Editor's Note:

Don't forget that April options will expire on Saturday. Tomorrow is your last day to trade them. We closed nearly all of our remaining April option positions today.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 48.21 change: -0.01

Stop Loss: 46.95
Target(s): 52.25
Current Option Gain/Loss: Unopened
Time Frame: up to the May 3rd earnings report.
New Positions: Yes, see below

Comments:
04/19 update: CI got a little bit closer but still hasn't hit our trigger to buy calls at $48.75. Volume was a little bit higher than recent days. I am suggesting we make an adjustment. Let's move our trigger to buy calls up to $49.05. I want to see a real move higher and not just a little intraday spike that gets reversed.

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 @ $49.05

- Suggested Positions -

buy the May $50 call (CI1219E50)

04/19/12 adjust trigger to $49.05

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


Family Dollar Stores - FDO - close: 67.49 change: +0.49

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: +39.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/19 update: FDO continued showing relative strength on Thursday and closed up +0.7%. I am not suggesting new positions at current levels. Broken resistance near $65.00 should be new support.

Our multi-week target is $69.75. FYI: The Point & Figure chart for FDO is bullish with an $88 target.

- Suggested Positions -

Long May $65 call (FDO1219E65) Entry $2.44

04/18/12 new stop loss @ 63.75
04/18/12 triggered at $65.35

Entry on April 18 at $65.35
Earnings Date 06/27/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 16, 2012


O'Reilly Automotive - ORLY - close: 95.99 change: -0.93

Stop Loss: 91.95
Target(s): 98.50
Current Option Gain/Loss: (Apr90c: +76.0%) & May$90c: +72.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/19 update: ORLY hit a little profit taking today with a -0.9% pullback. More conservative traders may want to exit now to lock in a gain.

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

04/17/12 new stop loss @ 91.95
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


Sturm, Ruger & Co. - RGR - close: 51.52 change: +0.06

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: -24.3%
Time Frame: exit prior to May 1st earnings announcement
New Positions: see below

Comments:
04/19 update: Our new trade on RGR is not off to a great start. Shares did show strength this morning and rallied to $53.05 intraday. Unfortunately RGR gave back almost all of its gains today. Our trigger was hit at $52.25. I'm not suggesting new positions at this time but nimble traders might want to consider buying calls on a dip or a bounce near the $50.00 mark.

We do not want to hold over the May 1st earnings report.

- Suggested Positions -

Long May $55 call (RGR1219E55) current ask $1.85

04/19/12 triggered at $52.25

Entry on April 19 at $52.25
Earnings Date 05/01/12 (confirmed)
Average Daily Volume = 493 thousand
Listed on April 18, 2012


PUT Play Updates

BorgWarner - BWA - close: 81.45 change: -2.38

Stop Loss: 84.55
Target(s): 79.00
Current Option Gain/Loss: -92.0%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/19 update: BWA is rolling over with its trend of lower highs. The -2.8% drop is a good sign for bears but we are almost out of time on our April $80 puts. Unless BWA closes under $80.00 tomorrow our options are going to expire worthless.

If we see BWA spike down under $80.00 tomorrow we will want to exit. I'll set an intraday exit target of $79.00. If this level isn't hit tomorrow we'll exit positions at the close assuming there is any value left in the option price.

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

04/19/12 prepare to exit tomorrow if under $80.00, setting a temporary exit target at $79.00
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


Dollar Thrifty Automotive - DTG - close: 78.67 change: -1.04

Stop Loss: 80.55
Target(s): 72.50
Current Option Gain/Loss: -11.4%
Time Frame: up to its early May earnings report
New Positions: see below

Comments:
04/19 update: DTG retreated from resistance near the $80.00 level and ended the session with a -1.3% decline. I would consider new positions if DTG trades under $78.25 again.

- Suggested Positions -

Long May $75 PUT (DTG1219Q75) Entry $1.75

04/17/12 new stop loss @ 80.55
04/17/12 DTG gapped open at $78.36

Entry on April 17 at $78.36
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 247 thousand
Listed on April 16, 2012


EQT Corp. - EQT - close: 46.99 change: +1.02

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss: Apr$45P: - 100% & May45P: -40.6%
Time Frame: up to its April 26th earnings report
New Positions: see below

Comments:
04/19 update: EQT spiked higher this morning and shares displayed relative strength the whole day. I doubt this was due to the yesterday afternoon announcement of a 22-cent dividend. Whatever caused the +2.2% bounce in EQT it is not a good sign for the bears. The stock should have resistance near $47.00 and at the 20-dma near $48.00.

The plan was to exit our April $45 puts at the close today, thus the oversold bounce was not great timing.

