Editor's Note:

The market's rally continues as we launch into the second quarter of 2012.

Our DGX and OPEN trades were triggered. TRMB was stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 95.17 change: -0.26

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -12.6% & Apr95c: -24.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: AGN was downgraded this morning, which helped account for the gap down. Shares spiked toward short-term support near $94.00 and bounced again. 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.

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: 64.52 change: +0.68

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +74.1% & May65c: +62.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: CHKP displayed some relative strength with a +1.0% gain and a rise toward last week's highs. I don't see any changes from my weekend comments. 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

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: 77.01 change: +0.06

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -34.2% & May$80c: -23.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: CTSH bounced between $76 and 78 this morning to settle almost unchanged on the session. 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

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: 62.00 change: +0.85

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Apr60c: - 1.9% & May65c: + 7.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: Our new play on DGX is open. Shares hit our trigger to buy calls at $61.55. The stock closed at new two-year highs.

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.

- Suggested Positions -

Long Apr $60 call (DGX1221D60) Entry $2.60

- or -

Long May $65 call (DGX1219E65) Entry $0.70

04/02/12 triggered at $61.55

Entry on April 02 at $61.55
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 821 thousand
Listed on March 29, 2012


Dollar Tree, Inc. - DLTR - close: 94.96 change: +0.47

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -15.1% & May95C: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: DLTR spent the day churning sideways but settled with a +0.49% gain. 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

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: 72.99 change: -0.34

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -58.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: At the closing bell tonight GTLS announced a price increase for some of its products. This could be seen as bullish since management needs to feel confident about their business to raise prices. Shares of GTLS didn't move much during the normal session and continue to test support near $72.00 . 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

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: 55.12 change: +0.75

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: -14.8% & May$55c: -15.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: Good news! There was no follow through on Friday's bearish candlestick pattern. Traders bought the dip early this morning and JBHT actually hit a new high this afternoon before paring its gains.

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

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: 59.91 change: +1.81

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +85.7% & Apr60c: +150.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: NTES displayed relative strength on Monday with a +3.1% rally and a rise toward recent round-number resistance at $60.00. Aggressive traders could use a rally past $60.50 as a new bullish entry point (but you'll need to adjust your stop loss higher).

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: 92.86 change: +1.51

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +28.0% & May$90c: +18.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: ORLY is starting the new quarter off on a strong note with a +1.6% gain and a close at new highs. The breakout past the $92.00 level is also bullish. 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

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


PNC Financial Services - PNC - close: 64.72 change: +0.23

Stop Loss: 62.75
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: up to its April 18th earnings report
New Positions: Yes, see below

Comments:
04/02 update: PNC inched higher this afternoon but shares have not yet broken out past resistance near $65.00. I am suggesting a trigger to buy calls at $65.25 with a stop loss at $62.75. Our target is $69.50. However, we will plan to exit prior to the April 18th earnings report. FYI: The Point & Figure chart for PNC is bullish with a $79 target.

Trigger @ 65.25

- Suggested Positions -

buy the May $65 call (PNC1219E65)

Entry on April xx at $ xx.xx
Earnings Date 04/18/12 (confirmed)
Average Daily Volume = 3.7 million
Listed on March 31, 2012


Ulta Salon, Cosmetics - ULTA - close: 93.92 change: +1.03

Stop Loss: 89.95
Target(s): 97.50
Current Option Gain/Loss: -18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: ULTA bounced near recent short-term support at the $92.00 region this morning. Shares managed to end the day up +1.15. 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

Entry on March 21 at $91.25
Earnings Date 06/07/12 (unconfirmed)
Average Daily Volume = 759 thousand
Listed on March 20, 2012


VMware, Inc. - VMW - close: 114.40 change: +2.03

Stop Loss: 109.75
Target(s): 117.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/02 update: VMW outperformed the major indices with a +1.8% gain on Monday. Unfortunately our trade didn't open this morning. VMW gapped down at the open thanks to an analyst downgrade. Yet traders bought the dip and VMW surged toward potential resistance at $115.00.

I am adjusting our entry point strategy. We will now use a buy-the-dip trigger at $111.50. We still want to keep our position size small to limit our risk. Our exit target is $117.50. More aggressive traders could aim higher but we do not want to hold over the mid-April earnings report.

- Suggested Positions -

buy the Apr $115 call (VMW1221D115)

04/02/12 not open yet. VMW did not hit our entry point requirement. We're adjusting our entry strategy to use a buy-the-dip trigger at $111.50

Entry on March xx at $ xx.xx
Earnings Date 04/17/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on March 31, 2012


PUT Play Updates

Apache Corp. - APA - close: 100.97 change: +0.53

Stop Loss: 102.25
Target(s): 95.25 or 92.00
Current Option Gain/Loss: Apr95.5p: -56.2% & May95p: -40.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: The oversold bounce in APA continued but shares found resistance where we expected. Shares rebounded toward short-term resistance near $102.00 and its simple 200-dma before paring its gains. I would use a new drop under $100.00 as a bearish entry point.

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: 83.83 change: +1.02

Stop Loss: 87.51
Target(s): 78.50
Current Option Gain/Loss: -16.3%
Time Frame: several weeks
New Positions: see below

Comments:
04/02 update: Hmm... IWM bounced off its morning lows and produced a bullish candlestick pattern. More conservative traders may want to tighten their stop loss. 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: 40.47 change: +0.04

Stop Loss: 42.55
Target(s): 33.00
Current Option Gain/Loss: Apr40p -11.3% & May35p: - 8.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: OPEN displayed relative weakness today with a breakdown to new relative lows. Shares actually broke key support at the $40.00 mark and hit our trigger to buy puts at $39.65. I would still consider new positions now at current levels.

Earlier Comments:
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.

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.

(small positions) - Suggested Positions -

Long Apr $40 put (OPEN1221P40) Entry $2.20

- or -

Long May $35 PUT (OPEN1219Q35) Entry $1.70

04/02/12 triggered at $39.65

Entry on April 02 at $39.65
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on March 24, 2012


Polypore Intl. Inc. - PPO - close: 35.67 change: +0.51

Stop Loss: 38.05
Target(s): 31.00
Current Option Gain/Loss: -31.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: Aside from the initial pop higher near the open shares of PPO spent the day trading sideways. 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: 39.94 change: +0.04

Stop Loss: 42.25
Target(s): 35.50
Current Option Gain/Loss: -14.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02 update: SCHN bounced up to short-term resistance at its 10-dma and reversed lower. This looks good if you're bearish but we're running out 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.

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


CLOSED BULLISH PLAYS

Trimble Navigation - TRMB - close: 54.43 change: +0.01

Stop Loss: 53.40
Target(s): 59.75
Current Option Gain/Loss: Apr55c: -53.1% & May60c: -45.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02 update: Hmm... I could not find any news to explain the relative weakness in TRMB this morning. The stock opened down and then spiked lower to $53.26 before bouncing back to close almost unchanged on the day. Our stop loss was hit at $53.40.

- Suggested Positions -

Apr $55 call (TRMB1221D55) Entry $1.28 exit $0.60 (-53.1%)

- or -

May $60 call (TRMB1219E60) Entry $0.55 exit $0.30 (-45.4%)

04/02/12 stopped out at $53.40
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