Editor's Note:

Both CAT and TSCO hit our upside targets today. We closed our JBHT ahead of earnings. OPEN was stopped out.

Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 93.19 change: -0.12

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -61.9% & Apr95c: -86.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: Warning! AGN failed to participate in the market's rebound today. That's a warning signal. We will plan to exit this position at the open tomorrow.

- Suggested Positions -

Long Apr $92.50 call (AGN1221D92.5) Entry $3.55

- or -

Long Apr $95 call (AGN1221D95) Entry $1.85

04/12/12 prepare to exit at the open tomorrow.
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


NetEase.com - NTES - close: 56.92 change: -0.63

Stop Loss: 54.45
Target(s): 64.00
Current Option Gain/Loss: Apr55c: -16.0% & Apr60c: - 64.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: It was a disappointing day for NTES. The bounce has reversed near the short-term trend of lower highs. The stock could be building a bull flag consolidation pattern but more conservative traders may want to exit early now anyway. 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: 94.28 change: +0.46

Stop Loss: 89.45
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +72.0% & May$90c: +44.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/12 update: ORLY inched higher on Thursday and seemed to struggle with the $94.40 level almost all day long. There is no change from my prior comments. More conservative traders may want to raise their stops toward Tuesday's low. 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


Ulta Salon, Cosmetics - ULTA - close: 94.73 change: +1.03

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:
04/12 update: Shares of ULTA delivered a +1% gain but shares remain under resistance near the $95.00 level. Today's move does help alleviate the very short-term down trend. Nimble traders could use a rally past $95.50 as a new bullish entry point.

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: 94.90 change: +2.09

Stop Loss: 97.65
Target(s): 92.00
Current Option Gain/Loss: Apr95.5p:+ 39.5% & May95p: +27.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: Ouch! APA took a nice chunk out of our unrealized gains with a +2.2% bounce today. More conservative traders may want to exit early now and lock in a gain. 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: 83.68 change: +2.26

Stop Loss: 84.55
Target(s): 75.50
Current Option Gain/Loss: -76.0%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/12 update: Our BWA put play is in trouble. Shares outperformed today with a +2.7% bounce. There is still overhead resistance near $84.00 but BWA did rally past a few short-term resistance levels. 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


EQT Corp. - EQT - close: 46.60 change: +0.54

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss: Unopened
Time Frame: up to its April 26th earnings report
New Positions: Yes, see below

Comments:
04/12 update: EQT opened higher and rose to a +1.1% gain but momentum was slowing this afternoon. The overall trend is still down. Nimble traders might want to consider bearish positions on a bounce near $48.00. Currently I am suggesting a trigger to buy puts at $45.70. Our target is the $42.00-40.00 zone. We'll use a stop at $48.25, just above today's high. FYI: The Point & Figure chart for EQT is bearish with a $36 target.

We want to exit prior to the April 26th earnings report.

Trigger @ 45.70

- Suggested Positions -

buy the Apr $45 PUT (EQT1221P45)

- or -

buy the May $45 PUT (EQT1219P45)

Entry on April xx at $ xx.xx
Earnings Date 04/26/12 (confirmed)
Average Daily Volume = 1.4 million
Listed on April 11, 2012


Freeport-McMoRan - FCX - close: 35.78 change: -0.53

Stop Loss: 38.25
Target(s): 31.50
Current Option Gain/Loss: Unopened
Time Frame: up to the April 18th earnings report
New Positions: Yes, see below

Comments:
04/12 update: The stock market's widespread bounce on Thursday had a big impact on FCX. Shares appeared to see a little short squeeze this morning and the stock surged to a +5.8% gain. FCX closed just under short-term resistance near $38.00. I don't see any changes from my prior comments.

Earlier Comments:
I do consider this a higher-risk trade because FCX tends to be volatile. Plus, we don't have a lot of time. FCX is due to report earnings on April 18th and we do not want to hold over the report.

I am suggesting small bearish positions if FCX trades at $35.65. Our target is $31.50.

