Editor's Note:

Our bearish play on Apache (APA) has hit our exit target. Elsewhere our EQT trade has been triggered.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 47.68 change: -0.63

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:
04/16 update: CI is struggling to get past short-term overhead resistance at its 10-dma. The stock underperformed today with a -1.3% decline. If we see CI close under $47.00 I'll probably drop it as a bullish candidate.

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. FYI: The Point & Figure chart for CI is bullish with a $60 target.

Trigger @ $48.75

- Suggested Positions -

buy the May $50 call (CI1219E50)

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: 55.95 change: -1.03

Stop Loss: 54.90
Target(s): 64.00
Current Option Gain/Loss: Apr55c: -48.2% & Apr60c: - 92.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16 update: It's not looking good for the remainder of our April calls. We only have four trading days left. I am not suggesting new positions at this time.

- 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%)

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: 94.76 change: +0.41

Stop Loss: 89.90
Target(s): 98.50
Current Option Gain/Loss: (Apr90c: +76.0%) & May$90c: +51.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/16 update: ORLY continues to inch higher. Traders bought the dip near $94.00 this morning. Our plan was to exit our April $90 calls at the open this morning.

I am not suggesting new positions at current levels.

- Suggested Positions -

Apr $90 call (ORLY1221D90) Entry $2.50 exit $4.40 (+76.0%)

- or -

Long May $90 call (ORLY1219E95) Entry $3.95

04/16/12 planned exit for Apr $90 call at the open.
option bid was $4.40 (+76.0%)
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

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: 93.15 change: -1.78

Stop Loss: 91.49
Target(s): 98.50
Current Option Gain/Loss: -72.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16 update: Uh-oh! The action in ULTA today is bearish. The stock opened higher but reversed near resistance in the $96 area and shares underperformed with a -1.8% decline. Technically today has created a bearish engulfing candlestick. We only have four days left on our April call so readers may want to exit early.

- 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

BorgWarner - BWA - close: 82.60 change: +0.80

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:
04/16 update: BWA rallied off its morning lows and ended the session with a +0.9% gain. Shares remain under short-term resistance near $84.00 and a few short-term moving averages. Readers may want to wait for a new drop under $81.00 before initiating new positions (and buy May puts, not Aprils).

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

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


Dow Jones Industrial ETF - DIA - close: 128.40 change: -1.32

Stop Loss: 130.65
Target(s): 125.00 and 122.00
Current Option Gain/Loss: May127p: + 8.4% & May124p: + 9.4%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/16 update: The DIA opened a bit higher at $129.23, which knocked the price of our put options lower. The midday rally attempt stalled at technical resistance at its 50-dma. I would still consider new positions now at current levels.

Please note that I am suggesting a short-term target at $125.00 and a longer-term, multi-week target at $122.00.

- Suggested Positions -

Long May $127 PUT (DIA1219Q127) Entry $1.77

- or -

Long May $124 PUT (DIA1219A124) Entry $1.06

Entry on April 16 at $129.23
Earnings Date --/--/--
Average Daily Volume = 6.3 million
Listed on April 14, 2012


EQT Corp. - EQT - close: 46.18 change: -0.42

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss: Apr$45P: - 3.8% & May45P: + 9.3%
Time Frame: up to its April 26th earnings report
New Positions: see below

Comments:
04/16 update: EQT gapped open higher this morning but traders quickly sold into strength. The stock broke down to new relative lows and hit our trigger to buy puts at $45.70. Our target is the $42.00-40.00 zone. FYI: The Point & Figure chart for EQT is bearish with a $36 target.

Note: we need to exit our April puts before they expire this weekend.

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

- Suggested Positions -

Long Apr $45 PUT (EQT1221P45) Entry $0.52

- or -

Long May $45 PUT (EQT1219P45) Entry $1.60

04/16/12 triggered at $45.70

Entry on April 16 at $45.70
Earnings Date 04/26/12 (confirmed)
Average Daily Volume = 1.4 million
Listed on April 11, 2012


FedEx Corp. - FDX - close: 88.03 change: -1.81

Stop Loss: 90.55
Target(s): 85.05
Current Option Gain/Loss: - 2.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/16 update: Monday was a relatively quiet day for FDX with the stock churning sideways. I don't see any changes from my weekend comments. There is potential support at $85.00 and its 200-dma near $84.60. I am suggesting we buy puts at the open on Monday and aim for $85.00. More aggressive traders could aim lower. FYI: The Point & Figure chart for FDX is bearish with a $78 target.

- Suggested Positions -

Long May $85 PUT (FDX1219Q85) Entry $1.51

Entry on April 16 at $88.57
Earnings Date 06/19/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on April 14, 2012


Ryder System, Inc. - R - close: 49.94 change: +0.20

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Apr50p: -40.0%
Time Frame: exit before April option expiration
New Positions: see below

Comments:
04/16 update: Shares of R saw a minor bounce on Monday but shares still look poised to move lower. I would still consider new positions now at current levels but you will probably want to buy May puts instead. I'm listing the May $50 puts (entry tomorrow morning). 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 four trading days.

- Suggested Positions -

Long Apr $50 PUT (R1221P50) Entry $1.00

- or -

Buy the May $50 PUT (R1218Q50) current ask $2.20

04/13/12 triggered at $49.75

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: 49.85 change: +0.25

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -55.2%
Time Frame: exit before the April 25th earnings report
New Positions: see below

Comments:
04/16 update: TKR tried to bounce again but shares couldn't close over resistance near $50 and its 10-dma. The stock did manage +0.5% gain. Readers may want to wait for a drop under $49.30 before initiating new positions. Just remember that April puts expire in four trading days so consider buying May puts.

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: 73.06 change: -1.02

Stop Loss: 77.25
Target(s): 70.50
Current Option Gain/Loss: +21.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16 update: WTW underperformed the major indices with a -1.3% decline and a new lower low. I'm not suggesting new positions. We only have four 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

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 BEARISH PLAYS

Apache Corp. - APA - close: 92.27 change: -1.38

Stop Loss: 97.05
Target(s): 92.00
Current Option Gain/Loss: Apr97.5p:+131.2% & May95p: +72.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16 update: Target achieved. APA dipped to $91.80. Our exit target was $92.00.

- Suggested Positions -

Apr $97.50 PUT (APA1221P97.5) Entry $2.40 exit $5.55 (+131.2%)

- or -

May $95 PUT (APA1219Q95) Entry $2.90 exit $5.00 (+72.4%)

04/16/12 target hit @ 92.00
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