Editor's Note:

Stocks saw a widespread sell-off on Monday but it could have been worse. We did see our IBB and REGN trades get stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.94 change: -1.05

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -40.8% & Apr95c: -62.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: AGN gapped down at the open but found support at its late March lows. Shares ended the session down -1.1%, which is in line with the S&P 500. We have a stop loss at $92.25. I am not suggesting new positions at this time.

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: 110.62 change: -2.56

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:
04/09 update: AMG underperformed on Monday with a -2.2% decline. The stock is testing support in the 109.50-110.00 zone. Aggressive traders could buy a bounce from here with a stop under $109.50ish. Currently our plan is to buy calls at $115.50. If we see AMG close under $110 we'll drop it as a bullish candidate.

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: 61.77 change: -1.31

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: -58.0% & May65c: -25.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: CHKP gave up -2.0%. Most of that loss was on the opening gap down and shares churned sideways under $62 the rest of the day. The low was $61.55. If the market continues to drop tomorrow CHKP will likely hit our stop loss at $61.40. More conservative traders may want to exit early now. 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 04/23/12 (confirmed)
Average Daily Volume = 1.3 million
Listed on March 22, 2012


Cognizant Technology - CTSH - close: 75.91 change: -1.38

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -65.7% & May$80c: -41.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: CTSH fell toward short-term support near $75.00 and bounced. The stock did close down -1.7% and if the market drops again tomorrow we could definitely see CTSH hit our stop loss at $74.75. 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: 59.63 change: -1.54

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Apr60c: -59.6% & May65c: -64.2%
Time Frame: exit prior to earnings on April 18th
New Positions: see below

Comments:
04/09 update: DGX underperformed on Monday with a gap down and a -2.5% drop. Shares were moving lower in the last few minutes of trading and the stock looks poised to hit our stop loss at $59.45 tomorrow morning. I am not suggesting new positions at this time.

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

04/07/12 plan to exit prior to the April 18th earnings report
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: 95.32 change: -0.83

Stop Loss: 93.40
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -15.1% & May95C: + 3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: DLTR spiked down toward short-term support near $94.00 and bounced. We will go ahead and raise our stop loss up to $93.40. I am not suggesting new positions at this time.

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

04/09/12 new stop loss @ 93.40
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: 55.04 change: -0.88

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: -22.2% & May$55c: -17.5%
Time Frame: exit prior to earnings on April 12th
New Positions: see below

Comments:
04/09 update: JBHT fell in line with the drop in the transports. The stock flirted with support near $55.00 all day long. If the market drops again JBHT will probably dip to the next level of support near $54.00. I am not suggesting new positions at this time.

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 (confirmed)
Average Daily Volume = 729 thousand
Listed on March 28, 2012


NetEase.com - NTES - close: 57.75 change: -0.11

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: +10.7% & Apr60c: - 21.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: NTES held up well on Monday. Shares actually traded in positive territory intraday. The 10-dma overhead is short-term resistance. $55.00 is short-term support. 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: 93.03 change: +0.38

Stop Loss: 89.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +32.0% & May$90c: +21.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: ORLY bucked the trend on Monday. Shares did spike down at the open but traders bought the dip and ORLY ended higher (+0.4%). I am not suggesting new positions at current levels.

We have moved our target 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

04/07/12 moved exit target to $98.50
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: 62.64 change: -0.89

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:
04/09 update: PNC is inching closer to support near $62.00. Currently our plan is to buy calls on a breakout with a trigger at $65.25. Yet if we see PNC bounce from $62.00 we might adjust our strategy to buy the bounce and adjust our stop loss. 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: 93.02 change: -0.33

Stop Loss: 89.80
Target(s): 98.00
Current Option Gain/Loss: Aprl95c: -35.7% & May95c: - 9.8%
Time Frame: up to the mid April earnings report
New Positions: see below

Comments:
04/09 update: Traders bought the dip in TSCO this morning and the stock almost made it back into positive territory. I am not suggesting new positions at this time but nimble traders could be ready to buy a bounce off the $90.00 mark if we see one.

- Suggested Positions -

Long Apr $95 call (TSCO1221D95) Entry $1.40

- or -

Long May $95 call (TSCO1219E95) Entry $3.05

04/05/12 triggered at $93.25

Entry on April 05 at $93.25
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 578 thousand
Listed on April 03, 2012


Ulta Salon, Cosmetics - ULTA - close: 94.37 change: -0.67

Stop Loss: 89.95
Target(s): 98.50
Current Option Gain/Loss: -27.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: ULTA gapped down at the open but shares managed a decent bounce and pared its losses to just -0.7%. 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: 112.51 change: -1.24

Stop Loss: 107.25
Target(s): 117.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the April 18th earnings report
New Positions: Yes, see below

Comments:
04/09 update: The sell-off in VMW was not as deep as expected. Shares fell to $111.04 this morning and then trimmed its loss to -1.0%. At the moment I'm willing to wait and keep our buy-the-dip trigger at $109.25. Just remember that we want to exit prior to the April 18th earnings.

