Editor's Note:

It was another rough day for stocks. The sell-off seemed to accelerate lower. We did see CHKP, CTSH, DGX, and DLTR get stopped out. I have also removed AMG, PNC, and VMW, none of which had opened.

Our two new puts BWA and TKR were triggered. IWM hit our target. I am suggesting an early exit on our MOS trade.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 92.48 change: -1.46

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -66.1% & Apr95c: -86.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: The pullback in AGN is starting to accelerate with the market's decline. Shares hit an intraday low of $92.39 today. If the market dips again tomorrow then AGN will most likely hit our stop loss at $92.25. More conservative traders may want to exit early. I am not suggesting new positions at this time.

- 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


J.B.Hunt Transport - JBHT - close: 54.30 change: -0.74

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: -48.1% & May$55c: -30.5%
Time Frame: exit prior to earnings on April 12th
New Positions: see below

Comments:
04/10 update: As we expected shares of JBHT have fallen to short-term support near $54.00. The question is will it bounce here or will the correction continue? We have a stop loss at $53.75. I am not suggesting new positions at this time.

Don't forget that we need to exit prior to earnings due out April 12th after the closing bell. That's this Thursday. If the trade is still open we'll exit on Thursday at the closing bell.

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

04/10/12 if the trade is still open, prepare to exit on Thursday at the close

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: 55.58 change: -2.17

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: -41.0% & Apr60c: - 71.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: Yesterday NTES was outperforming but it made up for that with an underperformance today (-3.75%). The bounce has failed at the 10-dma, which is now overhead resistance. If the market drops again tomorrow we will likely see NTES hit our stop loss at $54.45. More conservative traders may want to exit early. 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: 91.47 change: -1.56

Stop Loss: 89.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: -16.0% & May$90c: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: Yesterday ORLY managed to ignore the market's weakness. Today the stock wasn't so lucky. Shares fell -1.6% and closed near short-term technical support at the 20-dma. If this level falls then ORLY will likely test the $90.00 mark. I am not suggesting new positions at current levels.

Earlier Comments:
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


Tractor Supply - TSCO - close: 90.84 change: -2.18

Stop Loss: 89.80
Target(s): 98.00
Current Option Gain/Loss: Aprl95c: -71.4% & May95c: -34.4%
Time Frame: up to the mid April earnings report
New Positions: see below

Comments:
04/10 update: Profit taking in TSCO is pulling the stock back towards round-number support at $90.00. 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: 91.86 change: -2.51

Stop Loss: 89.95
Target(s): 98.50
Current Option Gain/Loss: -63.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: ULTA is also giving into the market-wide weakness. Shares fell -2.6% and closed under their 20-dma. There should be short-term support at $90.00 but that's not guaranteed to hold. 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


PUT Play Updates

Apache Corp. - APA - close: 93.50 change: -1.08

Stop Loss: 98.50
Target(s): 92.00
Current Option Gain/Loss: Apr95.5p: +97.9% & May95p: +63.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: APA continues to sink. Shares hit $93.02 intraday. Our exit target is $92.00. More conservative traders may want to exit now. I am adjusting our stop loss down to $98.50. 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

04/10/12 new stop loss @ 98.50
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


BorgWarner - BWA - close: 81.81 change: -2.54

Stop Loss: 84.55
Target(s): 75.50
Current Option Gain/Loss: +40.0%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/10 update: Our new trade on BWA is off to a good start. Shares hit our trigger to buy puts at $81.25 and kept falling. The close under $80.00 is bearish. I am not suggesting new positions at this time.

Earlier Comments:
We do want to keep our position size small. The most recent data listed short interest at 16% of the 107 million-share float. That does raise the risk of a short squeeze.

- Suggested (small) Positions -

Long Apr $80 PUT (BWA1221P80) Entry $1.25

04/10/12 triggered at $81.25

Entry on April 10 at $81.25
Earnings Date 04/26/12 (confirmed)
Average Daily Volume = 1.1 million
Listed on April 09, 2012


OpenTable, Inc. - OPEN - close: 39.34 change: -0.53

Stop Loss: 42.05
Target(s): 33.00
Current Option Gain/Loss: Apr40p -20.4% & May35p: - 8.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: I am growing concerned with our OPEN trade. If the stock is now going to decline now with the major indices plunging then when is OPEN doing to drop?

Shares did hit new relative lows midday and the stock closed with a -1.3% decline for the session but I am expecting bigger moves from this trade.

I am not suggesting new positions at this time. I am adjusting our stop loss down to $42.05. More conservative traders may want to exit early now to free up capital.

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

04/10/12 new stop loss @ 42.05
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


Timken Co. - TKR - close: 47.99 change: -1.52

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: +23.6%
Time Frame: up to its late April earnings report
New Positions: see below

Comments:
04/10 update: Our new TKR put play is off to a good start. Shares opened at $49.45, hit our trigger at $48.90, and kept on falling. TKR ended the session down -3.0%. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $45.50 although we need to keep a careful eye on possible technical support at the 100-dma, exponential 200-dma, and the 300-dma all near the $46 area. Keep position size small.

- Suggested (small) Positions -

Long Apr $50 PUT (TKR1221P50) Entry $1.90

04/10/12 triggered at $48.90

Entry on April 10 at $48.90
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 846 thousand
Listed on April 09, 2012


Weight Watchers Intl. - WTW - close: 73.66 change: -0.82

Stop Loss: 78.25
Target(s): 70.50
Current Option Gain/Loss: +26.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: WTW tried to hold the $74.00 level but it finally broke down midday. Shares closed the session off -1.1%. I am adjusting our stop loss down to $78.25.

