Editor's Note:

The U.S. markets stumbled lower into the new week. We still had two trades get triggered (PSMT and IWM). Plus, we closed our R trade prior to earnings.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 48.08 change: +0.06

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:
04/23 update: CI managed to buck the market's down trend today and eke out a gain. However, we're running out of time with CI's earnings report coming up on May 3rd and this CI trade isn't open yet.

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

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: 68.09 change: -0.25

Stop Loss: 64.75
Target(s): 69.25
Current Option Gain/Loss: +55.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/23 update: FDO held up pretty well on Monday. The stock found pretty solid support near $67.25 for the first half of the day. Given a little bit more time FDO may have closed in positive territory. I am not suggesting new positions. Our exit target is $69.25.

More conservative traders may want to raise their stop loss.

- 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

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: 95.35 change: -1.10

Stop Loss: 91.95
Target(s): 98.50
Current Option Gain/Loss: (Apr90c: +76.0%) & May$90c: +62.0%
Time Frame: exit prior to April 25th earnings
New Positions: see below

Comments:
04/23 update: ORLY hit some profit taking today with an intraday dip under its simple 10-dma. The stock pared its losses by the close but still lost -1.1%. ORLY is due to report earnings on Wednesday after the closing bell. I am suggesting we exit positions tomorrow at the close to avoid holding over earnings.

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

04/23/12 prepare to exit positions tomorrow at the close
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

Entry on March 26 at $91.25
Earnings Date 04/25/12 (confirmed)
Average Daily Volume = 887 thousand
Listed on March 24, 2012


PriceSmart Inc. - PSMT - close: 81.21 change: +1.24

Stop Loss: 76.99
Target(s): 84.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23 update: PSMT continues to show relative strength. The stock gapped down this morning but traders bought the dip and shares powered to a new high. Our trigger to buy calls was hit at $80.75.

Earlier Comments:
The daily chart has an inverse head-and-shoulders pattern that is forecasting an $88 target. Our exit target is $84.75. More conservative traders may want to consider a tighter stop loss. FYI: The Point & Figure chart for PSMT is bullish with a $95 target.

- Suggested Positions -

Long May $80 call (PSMT1219E80) Entry $3.30

04/23/12 triggered at $80.75

Entry on April 23 at $80.75
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 313 thousand
Listed on April 21, 2012


Sturm, Ruger & Co. - RGR - close: 53.43 change: -0.01

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: +10.8%
Time Frame: exit prior to May 1st earnings announcement
New Positions: see below

Comments:
04/23 update: Shares of RGR also held up well today. Traders bought the dip twice near $52.00 this morning and RGR pared its losses to virtually unchanged by the close. There is no change from my prior comments. 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

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: 46.46 change: -0.21

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss:(Apr$45P: -100%) & May45P: -43.7%
Time Frame: up to its April 26th earnings report
New Positions: see below

Comments:
04/23 update: EQT bounced off its morning lows but the intraday rally reversed near $47.00. We're almost out of time for this trade. I'm not suggesting new positions.

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

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: 79.10 change: -1.11

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: -10.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/23 update: The market's major indices have broken down from their recent bear-flag pattern. The IWM gapped down this morning at $78.98 and dipped to $78.31 intraday. Our trigger to buy puts was hit at $78.65. I would still consider new positions now or you could wait for a bounce near $80 as your entry point.

- Suggested Positions -

Long Jun $77 PUT (IWM1216R77) Entry $2.50

04/23/12 triggered at $78.65
04/21/12 adjust trigger to $78.65

Entry on April 23 at $78.65
Earnings Date --/--/--
Average Daily Volume = 53 million
Listed on April 19, 2012


Jos. A Bank Clothiers - JOSB - close: 47.38 change: -0.59

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: + 0.0% or May$45p: -7.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23 update: Monday proved to be a relatively boring session for JOSB. The stock gapped down at the open and then traded sideways in a narrow range the rest of the session. I would still consider new bearish positions here or you could look for a bounce into the $48.00-48.50 zone as a new entry point.

Earlier Comments:
We want to limit our position size because JOSB has an elevated amount of short interest. The most recent data listed short interest at 18.7% of the very small 27.5 million share float and this raises the risk for a short squeeze. Our short-term target is $45.25. More aggressive traders may want to aim for the $42-41 area instead.

(small positions)

Long May $50 PUT (JOSB1219Q50) Entry $3.00

- or -

Long May $45 PUT (JOSB1219Q45) Entry $0.65

Entry on April 23 at $47.50
Earnings Date 05/30/12 (unconfirmed)
Average Daily Volume = 596 thousand
Listed on April 21, 2012


SINA Corp. - SINA - close: 56.64 change: -1.61

Stop Loss: 62.75
Target(s): 51.00
Current Option Gain/Loss: +24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23 update: So far so good with our SINA put play. Shares spiked down to $55.33 intraday. The stock underperformed the broader market with a -2.7% decline. I am not suggesting new positions at current levels. More conservative traders may want to lower their stop loss closer to the simple 10-dma (currently at 60.61).

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 BEARISH PLAYS

Ryder System, Inc. - R - close: 48.38 change: -0.82

Stop Loss: 50.25
Target(s): 45.50
Current Option Gain/Loss:(Apr50p: -15.0%) & May$50p: +41.6%
Time Frame: exit before April 24th earnings report
New Positions: see below

Comments:
04/23 update: We have run out of time with our Ryder put play. The plan was to exit tonight at the close to avoid holding over tomorrow's earnings report. Fortunately the stock gapped open lower and ended the day with a -1.6% decline.

- Suggested Positions -

May $50 PUT (R1218Q50) Entry $1.80 exit $2.55 (+41.6%)

04/23/12 planned exit at the close
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