Editor's Note:

Our put play on SCHN was a winner and we've closed it prior to the earnings report tomorrow. Elsewhere we were stopped out of GTLS and PPO.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 94.82 change: -0.45

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -21.1% & Apr95c: -37.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: AGN held up pretty well with a minor -0.4% decline on Wednesday. Shares should have short-term support near $94.00. 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


Affiliated Managers Group - AMG - close: 115.19 change: +1.66

Stop Loss: 111.45
Target(s): 119.50
Current Option Gain/Loss: Unopened
Time Frame: up to the late April earnings report.
New Positions: Yes, see below

Comments:
04/04 update: AMG opened lower and then dipped to spend most of the day in the $113.00-113.75 zone. We are waiting for a new relative high.

I am suggesting a trigger to buy calls at $115.50 with a stop loss at $111.45. Our target is $119.50. FYI: The Point & Figure chart for AMG is bullish with a $134 target.

Trigger @ 115.50

- Suggested Positions -

buy the Apr $115 call (AMG1221D115)

- or -

buy the May $120 call (AMG1219E120)

Entry on April xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 310 thousand
Listed on April 03, 2012


Check Point Software - CHKP - close: 63.07 change: -1.42

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: + 9.6% & May65c: + 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: Ouch! Technology stocks were underperformers today. CHKP fell -2.2% and closed under short-term support at its 10-dma. The stock looks poised for a dip toward $62.00. I am not suggesting new positions at this time.

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: 76.28 change: -0.03

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:
04/04 update: CTSH held up well today. Traders bought the dip this morning and the stock bounced back to almost close unchanged on the session. Yesterday I suggested that CTSH might test the $75.40 level and the stock hit $75.36 this morning. 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: 61.08 change: -0.70

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Apr60c: -26.9% & May65c: -28.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: DGX fell toward short-term support near $61.00 and traded near this level most of the session. If both DGX and the S&P 500 index open positive tomorrow I would use it as a new bullish entry point. If the $61 level falls then DGX will likely test the $60.00 level.

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: 94.56 change: -1.19

Stop Loss: 92.25
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -30.3% & May95C: - 6.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: One of the analyst on CNBC today was talking about how traders were lightening up on their winners. That seemed to be the case with DLTR. The stock hit a new high yesterday and shares gave up -1.2% in profit taking today. DLTR did hold near short-term support at $94.00.

We have a stop loss at $92.25. More conservative traders may want to raise their stop toward the $93.50 area instead.

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


J.B.Hunt Transport - JBHT - close: 55.72 change: -0.01

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: +11.1% & May$55c: +12.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: JBHT was slowly drifting higher off its morning dip. The stock would have closed in positive territory were it not for a pullback in the last few minutes. The trend is still higher but given the market's weakness today readers may want to wait for a dip near $55.00 before considering new positions.

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: 123.41 change: -1.85

Stop Loss: 121.75
Target(s): 129.75
Current Option Gain/Loss: Apr125c: -48.6% & May125c: -31.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: Biotech stocks were not immune to the market's widespread sell-off today. The IBB reversed yesterday's gains with a -1.4% decline today. Readers may want to look for a dip or a bounce near short-term support at $122.00 as a new entry point.

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: 56.88 change: -2.17

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: - 5.3% & Apr60c: - 28.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: After yesterday's failed rally near $60.00 shares of NTES were primed for some profit taking today. The stock plunged -3.6%. At this point we could see NTES drop toward likely support near $55.00. 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: 92.86 change: -0.79

Stop Loss: 89.45
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:
04/04 update: Traders bought the dip near $92.00 this morning. The intraday bounce today looks like a new bullish entry point. However, readers may want to wait and only consider new positions if both ORLY and the S&P 500 index open positive tomorrow.

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:
04/04 update: PNC continues to trade sideways. I don't see any changes from my prior comments. 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


Tractor Supply - TSCO - close: 92.89 change: +1.03

Stop Loss: 89.80
Target(s): 98.00
Current Option Gain/Loss: Unopened
Time Frame: up to the mid April earnings report
New Positions: Yes, see below

Comments:
04/04 update: TSCO held up pretty well today. Traders were buying the dip near $92.00 this morning. I would be tempted to buy calls here but we will stick to our plan. I am suggesting a trigger to buy calls at $93.25. We'll use a stop at $89.80, under Monday's low. Our target is $98.00. We do not want to hold over the mid April earnings report so we may only have two or three weeks. FYI: The Point & Figure chart for TSCO is bullish with a $109 target.

