Editor's Note:

The stock market's major indices bounced off their Thursday lows but the morning drop was enough to trigger some stop losses. COST, HLF, NUS, and WFM were stopped out. I am dropping UA as a candidate. Meanwhile SCHN was triggered.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 94.94 change: +0.89

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -12.6% & Apr95c: -21.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: Positive analyst comments helped AGN rally this morning. The stock closed up +0.9%. We have a stop loss at $92.25. More conservative traders may want to up their stop closer to the $93.00 level.

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: 63.90 change: +0.64

Stop Loss: 59.75
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +51.6% & May65c: +45.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: CHKP was also showing relative strength today with a +1% gain. The next obstacle the bulls need to overcome is resistance in the $64.60-64.70 area.

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: 76.30 change: -0.10

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -42.8% & May$80c: -30.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: CTSH dipped to $75.41 intraday before bouncing back and trimming its loss to just 10 cents. I would hesitate to launch new positions here.

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: 94.40 change: -0.20

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -27.2% & May95C: -10.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: DLTR spent Thursday churning sideways on either side of the $94.00 level. I am not suggesting new positions at this time. 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: 73.54 change: -0.04

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: GTLS found support near $72.00 for the second day in a row. Overall it was a relatively quiet session. I don't see any changes from my prior comments. 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


J.B.Hunt Transport - JBHT - close: 54.92 change: +0.05

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/29 update: Traders bought the dip in JBHT near $54 this morning but shares remain under resistance near $55.00.

I am suggesting a trigger to buy calls at $55.25 with a stop at $53.75. Our multi-week target is $59.50. FYI: The Point & Figure chart for JBHT is bullish with a $69 target.

Trigger @ $55.25

- Suggested Positions -

buy the Apr $55 call (JBHT1221D55)

- or -

buy the May $55 call (JBHT1219E55)

Entry on March xx at $ xx.xx
Earnings Date 04/12/12 (unconfirmed)
Average Daily Volume = 729 thousand
Listed on March 28, 2012


NetEase.com - NTES - close: 58.34 change: -1.05

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +42.8% & Apr60c: + 71.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: NTES was hit with some profit taking this morning. Shares fell to $57.03 but dip buying pared its losses to -1.7%. I don't see any changes from my prior comments. 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


O'Reilly Automotive - ORLY - close: 90.56 change: -0.13

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: -32.0% & May$90c: -16.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: ORLY traded under the $90.00 level a few times today but shares managed to bounce back by the closing bell. At this point readers may want to wait for a new rise past $91.00 before considering new bullish positions. 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: 54.45 change: +0.12

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:
03/29 update: It was a relatively quiet day for TRMB. Shares did manage to show some strength with a +0.2% gain. We have a trigger to buy calls at $55.15.

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


Ulta Salon, Cosmetics - ULTA - close: 92.83 change: -0.76

Stop Loss: 89.95
Target(s): 97.50
Current Option Gain/Loss: -36.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: ULTA dipped under its 10-dma this time but once again traders were buying the dip this afternoon. ULTA remains inside its narrow rising channel. 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

03/28/12 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


PUT Play Updates

Apache Corp. - APA - close: 98.81 change: -0.17

Stop Loss: 102.25
Target(s): 95.25 or 92.00
Current Option Gain/Loss: Apr95.5p: -11.6% & May95p: - 9.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: APA opened at $98.32 and sank to $97.14 before bouncing near its simple 150-dma. I would expect this little oversold bounce to carry APA back toward the $100 level, which should be new resistance.

Earlier Comments:
I am setting two different targets. You can choose to aim for $95.25 or $92.00.

- Suggested Positions -

Long Apr $97.50 PUT (APA1221P97.5) Entry $2.40

- or -

Long May $95 PUT (APA1219Q95) Entry $2.90

Entry on March 29 at $98.32
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on March 28, 2012


iShares Russell 2000 ETF - IWM - close: 83.08 change: -0.24

Stop Loss: 87.51
Target(s): 78.50
Current Option Gain/Loss: - 3.8%
Time Frame: several weeks
New Positions: see below

Comments:
03/29 update: IWM dipped to short-term technical support near its 30 and 40-dma (around $82) before bouncing back. The ETF ended the session down -0.2%. I am not suggesting new positions at this time.