Trigger @ $35.65 (small positions)

- Suggested Positions -

buy the Apr $35 PUT (FCX1221P35)

Entry on April xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 18.7 million
Listed on April 11, 2012


Ryder System, Inc. - R - close: 51.00 change: +0.60

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:
04/12 update: R's bounce today managed to push it up over its 200-dma. Yet the $51.00 level acted as overhead resistance. We're still waiting for a breakdown. 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: 50.20 change: +1.55

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -52.6%
Time Frame: up to its late April earnings report
New Positions: see below

Comments:
04/12 update: Bears were on the defensive today and TKR produced a +3.1% bounce. Shares did stall near the top of the gap down an just above its 10-dma. I would look for a drop back under $49.75 as a new bearish entry point.

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: 74.23 change: -0.72

Stop Loss: 78.25
Target(s): 70.50
Current Option Gain/Loss: + 2.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/12 update: Good news! WTW did not participate in the market's rally today. The early morning spike higher reversed and shares closed near their lows. More conservative traders might want to lower their stops.

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

Caterpillar - CAT - close: 106.44 change: +4.69

Stop Loss: 99.70
Target(s): 104.50
Current Option Gain/Loss: +77.6%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
04/12 update: Target achieved.

Shares of CAT surged higher this morning and the stock ended the day up +4.6%. Our short-term exit target was hit at $104.50.

Earlier Comments:
This is an aggressive trade. The plan was to use small positions to limit our risk.

- Suggested (small) Positions -

Apr $105 call (CAT1221D105) Entry $0.94 exit $1.67 (+77.6%)

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

chart:

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: 55.84 change: +1.34

Stop Loss: 53.75
Target(s): 59.50
Current Option Gain/Loss: Apr55c: + 7.4% & May$55c: +10.0%
Time Frame: exit prior to earnings on April 12th
New Positions: see below

Comments:
04/12 update: JBHT rallied sharply (+2.4%) ahead of its earnings report this evening. The stock climbed toward its recent highs. Our plan was to exit at the closing bell today to avoid holding over earnings.

- Suggested Positions -

Apr $55 call (JBHT1221D55) Entry $1.35 exit $1.40 (+ 7.4%)

- or -

May $55 call (JBHT1219E55) Entry $2.00 exit $2.20 (+10.0%)

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

chart:

Entry on March xx at $ xx.xx
Earnings Date 04/12/12 (confirmed)
Average Daily Volume = 729 thousand
Listed on March 28, 2012


Tractor Supply - TSCO - close: 97.95 change: +5.65

Stop Loss: 89.80
Target(s): 98.00
Current Option Gain/Loss: Aprl95c: +142.8% & May95c: +73.7%
Time Frame: up to the mid April earnings report
New Positions: see below

Comments:
04/12 update: Thanks to the warm weather TSCO raised its earnings guidance this morning. The stock gapped open higher and shot to $98.78 intraday. Our exit target was hit at $98.00.

- Suggested Positions -

Apr $95 call (TSCO1221D95) Entry $1.40 exit $3.40 (+142.8%)

- or -

May $95 call (TSCO1219E95) Entry $3.05 exit $5.30 (+73.7%)

04/12/12 target hit
04/05/12 triggered at $93.25

chart:

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


CLOSED BEARISH PLAYS

OpenTable, Inc. - OPEN - close: 42.11 change: +1.85

Stop Loss: 42.05
Target(s): 33.00
Current Option Gain/Loss: Apr40p -77.2% & May35p: -35.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/12 update: We have been worried about OPEN for a few days now. The slow sink lower was not very convincing. Shares shot higher today with a +4.5% gain. Our stop loss was hit at $42.05.

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.

(small positions) - Suggested Positions -

Apr $40 put (OPEN1221P40) Entry $2.20 exit $0.50 (-77.2%)

- or -

May $35 PUT (OPEN1219Q35) Entry $1.70 exit $1.10 (-35.2%)

04/12/12 stopped out at $42.05
04/10/12 new stop loss @ 42.05
04/02/12 triggered at $39.65

chart:

Entry on April 02 at $39.65
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on March 24, 2012