Editor's Note:

The midweek market bounce has reversed and stocks sold off into the weekend. On Friday we closed our AGN trade. Ryder was triggered. I have removed FCX.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 48.42 change: +0.84

Stop Loss: 46.95
Target(s): 52.25
Current Option Gain/Loss: Unopened
Time Frame: up to the early May earnings report.
New Positions: Yes, see below

Comments:
04/14 update: Our new CI trade is not open yet. The stock traded to an intraday high of $48.60 on Friday. I am suggesting a trigger at $48.75 as our entry. We'll start with a stop at $46.95. The $50.00 level is short-term resistance but we're aiming for $52.50. Aggressive traders could use the April calls, which expire in six trading days. I am suggesting the May calls. FYI: The Point & Figure chart for CI is bullish with a $60 target.

Trigger @ $48.75

- Suggested Positions -

buy the May $50 call (CI1219E50)

chart:

Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (confirmed)
Average Daily Volume = 3.0 million
Listed on April 12, 2012


NetEase.com - NTES - close: 56.98 change: +0.06

Stop Loss: 54.90
Target(s): 64.00
Current Option Gain/Loss: Apr55c: -17.5% & Apr60c: - 78.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/14 update: We only have five days left for our April calls. More conservative traders may want to exit early now. I am not suggesting new positions at this time. We will raise our stop loss up to $54.90. Plan on exiting on the next rally into the $59-60 zone.

- Suggested (Small) Positions -

Long Apr $55 call (NTES1221D55) Entry $2.80

- or -

Long Apr $60 call (NTES1221D60) Entry $0.70

04/14/12 new stop loss @ 54.90
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%)

chart:

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: 94.35 change: +0.07

Stop Loss: 89.90
Target(s): 98.50
Current Option Gain/Loss: Apr90c: +76.0% & May$90c: +46.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/14 update: ORLY continues to show relative strength. The stock set a new all-time high on Friday. Unfortunately I wouldn't count on ORLY's strength to last. If the market accelerates lower it will be very tough for ORLY to keep posting gains.

We only have five trading days left for the April options. I am suggesting we go ahead and exit our April $90 calls at the open on Monday. We will inch our stop loss up to $89.90. More conservative traders may want to raise their stop closer to the 30-dma instead. I am not suggesting new positions at current levels.

- Suggested Positions -

Long Apr $90 call (ORLY1221D90) Entry $2.50

- or -

Long May $90 call (ORLY1219E95) Entry $3.95

04/14/12 plan to exit our April calls at the open on Monday
04/14/12 new stop loss @ 89.90
04/07/12 moved exit target to $98.50
04/03/12 new stop loss @ 89.45
03/26/12 triggered at $91.25

chart:

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: 94.93 change: +0.20

Stop Loss: 91.49
Target(s): 98.50
Current Option Gain/Loss: -27.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/14 update: ULTA is also showing some relative strength. The stock is hovering near the bottom of its bullish channel (see chart) and looks poised to breakout over resistance at $95.00. Of course there is no guarantee that ULTA will breakout higher, especially with the market poised to drop. Last week's low was $91.61. I am raising our stop loss to $91.49. Meanwhile nimble traders could use a rally past $95.50 as a new bullish entry point. Keep in mind that we will plan an exit in the next couple of days.

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

chart:

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: 93.65 change: -1.25

Stop Loss: 97.05
Target(s): 92.00
Current Option Gain/Loss: Apr95.5p:+ 79.1% & May95p: +51.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/14 update: Good news! There was no follow through on APA's oversold bounce from Thursday. Shares lost -1.3% on Friday. The simple 10-dma has fallen to $96.35. I am lowering our stop loss down to $97.05. More conservative traders may want to exit early now and lock in a gain. I am not suggesting new positions at this time.

Our exit target is $92.00. More aggressive traders could aim for the $90 area. Keep in mind we need to exit our April options soon.

