Editor's Note:

The U.S. markets produced a widespread oversold bounce on Wednesday. Naturally this was good news for our bullish candidates and our new CAT play was opened.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.31 change: +0.83

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -56.3% & Apr95c: -78.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/11 update: AGN recouped about half of yesterday's losses but shares remain under new short-term resistance near $94 and its 10-dma overhead. 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


Caterpillar - CAT - close: 101.75 change: +1.32

Stop Loss: 99.70
Target(s): 104.50
Current Option Gain/Loss: -25.5%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
04/11 update: CAT outperformed the market's major indices with a +1.3% gain. Unfortunately almost all of that was at the gap open higher at $101.77. Our trade is open thanks to a positive open for the S&P 500 as well.

Our short-term target is $104.50.

Earlier Comments:
This is an aggressive trade. The market's short-term trend and CAT's are both down. The plan was to use small positions to limit our risk.

- Suggested (small) Positions -

Long Apr $105 call (CAT1221D105) Entry $0.94

04/11/12 trade opened. CAT opened at $101.77

Entry on April 11 at $101.77
Earnings Date 04/25/12 (confirmed)
Average Daily Volume = 6.3 million
Listed on April 10, 2012


J.B.Hunt Transport - JBHT - close: 54.50 change: +0.20

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: -44.4% & May$55c: -27.5%
Time Frame: exit prior to earnings on April 12th
New Positions: see below

Comments:
04/11 update: The bounce in JBHT today was less than inspiring. The morning rally attempt stalled at the $55.00 level. 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: 57.55 change: +1.97

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: + 5.3% & Apr60c: - 42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/11 update: NTES produced a strong bounce (+3.5%) and recouped nearly all of yesterday's losses. The stock is still trading in a short-term bearish trend of lower highs and lower lows. You could argue this is a bull flag pattern but until it breaks out this is bearish. 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: 93.82 change: +2.35

Stop Loss: 89.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +60.0% & May$90c: +34.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/11 update: ORLY displayed relative strength with a +2.5% gain. More conservative traders may want to raise their stops toward yesterday's lows. 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 (confirmed)
Average Daily Volume = 887 thousand
Listed on March 24, 2012


Tractor Supply - TSCO - close: 92.30 change: +1.46

Stop Loss: 89.80
Target(s): 98.00
Current Option Gain/Loss: Aprl95c: -57.1% & May95c: -19.6%
Time Frame: up to the mid April earnings report
New Positions: see below

Comments:
04/11 update: TSCO outperformed the market with a +1.6% gain today. Yet shares remain inside yesterday's range. TSCO remains at jeopardy for a move lower although the $90.00 level should offer some support. 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: 93.70 change: +1.84

Stop Loss: 89.95
Target(s): 98.50
Current Option Gain/Loss: -42.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/11 update: ULTA delivered a +2% bounce but shares remain inside of yesterday's range and under its simple 10-dma. Thus the very short-term trend is still down. 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: 92.81 change: -0.69

Stop Loss: 97.65
Target(s): 92.00
Current Option Gain/Loss: Apr95.5p:+114.5% & May95p: +70.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/11 update: The energy sector still looks vulnerable in spite of the market's bounce today. APA's pop higher this morning reversed. Our target to exit is $92.00. More conservative traders may want to exit now. I am adjusting our stop loss down to $97.65. 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

04/11/12 new stop loss @ 97.65, readers may want to take profits now with the options at +114.5% and +70.6%
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: 81.42 change: +1.84

Stop Loss: 84.55
Target(s): 75.50
Current Option Gain/Loss: -24.0%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/11 update: BWA saw a sharp spike higher this morning but gains faded. Shares still managed a +2.3% gain. I would consider new bearish positions here at current levels. More conservative traders may want to lower their stop loss.

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: 40.26 change: +0.92

Stop Loss: 42.05
Target(s): 33.00
Current Option Gain/Loss: Apr40p -43.1% & May35p: -20.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/11 update: OPEN outperformed the market with a +2.3% gain. Shares have not yet broken the bearish trend of lower highs. I am seriously tempted to lower our stop loss but we'll leave it at $42.05 for now.

I am not suggesting new positions at this time. 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


Ryder System, Inc. - R - close: 50.40 change: +0.27

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Comments:
04/11 update: The stock market saw an oversold bounce this morning and R gapped ope higher at $50.72. Yet the rebound in R stalled at the $51.00 level. More aggressive traders might consider bearish positions now. I am suggesting a trigger to buy puts at $49.75 with a stop at $52.05. Our target is $45.50. We do not want to hold over the late April earnings report.

Trigger @ 49.75

- Suggested Positions -

buy the Apr $50 PUT (R1221P50)

Entry on April xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 567 thousand
Listed on April 10, 2012


Timken Co. - TKR - close: 48.65 change: +0.66

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -15.7%
Time Frame: up to its late April earnings report
New Positions: see below

Comments:
04/11 update: The oversold bounce in TKR produced +1.3% gain but today's trading remained inside yesterday's range. Thus the short-term trend is still down. 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: 74.95 change: +1.29

Stop Loss: 78.25
Target(s): 70.50
Current Option Gain/Loss: -12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/11 update: WTW produced a +1.75% bounce but shares remain under short-term resistance at $76.00. More conservative traders might want to consider inching down their stop loss. I am not suggesting new positions at this time.

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