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

- Suggested Positions -

Apr $45 PUT (EQT1221P45) Entry $0.52 exit $0.00 (-100%)

- or -

Long May $45 PUT (EQT1219P45) Entry $1.60

04/19/12 planned exit for the April $45 puts, closed at $0.00 (-100%)
04/18/12 prepare to exit April $45 puts at the close tomorrow
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


Ryder System, Inc. - R - close: 49.03 change: -0.59

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Apr50p: -15.0% & May$50p: +22.2%
Time Frame: exit before April 24th earnings report
New Positions: see below

Comments:
04/19 update: Positive analyst comments this morning for shares of Ryder were not enough to keep the stock in positive territory. Shares fell to a -1.1% drop and a new relative low.

The plan was to exit our April $50 puts at the close today.

We want to exit our May position at the close on April 23rd to avoid holding over the April 24th earnings report.

- Suggested Positions -

Long Apr $50 PUT (R1221P50) Entry $1.00 exit $0.85 (-15%)

- or -

Long May $50 PUT (R1218Q50) Entry $1.80

04/19/12 planned exit for the April $50 put. $0.85 (-15%)
04/18/12 prepare to exit the April $50 puts at the close tomorrow
04/17/12 opened the May $50 put position
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


SINA Corp. - SINA - close: 59.00 change: +0.13

Stop Loss: 62.75
Target(s): 51.00
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: SINA delivered a relatively quiet day on Thursday. The early morning bounce attempt failed. I would still consider new positions here or you could wait for a new relative low under $57.65.

Earlier Comments:
SINA can be a volatile stock so we want to keep our position size small. Our exit target is $51.00 but we should expect some support in the $57.00-56.50 zone.

(small positions) - Suggested Positions -

Long May $55 PUT (SINA1219Q55) Entry $2.50

04/18/12 triggered at $59.40

Entry on April 18 at $59.40
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on April 17, 2012


CLOSED BULLISH PLAYS

Esterline Technologies - ESL - close: 67.67 change: -1.25

Stop Loss: 67.75
Target(s): 75.75
Current Option Gain/Loss: -84.6% (crazy bid/ask spread causing issues)
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/19 update: After yesterday's failed rally the weakness in ESL continued. Shares hit our stop loss at $67.75 closing our trade. The option spreads remain ridiculously wide, which is impacting our loss. We will probably not trade ESL again. (today's closing bid/ask spread was $0.20/1.15)

Earlier Comments:
FYI: I cautioned readers that the bid/ask spread was a little wide. Now the spread has exploded wider. If this doesn't change we won't trade ESL again. The plan was to keep our position size small because the option spreads are just a little wide.

(small positions) - Suggested Positions -

May $75 call (ESL1219E75) Entry $1.30 exit $0.20 (-84.6%)

04/19/12 stopped out at $67.75.
04/18/12 triggered at $70.55

chart:

Entry on April 18 at $70.55
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 361 thousand
Listed on April 17, 2012


Ulta Salon, Cosmetics - ULTA - close: 94.49 change: -1.07

Stop Loss: 92.75
Target(s): 97.00
Current Option Gain/Loss: -84.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: ULTA almost hit our new exit target at $97.00. The intraday high was $96.65 and the bid on our April $95 call hit an intraday high of $1.30. Unfortunately the market's widespread decline pulled ULTA to a -1.1% drop. It was our plan to exit these April options at the close today.

- Suggested Positions -

Apr $95 call (ULTA1221D95) Entry $1.65 exit $0.25 (-84.8%)

04/19/12 planned exit at the close
04/18/12 adjusted target to $97.00, stop loss to $92.75
Prepare to exit tomorrow at the close if ULTA doesn't hit our target
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


CLOSED BEARISH PLAYS

Timken Co. - TKR - close: 50.16 change: -0.11

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -86.8%
Time Frame: exit before the April 25th earnings report
New Positions: see below

Comments:
04/19 update: The trend in TKR still looks bearish as if the stock is poised to drop. Unfortunately we're out of time with our April puts. The plan was to exit today at the close. If you do have May puts I would not hold over the April 25th earnings report.

- Suggested (small) Positions -

Apr $50 PUT (TKR1221P50) Entry $1.90, exit $0.25 (-86.8%)

04/19/12 planned exit at the close
04/18/12 prepare to exit our April options at the close tomorrow
04/10/12 triggered at $48.90

chart:

Entry on April 10 at $48.90
Earnings Date 04/25/12 (confirmed)
Average Daily Volume = 846 thousand
Listed on April 09, 2012


Weight Watchers Intl. - WTW - close: 73.18 change: -0.82

Stop Loss: 77.25
Target(s): 70.50
Current Option Gain/Loss: - 4.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19 update: The bounce in WTW just failed at its 10-dma. The trend is down but we have run out of time. The plan was to exit our position today at the close.

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

- Suggested (small) Positions -

Apr $75 PUT (WTW1221P75) Entry $2.05 exit $1.95 (-4.8%)

04/19/12 planned exit at the close
04/18/12 prepare to exit at the closing bell tomorrow
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