Editor's Note:

Shares of Airgas Inc. (ARG) have continued to rally and the stock hit our exit target this afternoon. Meanwhile CTSH and ORLY were both triggered. Put plays AGP and CNC were both stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 94.74 change: +1.13

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:
03/26 update: Drug, biotech and healthcare stocks were strong performers on Monday. AGN gapped open higher and hit new highs but shares failed to breakout past the $95.00 level. I don't see any changes from my weekend comments.

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.

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: +75.0% & May$95c: +78.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: ALXN opened lower on Monday but then rallied off the middle of its rising bullish channel and closed near its recent highs. Shares were unable to breakout past round-number resistance at the $95.00 mark.

It was our plan to go ahead and take some money off the table by selling half of our calls at the opening bell this morning. The bid on the April $90 call was $4.40 (+37.5%) and the bid on the May $95 call was $3.50 (+48.9%). Our final exit target remains $98.00. 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

03/26/12 sold half to lock in a gain.
bid on Apr $90 call @ $4.40 (+37.5%)
bid on May $95 call @ $3.50 (+48.9%)
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

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


Check Point Software - CHKP - close: 63.95 change: +1.33

Stop Loss: 59.75
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +54.8% & May65c: +41.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: CHKP rallied to new all-time highs with a +2.1% gain. More conservative traders might want to consider taking profits as CHKP nears potential resistance at the $65.00 level. I am not suggesting new positions at this time.

More conservative traders may want to use a stop under last 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

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: 77.67 change: +1.29

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -2.8% & May$80c: - 5.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: It was a strong day for CTSH. Traders bought the dip near its rising 10-dma again and shares then vaulted to new multi-month highs. Our trigger to buy calls was hit at $77.55. I would still consider new positions now at current levels.

FYI: The Point & Figure chart for CTSH is bullish with a $97 target.

- Suggested Positions -

Long Apr $77.50 call (CTSH1221D77.5) Entry $1.75

- or -

Long May $80 call (CTSH1219E80) Entry $1.95

03/26/12 CTSH hit our entry trigger at $77.55

Entry on March 26 at $77.55
Earnings Date 05/04/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on March 21, 2012


Dollar Tree, Inc. - DLTR - close: 95.82 change: +1.08

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: +24.2% & May95C: +16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: DLTR rallied past resistance near $95.00 and closed at a new record high. Our exit target is $98.50 but more aggressive traders may want to aim higher. 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: 74.80 change: +1.37

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -22.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: GTLS is bouncing off the bottom of its bullish channel. I need to make a correction here. In the weekend update I suggested readers may want to wait for GTLS to trade over $94.00 before launching new bullish positions. That should have said over $74.00, not $94.00. Please note that I am raising the stop loss up to $70.90.

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

03/26/12 new stop loss @ 70.90
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: 71.21 change: +0.47

Stop Loss: 67.75
Target(s): 74.75
Current Option Gain/Loss: -16.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: HLF posted another gain but today's move was disappointing. Shares ailed at resistance near $72.00 again. I am not suggesting new positions at this time. More conservative traders may want to raise their stops.

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: 59.92 change: +0.21

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +92.8% & Apr60c: +178.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: I cautioned readers in recent updates that NTES could find new resistance near $60.00. That's why over the weekend I suggested we go ahead and take some money off the table by selling half of our positions at the open on Monday. Shares of NTES opened higher at $60.12 and eventually settled with a +0.3% gain.

Unfortunately the April $55 call options opened lower on us! The bid on the Apr. $55 call was at $4.70 (+67.8%) and the bid on the Apr. $60 call was $1.95 (+178.5%). 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

03/26/12 sold half at the open.
exit bid on Apr. $55 call @ $0.00 (+67.8%)
exit bid on Apr. $60 call @ $1.95 (+178.5%)
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%)

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


Nu Skin Enterprises - NUS - close: 61.50 change: +0.85

Stop Loss: 58.45
Target(s): 64.50
Current Option Gain/Loss: Apr60c: - 2.1% & May65: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: NUS opened higher at $60.94 and rallied to $62.02 before trimming its gains. Nimble traders could try and wait to buy a dip near $60.00 or its 10-dma if they don't feel like chasing it here.

More conservative traders may want to try a stop at $59.45 instead. FYI: The Point & Figure chart for NUS is bullish with a $78 target.

- Suggested Positions -

Long Apr $60 call (NUS1221D60) Entry $2.30

- or -

Long May $65 call (NUS1219E65) Entry $1.25

Entry on March 26 at $60.94
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 601 thousand
Listed on March 24, 2012


O'Reilly Automotive - ORLY - close: 91.51 change: +1.47

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +00.0% & May$90c: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: Our brand new trade on ORLY has been triggered at $91.25. I would still consider new positions now or you could try and buy a dip near $91.00. FYI: The Point & Figure chart for ORLY is bullish with a $103 target.