- Suggested Positions -

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

- or -

Long May $95 PUT (APA1219Q95) Entry $2.90

04/14/12 new stop loss @ 97.05, prepare to exit April options soon
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

chart:

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: 81.80 change: -1.88

Stop Loss: 84.55
Target(s): 75.50
Current Option Gain/Loss: -48.0%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/14 update: Good news! There was no follow through on BWA's oversold bounce on Thursday. Shares hit a high of $83.93 and reversed under short-term technical resistance. The stock closed near its low for the day. Readers can use this reversal as a new bearish entry point to buy puts. You may want to buy May puts. We have to exit our April puts this week before they expire.

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

04/14/12 Friday's reversal looks like a new entry point
04/10/12 triggered at $81.25

chart:

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: 46.18 change: -0.42

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:
04/14 update: EQT is still hovering near support at the $46.00 level. We are waiting for a breakdown. 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)

chart:

Entry on April xx at $ xx.xx
Earnings Date 04/26/12 (confirmed)
Average Daily Volume = 1.4 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: -15.0%
Time Frame: exit before April option expiration
New Positions: see below

Comments:
04/14 update: Our Ryder trade has been triggered with Friday's breakdown to new lows. Shares hit our trigger at $49.75 late in the day. I would still consider new positions now at current levels but you will probably want to buy May puts instead. More conservative traders may want to use a tighter stop loss. Our target is $45.50. We do not want to hold over the late April earnings report.

Don't forget that April options expire in five trading days so we don't have much time.

- Suggested Positions -

Long Apr $50 PUT (R1221P50) Entry $1.00

04/13/12 triggered at $49.75

chart:

Entry on April 13 at $49.75
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 567 thousand
Listed on April 10, 2012


Timken Co. - TKR - close: 49.60 change: -0.60

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -39.4%
Time Frame: up to its late April earnings report
New Positions: see below

Comments:
04/14 update: There was no follow through on TKR's big Thursday bounce. Shares have closed back under the $50.00 level, which is bearish. Friday's move looks like a new bearish entry point to buy puts but you may want to buy May puts since April puts expire in five trading days.

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

chart:

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: 74.08 change: -0.15

Stop Loss: 77.25
Target(s): 70.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/14 update: WTW is not seeing a lot of movement either way. Thursday's intraday reversal failed at its 10-dma but there wasn't much follow through lower on Friday. I am adjusting our stop loss down to $77.25. I'm not suggesting new positions. We only have five days left on April options.

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

04/14/12 new stop loss @ 77.25
04/10/12 new stop loss @ 78.25.
04/09/12 WTW gapped open lower at $73.99

chart:

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

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

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: Apr92.5c: -43.6% & Apr95c: -83.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/14 update: Positive comments from Jim Cramer on Thursday night helped AGN outperform the market on Friday with a +1.5% gain. The stock broke above short-term technical resistance but failed to close over the $95.00 level.

AGN had not been acting very healthy and our plan was to exit at the open on Friday morning.

- Suggested Positions -

Apr $92.50 call (AGN1221D92.5) Entry $3.55 exit $2.00 (-43.6%)

- or -

Apr $95 call (AGN1221D95) Entry $1.85 exit $0.30 (-83.7%)

04/13/12 planned exit on Friday morning
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.

chart:

Entry on March 27 at $95.25
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on March 13, 2012


CLOSED BEARISH PLAYS

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: see below

Comments:
04/14 update: There was no follow through on Thursday's short squeeze in FCX. The stock underperformed the broader market with a -2.5% drop on Friday. Aggressive traders could use a drop under $36.70 as a new entry point for puts. However, we do not want to hold over the April 18th earnings report. Since our trade isn't open yet I am dropping FCX as a candidate.

(note: the April 18th earnings date is not yet confirmed.)

Trigger @ $35.65 (small positions)

Our trade did not open.

04/14/12 trade did not open. removed ahead of earnings.

chart:

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