Editor's Note:

Shares of JOY have continue to sink and shares hit our exit target today. Meanwhile ALXN spiked lower on no news and hit our stop loss.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 94.05 change: -0.26

Stop Loss: see below
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -25.3% & Apr95c: -35.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: AGN spent the session drifting lower but shares have now filled the gap from Monday morning. We can use a bounce off the $94.00 level as a new bullish entry point. 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


Check Point Software - CHKP - close: 63.26 change: -0.21

Stop Loss: 59.75
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +25.8% & May65c: +20.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: CHKP saw a morning spike to a new high but shares quickly reversed. The stock ended the session off -0.3%. I warned readers to look for a dip toward $63 or $62. I'm not convinced the pullback is over yet. 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: 90.62 change: -0.66

Stop Loss: 89.75
Target(s): 97.50
Current Option Gain/Loss: Apr90c: -31.1% & May$95c: -42.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: The stock market's widespread dip on Wednesday pulled COST toward round-number support at $90.00. Traders can use this dip as a new entry point. More conservative traders may want to wait for a rise past $92.00 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: 76.40 change: -1.01

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -40.0% & May$80c: -28.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: CTSH underperformed the NASDAQ with a -1.3% decline today. Trades were starting to buy the dip near $76.00 this afternoon. More conservative traders may want to raise their stop loss closer to the $76.00 level. I am not suggesting new positions at this time. The close under its simple 10-dma is short-term bearish.

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: 94.60 change: -1.05

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -21.2% & May95C: - 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: A better than expected earnings report from rival Family Dollar Store (FDO) failed to have much influence on shares of DLTR. DLTR dipped toward support near $94.00 and bounced. Previously I suggested that nimble traders may want to buy calls on a dip near $94.00 so here's your chance. More conservative traders may want to raise their stop loss closer to today's low (93.92). 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: 73.58 change: -1.05

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: GTLS dipped toward $72.00 and its 20-dma before bouncing back and trimming its losses to -1.4%. Shares seemed to struggle with the $74.00 level late this afternoon. Currently we have a stop loss at $70.90. More aggressive traders may want to place their stop under $70.00, which should be round-number, psychological support. However, if GTLS trades under $71.00 it will look like a bearish H&S pattern has formed over the last three weeks. I am not suggesting new positions at this time.

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: 70.17 change: -1.23

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: -35.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: Trading in HLF today looked a little ugly with a breakdown under $70.00 intraday. While shares should have support near $68.00 we are raising our stop loss to $69.40. The stock bounced twice near $69.60 midday.

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

03/28/12 new stop loss @ 69.40

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: 59.39 change: -0.03

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +71.4% & Apr60c: + 95.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: NTES was relatively resistant to profit taking today and shares almost closed unchanged on the session. This may be due to fund managers window dressing their portfolio with NTES ahead of the quarter end on Friday. 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: 59.46 change: -1.30

Stop Loss: 58.45
Target(s): 64.50
Current Option Gain/Loss: Apr60c: -52.1% & May65: -48.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: Warning! The action in NUS the last two days is bearish. Yesterday the stock failed at resistance near $62.00 and produced a bearish reversal candlestick pattern. Today's drop not only confirms the breakdown but NUS broke below the $60.00 level, which should have been short-term support.

Readers may want to exit immediately. I am raising our stop loss to $58.65 and we will plan to exit this trade tomorrow at the closing bell (assuming NUS hasn't hit our stop).

- Suggested Positions -

Long Apr $60 call (NUS1221D60) Entry $2.30

- or -

Long May $65 call (NUS1219E65) Entry $1.25

03/28/12 new stop loss @ 58.65, prepare to exit tomorrow at the closing bell.
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: 90.69 change: -0.58

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: -26.0% & May$90c: -13.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: ORLY dipped toward support near $90.00 and started to rebound this afternoon. I see this late day bounce as a new bullish entry point. More conservative traders might want to consider raising their stop loss closer to the $90 level. 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


Trimble Navigation - TRMB - close: 55.43 change: +0.57

Stop Loss: 53.40
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/28 update: Our new TRMB trade is not open yet. It was a close call though since TRMB opened positive but the S&P 500 opened flat. I am adjusting our entry point strategy on TRMB. We will use a trigger to buy calls at $55.15 and we'll move our stop loss higher to $53.40. FYI: The Point & Figure chart for TRMB is bullish with a $63 target.