- Suggested Positions -

Long Apr $90 call (ORLY1221D90) Entry $2.50

- or -

Long May $90 call (ORLY1219E95) Entry $3.95

03/26/12 triggered at $91.25

Entry on March 26 at $91.25
Earnings Date 04/25/12 (unconfirmed)
Average Daily Volume = 887 thousand
Listed on March 24, 2012


Ulta Salon, Cosmetics - ULTA - close: 94.51 change: +0.96

Stop Loss: 89.45
Target(s): 97.50
Current Option Gain/Loss: +24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: ULTA rallied to another new record high and shares are now testing potential resistance at the $95.00 level. I am not suggesting new positions at this time. We will raise our stop loss to $89.45.

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

03/26/12 new stop loss @ 89.45
03/24/12 adjusted exit target to $97.50
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: 84.66 change: +1.21

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: -22.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/26 update: WFM is bouncing off the bottom of its bullish channel (near the 30-dma). Today's rally over $84.00 could be used as a new bullish entry point.

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

Joy Global, Inc. - JOY - close: 75.63 change: +0.44

Stop Loss: 78.55
Target(s): 73.00
Current Option Gain/Loss: + 1.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: Considering the stock market's widespread gains on Monday readers may want to consider exiting this bearish trade early. The trend is down but it could be tough for JOY to make any progress lower with the market in rally mode. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $75 PUT (JOY1221P75) Entry $2.52

03/26/12 market continues to climb. readers may want to exit JOY early
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


OpenTable, Inc. - OPEN - close: 40.56 change: -0.73

Stop Loss: 42.55
Target(s): 33.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/26 update: OPEN followed the market higher and posted a +2.9% gain. If we see shares close above their 100-dma (currently $42.27) then we'll drop OPEN as a bearish candidate. Currently we're waiting for a breakdown.

Remember, this is a higher-risk trade. Short interest on OPEN is already at 51% of the small 18.3 million share float. The stock could be prone to short squeezes. Plus, there was some speculation last week that OPEN could be a buy-out target for someone looking for exposure to the online restaurant reservation market. Rumors that OPEN could be a takeover target could always spark a short squeeze.

I am suggesting we open small bearish put positions if OPEN trades at $39.65, which would be a new relative low. Our target is $33.00 although readers may want to exit near possible support at the $35.00 level instead. FYI: The Point & Figure chart for OPEN is bearish with a $35 target.

Trigger @ $39.65 (small positions)

- Suggested Positions -

buy the Apr $40 put (OPEN1221P40)

- or -

buy the May $35 PUT (OPEN1219Q35)

Entry on March xx at $ xx.xx
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on March 24, 2012


Polypore Intl. Inc. - PPO - close: 37.49 change: +0.60

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: -54.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: I would seriously consider an early exit out of our PPO put play given the market's strength. Yet PPO still has a bearish trend of lower highs and lower lows - at least for now. A rally past $38.50 will break the shorter-term trend of lower highs.

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

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: 40.98 change: +0.12

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:
03/26 update: SCHN saw a bounce this morning but it quickly reversed near $42 and its 10-dma. 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)

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


CLOSED BULLISH PLAYS

Airgas Inc. - ARG - close: 88.01 change: +1.58

Stop Loss: 83.25
Target(s): 88.00
Current Option Gain/Loss: (Mar82.5c: +45%) & Apr$85c: +148.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: Target achieved. ARG displayed relative strength with a +1.8% gain. The stock hit our exit target at $88.00.

- Suggested Positions -

March position is closed.
Mar $82.50 call (ARG1217C82.5) Entry $1.00, exit $1.45 (+45%)

- or -

Apr $85.00 call (ARG1221D85) Entry $1.25 exit $3.10 (+148.0%)

03/26/12 exit target hit at $88.00
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


CLOSED BEARISH PLAYS

AMERIGROUP Corp. - AGP - close: 66.83 change: +2.28

Stop Loss: 66.55
Target(s): 61.00
Current Option Gain/Loss: (Mar$65P: -82.1%) & Apr$60P: -58.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: The widespread market rally on Monday sent shorts running for cover. AGP surged +3.5% and hit our stop loss at $66.55.

- Suggested Positions -

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

- or -

Apr $60 PUT (AGP1221p60) entry $1.20 exit $0.50 (-58.3%)

03/26/12 stopped out at $66.55
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: 47.90 change: +3.01

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: -59.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/26 update: Healthcare stocks were outperformers today. The HMO healthcare index surged +3.2%. Shares of CNC sprinted higher with a +6.7% gain. The move looks like a short squeeze but the most recent data didn't show a lot of short interest. Our stop loss was hit at $46.25.

It's worth noting that the bottom of its prior channel might be new resistance.

- Suggested Positions -

Apr $45 PUT (CNC1221P45) Entry $1.60 exit $0.65 (-59.3%)

03/26/12 stopped out at $46.25
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