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: 40.43 change: -1.35

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:
03/29 update: OPEN is slipping closer and closer to support near $40.00. 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: 35.11 change: -0.80

Stop Loss: 38.05
Target(s): 31.00
Current Option Gain/Loss: - 8.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: PPO continues to roll over and is now down three days in a row. Shares are nearing potential short-term support at its low two weeks ago near $34.00. 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: 42.25
Target(s): 35.50
Current Option Gain/Loss: - 1.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: Our SCHN put play is now open. Shares broke down under support at $40.00 on an intraday basis and hit our trigger to buy puts at $39.75. The bounce back and close at $40.00 is a little disappointing if you're bearish but the trend is down.

I am lowering our stop loss down to $42.25. Remember, we don't have a lot of time. SCHN is due to report earnings on April 5th and we do not want to hold over the announcement.

FYI: The P&F chart has turned bearish with a brand new quadruple bottom breakdown sell signal (and a $32 price target).

Earlier Comments:
Traders should note that we want to use small positions. 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.

(small positions) - Suggested Positions -

Long Apr $40 PUT (SCHN1221P40) Entry $1.58

03/29/12 new stop loss @ 42.25
03/29/12 triggered at $39.75

Entry on March 29 at $42.25
Earnings Date 04/05/12 (confirmed)
Average Daily Volume = 326 thousand
Listed on March 22, 2012


CLOSED BULLISH PLAYS

Costco Wholesale - COST - close: 89.84 change: -0.78

Stop Loss: 89.75
Target(s): 97.50
Current Option Gain/Loss: Apr90c: -53.9% & May$95c: -63.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: After Tuesday's failed rally COST has continued to sink and shares broke down to new relative lows. The stock hit our stop loss at $89.75.

- Suggested Positions -

Apr $90 call (COST1221D90) Entry $2.28 exit $1.05 (-53.9%)

- or -

May $95 call (COST1221E95) Entry $0.71 exit $0.26 (-63.3%)

03/29/12 stopped out at $89.75
03/27/12 triggered at $91.75

chart:

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


Herbalife Ltd. - HLF - close: 69.27 change: -0.90

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: -46.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/29 update: It is definitely starting to look like a bearish reversal in HLF. The stock underperformed again. Today saw a -1.2% decline. Shares hit our stop loss at $69.40. If HLF breaks support near $68 then the next level of support is $65.00.

- Suggested Positions -

Apr $70 call (HLF1221D70) Entry $3.10 exit $1.65 (-46.7%)

03/29/12 stopped out at $69.40
03/28/12 new stop loss @ 69.40

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


Nu Skin Enterprises - NUS - close: 58.57 change: -0.89

Stop Loss: 58.45
Target(s): 64.50
Current Option Gain/Loss: Apr60c: -65.2% & May65: -72.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: It was an ugly day for NUS. Shares gapped open lower at $58.58 and then spiked down toward $56.00 before seeing a sharp bounce back. Shares still lost -1.5% by the closing bell. Oddly enough I could not find any specific news to explain the gap down and spike lower. We have been warning readers the previous two days that the trading action in NUS was turning bearish. Last night we actually decided to exit early but NUS gapped open lower underneath our new stop loss.

- Suggested Positions -

Apr $60 call (NUS1221D60) Entry $2.30 exit $0.80 (-65.2%)

- or -

May $65 call (NUS1219E65) Entry $1.25 exit $0.35 (-72.0%)

03/29/12 stopped out. NUS gapped open lower, under our stop loss.
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.

chart:

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


Under Armour, Inc. - UA - close: 94.06 change: -1.82

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:
03/29 update: UA continues to underperform. The stock spiked down to $91.65 intraday. It is unlikely that UA will hit our bullish trigger to buy calls at $100.25 any time soon. I am removing UA as a candidate.

Trigger @ $100.25

Our Trade Did Not Open

chart:

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


Whole Foods Market - WFM - close: 82.61 change: -2.98

Stop Loss: 82.40
Target(s): 87.50
Current Option Gain/Loss: -63.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/29 update: Yesterday WFM was showing relative strength. Today that strength vanished and shares plunged -3.4%. Our stop loss was hit at $82.40. The move lower was caused by a downgrade to "neutral" by Goldman Sachs.

- Suggested Positions -

Apr $85 call (WFM1221D85) Entry $1.88 exit $0.69 (-63.2%)

03/29/12 downgraded by GS. WFM hits our stop
03/28/12 new stop loss @ 82.40
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