New Trigger to buy calls @ 55.15, stop @ 53.40

- Suggested Positions -

buy the Apr $55 call (TRMB1221D55)

- or -

buy the May $60 call (TRMB1219E60)

03/28/12 adjust entry strategy to use a trigger at $55.15 with a stop loss at $53.40
03/28/12 trade did not open.

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 522 thousand
Listed on March 27, 2012

Under Armour, Inc. - UA - close: 95.88 change: -1.72

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:
03/28 update: UA suffered a second day of profit taking. Aggressive traders could buy the late day bounce and use a stop loss under $94.00 as an alternative entry strategy. I am sticking to our original plan and we'll wait for UA to hit our trigger at $100.25 for now. 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: 93.59 change: -0.38

Stop Loss: 89.95
Target(s): 97.50
Current Option Gain/Loss: -21.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: The intraday bounce in ULTA looks like a new bullish entry point. Shares dipped toward short-term support near $92.00 and its 10-dma before bouncing back and trimming its losses to -0.4%. Cautious traders may want to move their stop loss closer to $92.00. I am upping our stop to $89.95.

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

03/28/12 new stop loss @ 89.95
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: 85.59 change: +1.45

Stop Loss: 82.40
Target(s): 87.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/28 update: WFM soared higher this morning and traders bought the dip midday. The stock outperformed with a +1.7% gain and a new breakout above the $85.00 level. The March 23rd low was $82.48. I am moving our stop loss higher to $82.40.

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

03/28/12 new stop loss @ 82.40
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

iShares Russell 2000 ETF - IWM - close: 83.32 change: -0.49

Stop Loss: 87.51
Target(s): 78.50
Current Option Gain/Loss: - 0.0%
Time Frame: several weeks
New Positions: see below

Comments:
03/28 update: Our new IWM put play has been triggered at $83.45. The ETF did find support near $82.60 this afternoon. I would not be surprised to see a little bounce tomorrow morning.

Our exit target is $78.50 near the early March lows.

- Suggested Positions -

Long Jun $82 PUT (IWM1216R82) Entry $3.12

03/28/12 triggered at $83.45

Entry on March 28 at $83.45
Earnings Date --/--/--
Average Daily Volume = 54.8 million
Listed on March 27, 2012


OpenTable, Inc. - OPEN - close: 41.78 change: -0.31

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:
03/28 update: There is no change from my prior comments on OPEN. 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: 35.91 change: -0.94

Stop Loss: 38.05
Target(s): 31.00
Current Option Gain/Loss: -28.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: Shares of PPO continue to rollover. I am adjusting our stop loss down to $38.05. 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

03/28/12 new stop loss @ 38.05

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: 40.20 change: -0.38

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:
03/28 update: SCHN is flirting with a breakdown under significant support near $40.00. Shares hit $39.88 intraday. Our trigger to open positions is at $39.75. 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

Alexion Pharma - ALXN - close: 90.22 change: -3.06

Stop Loss: 89.40
Target(s): 98.00
Current Option Gain/Loss: Apr$90c: -12.5% & May$95c: -61.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: Ouch! That's pretty frustrating when our play, which had options up +50%, suddenly plunges on no news. I could not find any headline or rumor to account for a minus five point loss (about -5.2%) in three minutes (just before 11:00 a.m.).

ALXN broke down under round-number support near $90 and hit $87.03 near its 30-dma before paring its losses. Our stop loss was hit at $89.40.

- Suggested Positions -

Apr $90 call (ALXN1221D90) Entry $3.20 exit $2.80 (-12.5%)

- or -

May $95 call (ALXN1219E95) Entry $2.35 exit $0.90 (-61.7%)

03/28/12 stopped out. ALXN plunges on no news. hit stop @ 89.40
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

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


CLOSED BEARISH PLAYS

Joy Global, Inc. - JOY - close: 71.43 change: -2.44

Stop Loss: 77.55
Target(s): 73.00
Current Option Gain/Loss: +54.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/28 update: Last night I suggested that more aggressive traders may want to aim for an exit in the $70.50-70.00 zone. Shares of JOY gapped open lower at $73.30 and then plunged to $70.14 before paring its losses. Our trade was closed at $73.00.

- Suggested Positions -

Long Apr $75 PUT (JOY1221P75) Entry $2.52 exit $3.90 (+54.7%)

03/28/12 exit target hit at $73.00
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.

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