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

04/10/12 new stop loss @ 78.25.
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

Affiliated Managers Group - AMG - close: 106.91 change: -3.71

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:
04/10 update: AMG has been showing relative weakness the last two days. The stock underperformed again today. Shares broke down under its 50-dma on top of its -3.3% decline.

Our trade never opened. I am removing AMG as a candidate. Nimble traders could try and scalp a drop from here toward the $101-100 area.

Trigger @ 115.50

Trade Did Not Open

04/10/12 trade did not open

chart:

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: 61.66 change: -0.11

Stop Loss: 61.40
Target(s): 68.50
Current Option Gain/Loss: Apr62.5c: -62.5% & May65c: -29.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: CHKP ended the day with a -0.1% decline versus a -1.8% plunge in the NASDAQ. Yet CHKP did hit our stop loss at $61.40 intraday. I'd keep an eye on CHKP for a dip toward potential support near $60.00 and its 50-dma.

- Suggested Positions -

Apr $62.50 call (CHKP1221D62.5) Entry $1.55 entry $0.58 (-62.5%)

- or -

May $65 call (CHKP1219E65) Entry $1.20 entry $0.85 (-29.1%)

04/10/12 stopped out at $61.40
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 04/23/12 (confirmed)
Average Daily Volume = 1.3 million
Listed on March 22, 2012


Cognizant Technology - CTSH - close: 74.82 change: -1.09

Stop Loss: 74.75
Target(s): 82.00
Current Option Gain/Loss: Apr77.5c: -78.2% & May$80c: -47.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: CTSH broke down under support near $75.00 and briefly traded under its 30-dma. Our stop loss was hit at $74.75.

- Suggested Positions -

Apr $77.50 call (CTSH1221D77.5) Entry $1.75 exit $0.38 (-78.2%)

- or -

May $80 call (CTSH1219E80) Entry $1.95 exit $1.03 (-47.1%)

04/10/12 stopped out at $74.75
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: 58.80 change: -0.83

Stop Loss: 59.45
Target(s): 66.50
Current Option Gain/Loss: Apr60c: -65.3% & May65c: -78.5%
Time Frame: exit prior to earnings on April 18th
New Positions: see below

Comments:
04/10 update: Just as we expected, DGX spiked lower at the open and quickly hit our stop loss at $59.45. Today's move confirms the breakdown under $60.00.

- Suggested Positions -

Apr $60 call (DGX1221D60) Entry $2.60 exit $0.90 (-65.3%)

- or -

May $65 call (DGX1219E65) Entry $0.70 exit $0.15 (-78.5%)

04/10/12 stopped out at $59.45
04/07/12 plan to exit prior to the April 18th earnings report
04/02/12 triggered at $61.55

chart:

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: 93.39 change: -1.93

Stop Loss: 93.40
Target(s): 98.50
Current Option Gain/Loss: Apr$95c: -63.6% & May95C: -26.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: DLTR succumbed to the market-wide selling and shares fell to a new relative low. Our stop loss was hit at $93.40. I'd keep an eye on DLTR as a dip near $90 or the 50-dma might be a new bullish entry point.

- Suggested Positions -

Apr $95 call (DLTR1221D95) Entry $1.65 exit $0.60 (-63.6%)

- or -

May $95 call (DLTR1219E95) Entry $3.00 exit $2.20 (-26.6%)

04/10/12 stopped out at $93.40
04/09/12 new stop loss @ 93.40
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


PNC Financial Services - PNC - close: 61.75 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:
04/10 update: The $62.00 level didn't hold and PNC closed near its lows for the session. The stock looks like it's headed for $60.00. Our trade has not opened yet and I am removing PNC as a candidate.

Trigger @ 65.25

Trade did not open.

04/10/12 trade did not open

chart:

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


VMware, Inc. - VMW - close: 110.37 change: -2.14

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:
04/10 update: VMW tried to rally this morning on some positive analyst comments but traders sold into strength and shares closed down -1.9%. The stock is poised to breakdown under the $110 level soon. I am removing VMW from the play list. Our trade has not opened yet. I will place VMW on my watch list for a potential entry point if shares dip into the $108-105 area.

Buy-the-dip Trigger @ 109.25

Our trade has not opened yet.

04/10/12 choosing to remove VMW as a candidate
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

chart:

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


CLOSED BEARISH PLAYS

iShares Russell 2000 ETF - IWM - close: 78.35 change: -1.89

Stop Loss: 84.55
Target(s): 78.50
Current Option Gain/Loss: +65.0%
Time Frame: several weeks
New Positions: see below

Comments:
04/10 update: The small caps continued to plunge and the IWM hit our exit target at $78.50. Now this ETF is nearing potential support at its 100-dma and its 300-dma.

- Suggested Positions -

Jun $82 PUT (IWM1216R82) Entry $3.12 exit $5.15 (+65.0%)

04/10/12 exit target hit at $78.50
04/09/12 new stop loss @ 84.55
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


The Mosaic Co. - MOS - close: 50.12 change: -1.51

Stop Loss: 54.25
Target(s): 47.50
Current Option Gain/Loss: +200.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/10 update: The sell-off in MOS is accelerating lower with a -2.9% drop. Shares are down five days in a row and the stock is testing round-number support at $50.00. If there was going to be an oversold bounce then this is the spot to expect one.

I am adjusting our exit strategy. We want to exit immediately. Our put has doubled in value (+200%).

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

- Suggested (small) Positions -

April $50 PUT (MOS1221P50) Entry $0.39 exit $1.17 (+200%)

04/10/12 adjust exit. We want to exit now!
04/09/12 MOS gapped open lower at $52.20.

chart:

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