Apr $40 PUT (SCHN1221P40)

chart:

Entry on March xx at $ xx.xx
Earnings Date 04/05/12 (confirmed)
Average Daily Volume = 326 thousand
Listed on March 22, 2012