Editor's Note:

Stocks managed to rebound off their afternoon lows to pare their losses.

Our new IBB trade has been triggered. We want to exit our SCHN trade at the close tomorrow.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 95.27 change: +0.10

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:
04/03 update: AGN managed to eke out a small gain and outperform the major indices thanks to a late day rebound. 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 or even $94.00 level.

There was no change in our option values today (at the closing bell).

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: 64.49 change: -0.03

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: +70.9% & May65c: +58.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: It was a quiet day for CHKP with shares bouncing around the $64.00-64.75 area. 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: 76.31 change: -0.70

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -54.2% & May$80c: -35.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: CTSH underperformed with a -0.9% decline. Shares could be headed for last week's low near $75.40. More conservative traders might want to tighten their stop loss. I am not suggesting new positions at this time.

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: 61.78 change: -0.22

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Apr60c: - 9.6% & May65c: - 7.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: Tuesday was relatively calm for DGX with shares slowly drifting lower. Readers can use a dip near $61.00 or the simple 10-dma as a new bullish entry point.

Earlier Comments:
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: 95.75 change: +0.79

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: +12.1% & May95C: +13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: DLTR spiked higher this morning and briefly traded at a new record high. The stock outperformed the broader market with a +0.8% gain. I am not suggesting new positions at this time but nimble traders could buy a breakout past $96.25 and up their stop loss. We are targeting $98.50. More aggressive traders could target the $100 level. 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: 74.10 change: +1.11

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -47.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03 update: We have been worried with GTLS' recent lack of performance. Shares were holding above support at $72.00. Today the stock shot higher this morning, possibly on last night's news about the company raising prices. The relative strength today is encouraging and GTLS is on the verge of breaking out from this neutral, sideways consolidation over the last couple of weeks.

I would be tempted to buy calls again on a rally past $75.00 or maybe the $75.30 level.

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: 55.73 change: +0.61

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: + 3.7% & May$55c: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: JBHT continues to look bullish. Broken resistance near $55.00 acted as new short-term support when traders bought the dip this morning. JBHT rallied to a new relative high.

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


iShares Biotech ETF - IBB - close: 124.48 change: +1.18

Stop Loss: 121.75
Target(s): 129.75
Current Option Gain/Loss: Apr125c: - 5.4% & May125c: - 6.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: Our new play on the IBB biotech ETF has been triggered. Shares rallied to all-time highs and hit our trigger at $125.25. I would still consider new positions now at current levels. Our multi-week target is $129.75. FYI: The Point & Figure chart for IBB is bullish with a $181 target.

- Suggested Positions -

Long Apr $125 call (IBB1221D125) Entry $1.85

- or -

Long May $125 call (IBB1219E125) Entry $3.20

04/03/12 triggered at $125.25

Entry on April 03 at $125.25
Earnings Date --/--/--
Average Daily Volume = 403 thousand
Listed on April 02, 2012


NetEase.com - NTES - close: 59.05 change: -0.86

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +53.5% & Apr60c: + 85.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03 update: Hmm... NTES tried to rally this morning but shares were hit with profit taking. The stock gave back almost half of yesterday's gains. The $60.00 level continues to be overhead resistance. I don't see any changes from my prior comments.

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: 93.65 change: +0.79

Stop Loss: 89.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +52.0% & May$90c: +31.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: ORLY was showing some relative strength on Tuesday with a +0.8% gain and a new high. I am raising our stop loss up to $89.45. 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

04/03/12 new stop loss @ 89.45
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: 64.70 change: -0.02

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:
04/03 update: PNC traded sideways in a narrow range. The stock bounced off the $64 level this afternoon but has yet to breakout 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: 95.01 change: +1.09

Stop Loss: 89.95
Target(s): 98.50
Current Option Gain/Loss: + 9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03 update: ULTA rallied to another new high and then spent the rest of the day consolidating sideways. I am adjusting our target to $98.50 but more aggressive traders may want to aim for the $99.50-100.00 zone instead. I am not suggesting new positions at this time.

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

- Suggested Positions -

Long Apr $95 call (ULTA1221D95) Entry $1.65

04/03/12 adjusted target to $98.50
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: 114.53 change: +0.13

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:
04/03 update: Traders started buying the dip in VMW near $113 this afternoon. If the market rallies tomorrow we could see VMW breakout past the $115.00 level. Aggressive traders might want to consider a trigger to buy calls at $115.25 and target a move toward $120. For the moment, we are going to keep our trigger to buy calls 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.

Buy-the-dip Trigger @ 111.50

- 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: 99.23 change: -1.74

Stop Loss: 102.25
Target(s): 95.25 or 92.00
Current Option Gain/Loss: Apr95.5p: -35.8% & May95p: -24.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03 update: As we expected shares of APA have continued to retreat after testing overhead resistance. The stock underperformed today with a -1.7% decline.

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: 83.27 change: -0.56

Stop Loss: 87.51
Target(s): 78.50
Current Option Gain/Loss: + 7.5%
Time Frame: several weeks
New Positions: see below

Comments:
04/03 update: The IWM struggled with the $84.00 level this morning and slowly faded to a -0.6% decline. 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: 40.51 change: +0.77

Stop Loss: 42.55
Target(s): 33.00
Current Option Gain/Loss: Apr40p -31.8% & May35p: -17.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03 update: Hmm... it looks like OPEN may have seen a little bit of a short squeeze this morning with the spike higher. The rally stalled at $42.00 and OPEN drifted lower the rest of the day. More conservative traders may want to lower their stop loss closer to the $42.00 level. Wait for a new drop under $39.50 before considering new bearish positions.

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: 35.50 change: -0.17

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:
04/03 update: PPO tried to rally this morning and failed but there was little follow through for the bears. The stock has been trading sideways the last few days. 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: 39.17 change: -0.77

Stop Loss: 40.75
Target(s): 35.50
Current Option Gain/Loss: + 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03 update: SCHN fell to a new relative low. The trend is down. Unfortunately we are almost out of time. We need to exit this position at the closing bell tomorrow (April 4th) to avoid holding over the earnings report. I am adjusting our stop loss down to $40.75.

Exit at the close tomorrow.

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

04/03/12 new stop loss @ 40.75, prepare to exit at the close tomorrow
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