Editor's Note:

It was a bumpy week for stocks but the market closed on a quiet note. Our BWA trade was closed. DTG was stopped out.

Readers may want to consider taking profits early in our FDO and ORLY trades.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 48.02 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:
04/21 update: CI did not see much movement on Friday. Shares essentially closed unchanged. The stock has been consolidating sideways for two weeks now. You can see on the daily chart that this consolidation is narrowing and CI should see a breakout one way or the other soon.

I am suggesting a trigger to buy calls at $49.05. It is possible that the $50.00 level is overhead resistance so we want to keep our position size small. Plus, we want to exit prior to the May 3rd earnings report. FYI: The Point & Figure chart for CI is bullish with a $60 target.

Trigger @ $49.05 (small positions)

- Suggested Positions -

buy the May $50 call (CI1219E50)

04/19/12 adjust trigger to $49.05

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


Family Dollar Stores - FDO - close: 68.34 change: +0.85

Stop Loss: 64.75
Target(s): 69.25
Current Option Gain/Loss: +59.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/21 update: This stock was showing relative strength again on Friday. FDO hit another record high. Readers may want to seriously consider taking profits off the table right now. I am not suggesting new positions. We are moving our exit target down to $69.25 and moving our stop loss up to $64.75.

- Suggested Positions -

Long May $65 call (FDO1219E65) Entry $2.44

04/21/12 new stop loss @ 64.75, adjust exit target to $69.25
Readers may want to go ahead and take profits now (option @ $3.90, +59%)
04/18/12 new stop loss @ 63.75
04/18/12 triggered at $65.35

chart:

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: 96.45 change: +0.46

Stop Loss: 91.95
Target(s): 98.50
Current Option Gain/Loss: (Apr90c: +76.0%) & May$90c: +82.2%
Time Frame: exit prior to April 25th earnings
New Positions: see below

Comments:
04/21 update: Friday proved to be a quiet day for ORLY. The trend remains higher but we're almost out of time. ORLY is due to report earnings on April 25th and we do not want to hold over the report. Readers may want to take profits now. Currently our exit target is $98.50 but we'll plan on exiting on Tuesday or Wednesday if shares don't hit our exit by then.

I am not suggesting new positions at current levels.

- Suggested Positions - Long May $90 call (ORLY1219E95) Entry $3.95

04/21/12 we want to exit prior to the April 25th earnings report
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

chart:

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: 53.44 change: +1.92

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: + 0.0%
Time Frame: exit prior to May 1st earnings announcement
New Positions: see below

Comments:
04/21 update: After Thursday's questionable trading session it was nice to see RGR showing relative strength on Friday with a +3.7% gain. This is a new all-time high for RGR. Our exit target is $54.85 but more aggressive traders may want to aim higher.

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

chart:

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

EQT Corp. - EQT - close: 46.67 change: -0.32

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:
04/21 update: EQT saw an intraday spike toward resistance near $48.00 and its 20-dma before reversing lower on Friday. This move looks like a new bearish entry point to buy puts.

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

- Suggested Positions -

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

chart:

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


iShares Russell 2000 index - IWM - close: 80.21 change: +0.46

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
04/21 update: The intraday bounce in the IWM didn't get very far before starting to fade. The small cap ETF did close up on Friday. We are waiting for a breakdown from what looks like a bear-flag consolidation pattern.

Potential support at the simple 100-dma has risen to $78.79. I am raising our trigger to buy puts to $78.65. Our target is $75.50.

Trigger @ 78.65

- Suggested Positions -

buy the Jun $77 PUT (IWM1216R77)

04/21/12 adjust trigger to $78.65

chart:

Entry on April xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 53 million
Listed on April 19, 2012


Ryder System, Inc. - R - close: 49.20 change: +0.17

Stop Loss: 50.25
Target(s): 45.50
Current Option Gain/Loss:(Apr50p: -15.0%) & May$50p: + 5.5%
Time Frame: exit before April 24th earnings report
New Positions: see below

Comments:
04/21 update: Shares of Ryder saw a minor bounce on Friday. The trend is down and R has broken significant support but we're almost out of time. The company is due to report earnings on Tuesday morning (April 24th) and we do not want to hold over the report. This means we need to exit the remainder of any positions on Monday at the closing bell. Please note that I am lowering our stop loss to $50.25.

- Suggested Positions -

Long May $50 PUT (R1218Q50) Entry $1.80

04/21/12 prepare to exit on Monday at the closing bell
New stop loss @ 50.25
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

chart:

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: 58.25 change: -0.75

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:
04/21 update: SINA did see a brief spike above $60.00 on Friday morning but the rebound reversed and it proved to be a new lower high in the current trend of lower highs. I would still consider new positions now 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

chart:

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 BEARISH PLAYS

BorgWarner - BWA - close: 80.59 change: -0.86

Stop Loss: 84.55
Target(s): 79.00
Current Option Gain/Loss: -100%
Time Frame: up to the April 26th earnings report
New Positions: see below

Comments:
04/21 update: The trend in BWA continues to look bearish. Unfortunately we ran out of time. Our April $80 puts have expired. We would have considered May puts but BWA is due to report earnings on April 26th and we do not want to hold over the announcement.

Earlier Comments:
We do want to keep our position size small.

- Suggested (small) Positions -

Apr $80 PUT (BWA1221P80) Entry $1.25, exit $0.00 (-100%)

04/21/12 April puts have expired
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

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


Dollar Thrifty Automotive - DTG - close: 79.11 change: +0.44

Stop Loss: 80.55
Target(s): 72.50
Current Option Gain/Loss: -51.4%
Time Frame: up to its early May earnings report
New Positions: see below

Comments:
04/21 update: The trading gods were in a fickle mood on Friday and shares of DTG saw an early morning spike above resistance before immediately reversing lower Our stop loss was hit at $80.55. The overall trend still looks bearish. I would be tempted to re-launch put positions here or on a drop below $78.00.

- Suggested Positions -

May $75 PUT (DTG1219Q75) Entry $1.75, exit $0.85* (-51.4%)

*exit is an estimate. option did not trade at time of our exit
04/20/12 stopped out at $80.55
04/17/12 new stop loss @ 80.55
04/17/12 DTG gapped open at $78.36

chart:

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