Editor's Note:

The U.S. markets were relatively quiet on Tuesday with stocks fading from their morning highs. We did see both AGN and COST hit our entry triggers.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 94.31 change: -0.43

Stop Loss: see below
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -18.3% & Apr95c: -13.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: AGN spiked higher this morning and rallied past resistance near $95.00 but the rally didn't last. Shares reversed and closed down -0.4%. Unfortunately our bullish trigger was hit at $95.25 so the play is open. Readers may want to wait for a bounce off the $94.00 level before considering new bullish positions. Our exit target is $99.50.

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

- Suggested Positions -

Long Apr $92.50 call (AGN1221D92.5) Entry $3.55

- or -

Long Apr $95 call (AGN1221D95) Entry $1.85

03/27/12 AGN hit our breakout trigger at $95.25
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 27 at $95.25
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on March 13, 2012


Alexion Pharma - ALXN - close: 93.28 change: -1.03

Stop Loss: 89.40
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: +50.0% & May$95c: +48.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: ALXN hit some profit taking today with a -1.0% decline versus a -0.07% drop in the NASDAQ and a -0.5% pullback in the biotech index. Readers can look for likely short-term support near $92.00 and its 10-dma. 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: 63.47 change: -0.48

Stop Loss: 59.75
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +35.4% & May65c: +29.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: CHKP spiked to a new relative high this morning at $64.46 and then reversed. I would not be surprised to see a dip toward $63.00 or the $62.00 level if the market slips again tomorrow. 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


Costco Wholesale - COST - close: 91.28 change: -0.24

Stop Loss: 89.75
Target(s): 97.50
Current Option Gain/Loss: Apr90c: -11.4% & May$95c: -23.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: Hmm.... it was not very convincing but shares of COST did hit new highs this morning at $91.78. That was just enough to hit our trigger to buy calls at $91.75. The stock immediately reversed lower and spent the rest of the day churning sideways in a narrow range. At this time, given today's failed rally, I would wait for a rise pat $92.00 before initiating new positions or you could buy a dip near $90.00 instead. FYI: The Point & Figure chart for COST is bullish with a $116 target.

- Suggested Positions -

Long Apr $90 call (COST1221D90) Entry $2.28

- or -

Long May $95 call (COST1221E95) Entry $0.71

03/27/12 triggered at $91.75

Entry on March 27 at $91.75
Earnings Date 05/24/12 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on March 26, 2012


Cognizant Technology - CTSH - close: 77.41 change: -0.26

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -11.4% & May$80c: -10.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: CTSH tagged $78.00 for the first time in months and then spent the rest of the day drifting sideways in a narrow range. If both CTSH and the S&P 500 index open positive tomorrow then I would consider new bullish positions.

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: 95.65 change: -0.17

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: +15.1% & May95C: +13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: DLTR spent another day drifting sideways along the $95.00 level. Nimble traders could buy calls on a dip near $94.00. 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: 74.63 change: -0.17

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -25.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: Tuesday proved to be a very quiet day for GTLS with the stock trading in a narrow range. I don't see any changes from my prior comments.

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: 71.40 change: +0.19

Stop Loss: 67.75
Target(s): 74.75
Current Option Gain/Loss: -12.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: HLF continues to churn sideways under resistance at the $72.00 level. Traders could use a breakout past $72.00 as a new entry point but you may want to aim past our target of $74.75. 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: 59.42 change: -0.50

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +75.0% & Apr60c: +142.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: A downgrade before the opening bell pushed NTES to gap lower at the open but the stock immediately bounced. Unfortunately NTES can't seem to get past resistance near $60.00. Given this struggle at the $60 level more conservative traders may want to exit immediately. If NTES corrects it could easily drop toward the $56-55 area. 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: 60.76 change: -0.74

Stop Loss: 58.45
Target(s): 64.50
Current Option Gain/Loss: Apr60c: -21.7% & May65: -28.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: The action in NUS today was not encouraging. Not only did shares fail at the $62.00 level for the third time in two days but today's performance also created a bearish engulfing candlestick reversal pattern. Now I am still expecting short-term support at $60.00 but more conservative traders may want to tighten their stop loss. At this point I'd wait for a bounce off $60 before considering new positions.

- Suggested Positions -

Long Apr $60 call (NUS1221D60) Entry $2.30

- or -

Long May $65 call (NUS1219E65) Entry $1.25

03/27/12 NUS created a bearish reversal candlestick. Let's see if there is any confirmation.

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: 91.27 change: -0.24

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: - 8.0% & May$90c: - 6.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: It was a quiet day for ORLY but shares did provide us another entry point with the dip to $90.63 intraday. 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


Under Armour, Inc. - UA - close: 97.60 change: -1.36

Stop Loss: 94.90
Target(s): 104.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/27 update: UA hit some profit taking and gave up -1.3%. Nimble traders might want to consider buying calls on a dip or a bounce near the $96.00-95.00 area. I am suggesting readers wait for a breakout with a trigger to buy calls at $100.25. We are starting this trade with a wide stop loss so readers may want to keep their position size small.

Trigger @ $100.25

- Suggested Positions -

buy the Apr $100 call (UA1221D100)

- or -

buy the May $105 call (UA1219E105)

Entry on March xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on March 26, 2012


Ulta Salon, Cosmetics - ULTA - close: 93.97 change: -0.54

Stop Loss: 89.45
Target(s): 97.50
Current Option Gain/Loss: +12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: ULTA also delivered a quiet session with shares drifting sideways. I am not suggesting new positions at this time.

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: 84.14 change: -0.52

Stop Loss: 81.75
Target(s): 87.50
Current Option Gain/Loss: -36.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/27 update: WFM gave up about half of yesterday's gains but the stock is trying to find support near $84.00 again.

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: 73.87 change: -1.76

Stop Loss: 77.55
Target(s): 73.00
Current Option Gain/Loss: +30.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: JOY continues to underperform the market and shares lost -2.3% today closing at new relative lows. Currently our exit target is $73.00. More aggressive trades may want to aim for the $70.50-70.00 zone instead. We will lower our stop loss to $77.55. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $75 PUT (JOY1221P75) Entry $2.52

03/27/12 new stop loss @ 77.55
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: 42.09 change: +0.33

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:
03/27 update: OPEN was showing some relative strength this morning but gains faded late this afternoon. 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: 36.85 change: -0.64

Stop Loss: 38.65
Target(s): 31.00
Current Option Gain/Loss: -45.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/27 update: The latest oversold bounce in PPO might be over. Shares erased yesterday's gains. Aggressive traders could buy puts now and use stop near the $38.00 level.

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: 40.58 change: -0.40

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:
03/27 update: The oversold bounce in SCHN is also fading. Shares are headed for support near $40.00 again. 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