Editor's Note:

Big cap technology names continue to underperform this week. The NASDAQ-100 index fell -0.5%. Overall our candidates didn't see a lot of movement today. We did close our ORLY trade to avoid holding over earnings.

Current Portfolio:


CALL Play Updates

Cigna Corp. - CI - close: 48.10 change: +0.02

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:
04/24 update: CI was little changed on Tuesday. We are 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: 66.11 change: -1.98

Stop Loss: 64.75
Target(s): 69.25
Current Option Gain/Loss: - 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/24 update: Ouch! FDO underperformed the market today with a -2.9% plunge to short-term support at the 10-dma. Our +55% gain in the call option has vanished. More conservative traders may want to exit immediately to avoid or minimize any losses. I am not suggesting new positions. Our exit target is $69.25.

- Suggested Positions -

Long May $65 call (FDO1219E65) Entry $2.44

04/24/12 FDO hit some profit taking. Cautious traders may want to exit early now.
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


PriceSmart Inc. - PSMT - close: 77.71 change: -3.50

Stop Loss: 76.99
Target(s): 84.75
Current Option Gain/Loss: -56.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/24 update: Uh-oh! Our new play on PSMT was just triggered yesterday with a breakout to new highs. Today the stock is reversing hard with a -4.3% decline. Shares found short-term support near $77.00 like we thought it might. Today's move certainly looks like a one-day bearish reversal candlestick pattern. If there is any follow through lower tomorrow odds are PSMT will hit our stop loss at $76.99.

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

04/24/12 PSMT is underperforming with a -4.3% reversal lower.
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: 53.25 change: -0.18

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:
04/24 update: RGR managed to tag a new multi-year high midday above $54.00 but shares gave back all of its intraday gains. The stock should have short-term support near $52.00 and $50.00.

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: 46.38 change: -0.08

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss:(Apr$45P: -100%) & May45P: -46.8%
Time Frame: up to its April 26th earnings report
New Positions: see below

Comments:
04/24 update: It was a quiet day for ETQ with the stock churning sideways. We will exit this position tomorrow at the closing bell (April 25th) to avoid holding over earnings on the 26th.

- Suggested Positions -

Long May $45 PUT (EQT1219P45) Entry $1.60

04/24/12 prepare to exit tomorrow at the close
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: 79.70 change: +0.60

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: -24.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/24 update: The IWM saw just enough of a bounce today to fill the gap from Monday morning. The ETF is still trading with a bearish trend of lower highs. I would still consider new bearish positions here.

- 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: 46.87 change: -0.51

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: +13.3% or May$45p: +7.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/24 update: JOSB sank to a new relative low with today's -1.0% decline. More conservative traders may want to start inching down their stop loss.

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


Royal Gold, Inc. - RGLD - close: 59.25 change: +0.16

Stop Loss: 61.70
Target(s): 55.50
Current Option Gain/Loss: May60p: - 6.1% May57.5p: -20.6%
Time Frame: exit prior to earnings on May 3rd.
New Positions: Yes, see below

Comments:
04/24 update: Gold prices and gold miners managed a little bit of an oversold bounce today. The rebound in RGLD was pretty minor. Our trade opened this morning with RGLD at $59.24. The $60.00 level should be short-term overhead resistance.

Earlier Comments:
Please note I do have a couple of concerns. We don't have a lot of time. RGLD is due to report earnings on May 3rd and we don't want to hold over the report. Secondly the GLD gold ETF has dipped to possible technical support at its 300-dma. The metal could bounce right here. More cautious traders may want to wait for the GLD to close under this technical support before considering bearish positions on RGLD.

We want to keep our position size small to limit our risk. FYI: The Point & Figure chart for RGLD is bearish with a $51 target.

(small positions) - Suggested Positions -

Long May $60 PUT (RGLD1219Q60) Entry $2.45

- or -

Long May $57.50 PUT (RGLD1219Q57.5) Entry $1.45

Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (confirmed)
Average Daily Volume = 584 thousand
Listed on April 23, 2012


SINA Corp. - SINA - close: 56.82 change: +0.18

Stop Loss: 62.75
Target(s): 51.00
Current Option Gain/Loss: +22.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/24 update: SINA managed a little bit of an oversold bounce today. I would not be surprised to see shares bounce back toward overhead resistance near $60.00 if the market managed another up day. I'm not suggesting new positions at this time. More conservative traders may want to tighten their stops.

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

O'Reilly Automotive - ORLY - close: 95.00 change: -0.35

Stop Loss: 91.95
Target(s): 98.50
Current Option Gain/Loss: (Apr90c: +76.0%) & May$90c: +59.4%
Time Frame: exit prior to April 25th earnings
New Positions: see below

Comments:
04/24 update: Shares of ORLY were upgraded to a "neutral" this morning. That may have accounted for the spike toward $98.00 this morning. Unfortunately the rally didn't hold and ORLY underperformed the market. Shares saw an intraday spike down to $93.34 this afternoon before paring its losses. It was our plan to exit today at the closing bell to avoid holding over earnings tomorrow.

- Suggested Positions - Long May $90 call (ORLY1219E95) Entry $3.95 exit $6.30 (+59.4%)

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

chart:

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