We want to keep our position size small to limit our risk.

Buy-the-dip Trigger @ 109.25

- Suggested Positions -

buy the Apr $115 call (VMW1221D115)

04/07/12 not open yet. Adjust buy-the-dip trigger down to $109.25 with a stop loss at $107.25.
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: 94.58 change: -1.29

Stop Loss: 99.00
Target(s): 92.00
Current Option Gain/Loss: Apr95.5p: +60.4% & May95p: +39.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: APA sank to new multi-week lows today. More conservative traders may want to start taking profits now. I am adjusting our stop loss down to $99.00. I am not suggesting new positions at this time.

- Suggested Positions -

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

- or -

Long May $95 PUT (APA1219Q95) Entry $2.90

04/09/12 new stop loss @ 99.00
04/07/12 reduced exit targets to just one at $92.00
04/07/12 new stop loss @ 100.25

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: 80.24 change: -1.34

Stop Loss: 84.55
Target(s): 78.50
Current Option Gain/Loss: +39.4%
Time Frame: several weeks
New Positions: see below

Comments:
04/09 update: As expected the IWM found support near $80.00. This small cap ETF gapped down and closed with a -1.6% loss. I am lowering our stop loss down to $84.55. Our target to take profits is at $78.50. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $82 PUT (IWM1216R82) Entry $3.12

04/09/12 new stop loss @ 84.55
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


The Mosaic Co. - MOS - close: 51.63 change: -1.33

Stop Loss: 55.25
Target(s): 47.50
Current Option Gain/Loss: +25.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: MOS gapped open lower at $52.20 and fell to a -2.5% decline. The next level of support should be $50.00 but we're aiming for $47.50. The Point & Figure chart for MOS is bearish with a $46 target.

The plan was to keep our position size small to limit risk.

- Suggested (small) Positions -

Long April $50 PUT (MOS1221P50) Entry $0.39

04/09/12 MOS gapped open lower at $52.20.

Entry on April 09 at $52.20
Earnings Date 03/28/12 missed by 10 cents
Average Daily Volume = 5.2 million
Listed on April 07, 2012


OpenTable, Inc. - OPEN - close: 39.87 change: -0.69

Stop Loss: 42.55
Target(s): 33.00
Current Option Gain/Loss: Apr40p -29.5% & May35p: -14.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: Hmm... the jobs report would have been a great excuse to sell OPEN. The rest of the market was breaking down. Yet OPEN did not. The stock did fall -1.7% but it failed to break down to new relative lows. That makes me cautious here. Last Wednesday's low was $39.06. Readers may want to launch new positions if OPEN hits $39.00.

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


Weight Watchers Intl. - WTW - close: 74.48 change: -1.68

Stop Loss: 79.25
Target(s): 70.50
Current Option Gain/Loss: + 9.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09 update: WTW underperformed the market with a -2.2% decline. Yet most of the decline came with the gap down at $73.99. The intraday bounce was sold and shares spent the rest of the day hovering near $74.00. Prior support near $76.00 should be new resistance. Nimble traders could look for a bounce near $76.00 as a new entry point for puts.

Earlier Comments:
The plan was to keep our position size small to limit our risk. I want to warn you that WTW could be prone to short squeezes with short interest at 18.5% of the small 35 million-share float.

- Suggested (small) Positions -

Long Apr $75 PUT (WTW1221P75) Entry $2.05

04/09/12 WTW gapped open lower at $73.99

Entry on April 09 at $73.99
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on April 07, 2012


CLOSED BULLISH PLAYS

iShares Biotech ETF - IBB - close: 121.49 change: -2.27

Stop Loss: 121.75
Target(s): 129.75
Current Option Gain/Loss: Apr125c: -83.7% & May125c: -60.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09 update: As expected the IBB spiked down and hit our stop loss at $121.75. Nimble traders may want to keep an eye on IBB since a bounce near $120.00 could be used as a new entry point.

- Suggested Positions -

Apr $125 call (IBB1221D125) Entry $1.85 exit $0.30 (-83.7%)

- or -

May $125 call (IBB1219E125) Entry $3.20 exit $1.25 (-60.9%)

04/09/12 stopped out at $121.75
04/07/12 odds are this trade will get stopped out on Monday
04/03/12 triggered at $125.25

chart:

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


Regeneron Pharma. - REGN - close: 121.13 change: -2.31

Stop Loss: 119.75
Target(s): 129.75
Current Option Gain/Loss: -45.9%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/09 update: It was rather unfortunate timing to see REGN get triggered on Thursday and then immediately get stopped out on Monday morning with the market's spike lower. Shares dipped to $119.65 intraday. That was enough to hit our stop at $119.75.

I would keep an eye on REGN. If it can hold this level we might re-visit it soon.

Apr $125 call (REGN1221D125) entry $3.05 exit $1.65 (-45.9%)

04/09/12 stopped out at $119.75,
04/05/12 triggered at $122.50

chart:

Entry on April 05 at $122.50
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 774 thousand
Listed on April 04, 2012