Editor's Note:

Friday was a relatively quiet end to the week and the quarter but we still had two trades get triggered.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 95.43 change: +0.52

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: - 4.2% & Apr95c: -13.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: AGN ended the quarter on a high note. Actually an all-time high. Shares spiked to $96.39 Friday morning before seeing its gains fade to +0.5% on the session. I am not suggesting new positions at this time. 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.

chart:

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: 63.84 change: -0.06

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +48.3% & May65c: +41.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: CHKP just spent the last week churning sideways at 10-year highs. I am turning more cautious here and we'll raise our stop loss up to $61.40. More aggressive traders may want to leave their stop under $60.00, which should be significant support. I am not suggesting new positions at this time. More conservative trades may want to take profits now. 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

03/31/12 new stop loss @ 61.40
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: 76.95 change: +0.65

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -28.5% & May$80c: -20.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: The intraday bounce that started on Thursday carried over into Friday but CTSH is still trading under recent resistance. Readers may want to wait for a rally past $78.00 before considering 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

chart:

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


Quest Diagnostics Inc. - DGX - close: 61.32 change: +0.87

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/31 update: Friday's midday rally attempt in DGX stalled at $61.50. Shares still look poised to breakout higher if the major indices will cooperate. I don't see any changes from my Thursday night comments.

I am suggesting a trigger to buy calls at $61.55. If triggered we'll use a tight stop under today's low at $59.45. I do want to point out that the 2006 high near $64.70 could be overhead resistance but we are aiming for $66.50. FYI: The Point & Figure chart for DGX is bullish with an $85 target.

Trigger @ 61.55

- Suggested Positions -

buy the Apr $60 call (DGX1221D60)

- or -

buy the May $65 call (DGX1219E65)

chart:

Entry on March xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 821 thousand
Listed on March 29, 2012


Dollar Tree, Inc. - DLTR - close: 94.49 change: +0.04

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -27.2% & May95C: - 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: Friday proved to be a quiet day for DLTR. The stock opened higher and then drifted sideways the rest of the session. The larger trend is up but short-term you could argue DLTR looks poised for a dip back toward the $92.00-90.00 zone. We have a stop at $92.25. I am not suggesting new positions at this time. 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: 73.33 change: -0.14

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: GTLS has spent the last couple of weeks consolidating sideways in a pennant shaped formation. The stock should breakout into the same direction as its preceding trend, which was up. I am a little cautious here. Readers may want to wait for a rally past $75.25 before considering 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

03/26/12 new stop loss @ 70.90
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


J.B.Hunt Transport - JBHT - close: 54.37 change: -0.55

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: -37.0% & May$55c: -27.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: Our JBHT trade was triggered on Friday but I have to caution you, the action on Friday looks bearish. Shares gapped open higher at $55.26 but quickly reversed lower after hitting $55.30. Shares closed down -1.0%, underperforming the major indices. Furthermore, Friday's performance has created a bearish engulfing candlestick reversal pattern.

We had a trigger to buy calls at $55.25 so the gap open at $55.26 opened our play. I would not be surprised to see JBHT retest short-term support near $54.00 and nimble traders could buy a dip near this level. We have a stop at $53.75. I suggest the rest of us wait for a new relative high over $55.30.

FYI: The Point & Figure chart for JBHT is bullish with a $69 target.

- Suggested Positions -

Long Apr $55 call (JBHT1221D55) Entry $1.35

- or -

Long May $55 call (JBHT1219E55) Entry $2.00

chart:

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: 58.10 change: -0.24

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +35.7% & Apr60c: + 42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: NTES saw another spike toward $60 on Friday morning but traders sold the rally and NTES spent the day drifting sideways near $58.00. 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%)

chart:

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: 91.35 change: +0.79

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: -12.0% & May$90c: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: ORLY ended the week on an up note and only inches away from a new record high. We are targeting a move to $98.50 but more conservative traders may want to take profits near $95.00 instead. 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

chart:

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: 54.42 change: -0.03

Stop Loss: 53.40
Target(s): 59.75
Current Option Gain/Loss: Apr55c: -25.7% & May60c: -18.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/31 update: Friday was another quiet session for TRMB. After chopping around in the morning the stock eventually closed nearly unchanged for the session. The stock did trade high enough to hit our entry trigger at $55.15 so the play is open with a stop loss at $53.40. That's a relatively tight stop. More aggressive traders may want to put their stop loss under the $52.00 level, which should be support.

FYI: The Point & Figure chart for TRMB is bullish with a $63 target.

- Suggested Positions -

Long Apr $55 call (TRMB1221D55) Entry $1.28

- or -

Long May $60 call (TRMB1219E60) Entry $0.55

03/30/12 triggered at $55.15
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.

chart:

Entry on March 30 at $55.15
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 522 thousand
Listed on March 27, 2012


Ulta Salon, Cosmetics - ULTA - close: 92.89 change: +0.06

Stop Loss: 89.95
Target(s): 97.50
Current Option Gain/Loss: -39.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: ULTA ended the quarter on a quiet note with a mild drift sideways on Friday. Shares remain inside their narrow, rising channel. I am not suggesting new positions at this time but nimble traders could buy calls on a dip or a bounce near the 20-dma.

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

chart:

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: 100.44 change: +1.63

Stop Loss: 102.25
Target(s): 95.25 or 92.00
Current Option Gain/Loss: Apr95.5p: -42.0% & May95p: -42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: On Thursday I cautioned readers that APA looked ready to bounce toward $100 again. Shares actually outperformed the market with a +1.6% gain and a close above potential resistance at its 100-dma and the $100.00 mark. This is troubling for us since we're long puts. APA should still have resistance near $102 and its simple 200-dma but I am not suggesting new positions at this time.

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

chart:

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: 82.81 change: -0.27

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

Comments:
03/31 update: The IWM gapped open higher on Friday morning but the strength faded. Shares eventually closed down. Lack of follow through on Thursday's intraday bounce is good news if you're bearish. 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

chart:

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


OpenTable, Inc. - OPEN - close: 40.47 change: +0.04

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:
03/31 update: OPEN saw a temporary dip under support at $40.00 but shares only fell as low as $39.80. The stock definitely looks poised 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)

chart:

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: 35.16 change: +0.05

Stop Loss: 38.05
Target(s): 31.00
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: PPO tried to rally twice, midday on Friday, and both times it failed near the 20-dma. This new lower high is good news if you're bearish like we are. 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

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: 39.90 change: -0.11

Stop Loss: 42.25
Target(s): 35.50
Current Option Gain/Loss: - 8.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/31 update: Friday was a relatively calm session for SCHN. The stock spent most of the day drifting sideways in a 40-cent range. I would still consider new positions now or you could wait for a new drop under $39.50 as your entry point.

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. We will plan to exit on April 4th at the closing bell if SCHN has not hit our target (or stop) by then.

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

chart:

Entry on March 29 at $39.75
Earnings Date 04/05/12 (confirmed)
Average Daily Volume = 326 thousand
Listed on March 22, 2012