Trigger @ 93.25

- Suggested Positions -

buy the Apr $95 call (TSCO1221D95)

- or -

buy the May $95 call (TSCO1219E95)

Entry on April xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 578 thousand
Listed on April 03, 2012


Ulta Salon, Cosmetics - ULTA - close: 94.93 change: -0.08

Stop Loss: 89.95
Target(s): 98.50
Current Option Gain/Loss: -12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: ULTA was showing relative strength this afternoon. Traders bought the dip midday and ULTA managed to reverse higher and almost closed in positive territory. 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: 112.97 change: -1.56

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:
04/04 update: I have to confess that I am surprised VMW did not hit our buy-the-dip trigger at $111.50 today. The stock fell to $111.84 midday before trimming its losses. There is still a decent chance that VMW will pull back into the $111.50-110.00 zone. The simple 10-dma is at $111.17.

I don't see any changes from my prior comments. 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: 97.54 change: -1.69

Stop Loss: 102.25
Target(s): 95.25 or 92.00
Current Option Gain/Loss: Apr95.5p: - 7.5% & May95p: - 4.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: This morning APA announced it had priced a $3 billion debt auction to pay for the cash portion of its acquisition of Cordillera Energy. I doubt this had much impact on the share price. APA was already trending lower. APA hit a new relative low at $96.50 this morning and closed with a -1.7% decline.

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

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: 81.94 change: -1.33

Stop Loss: 87.51
Target(s): 78.50
Current Option Gain/Loss: +13.1%
Time Frame: several weeks
New Positions: see below

Comments:
04/04 update: The small cap ETF underperformed the NASDAQ with a -1.59% decline. The IWM briefly traded under technical support at its rising 50-dma. 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: 40.62 change: +0.12

Stop Loss: 42.55
Target(s): 33.00
Current Option Gain/Loss: Apr40p -34.0% & May35p: -17.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/04 update: Warning! The market produced a very widespread decline today and yet OPEN did not participate. This is a warning signal if you're bearish. Readers may want to tighten their stop loss. I am not suggesting new positions at this time.

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


CLOSED BULLISH PLAYS

Chart Industries - GTLS - close: 71.78 change: -2.32

Stop Loss: 70.90
Target(s): 79.75
Current Option Gain/Loss: -74.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: Ouch! It was an ugly day for GTLS. After yesterday's big bounce the stock reversed hard and broke down from its pennant-shaped consolidation pattern. Our stop loss was hit at $70.90.

- Suggested Positions -

Apr $75 call (GTLS1221D75) Entry $3.50 exit $0.90 (-74.2%)

04/04/12 stopped out at $70.90
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


CLOSED BEARISH PLAYS

Polypore Intl. Inc. - PPO - close: 35.50 change: -0.17

Stop Loss: 38.05
Target(s): 31.00
Current Option Gain/Loss: -71.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: PPO makes parts for GM's electric car the Chevy Volt. This morning GM announced it would resume making the Volt one week earlier than expected. This unexpected turn of events sparked some short covering in PPO. The stock shot higher this morning with a spike to $38.55. Our stop loss was hit at $38.05.

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).

- Suggested (Small) Positions -

Apr $35 PUT (PPO1221P35) Entry $1.75 exit $0.55 (-71.4%)

04/04/12 stopped out at $38.05
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: 38.06 change: -1.11

Stop Loss: 40.75
Target(s): 35.50
Current Option Gain/Loss: +48.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/04 update: It was our plan to exit our SCHN trade today at the close to avoid holding over earnings tomorrow morning. SCHN was kind enough to drop -2.8% for us today.

(small positions) - Suggested Positions -

Apr $40 PUT (SCHN1221P40) Entry $1.58 exit $2.35 (+48.7%)

04/04/12 planned exit at the close
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

chart:

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