Editor's Note:

Last night AAPL blew away Wall Street's earnings estimates and the stock's big surge higher helped spark a widespread bounce in stocks.

Current Portfolio:


CALL Play Updates

Family Dollar Stores - FDO - close: 66.90 change: +0.79

Stop Loss: 64.75
Target(s): 69.25
Current Option Gain/Loss: +16.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/25 update: FDO recouped a good chunk of yesterday's losses as traders bought the dip near its 10-dma. Unfortunately the rally ran out of steam early on and FDO spent most of the day drifting sideways. 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: 78.82 change: +1.11

Stop Loss: 76.99
Target(s): 84.75
Current Option Gain/Loss: -45.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/25 update: PSMT regained about a third of yesterday's sell-off. The bounce this morning failed at the $80.00 mark which is a little troubling. I'm not suggesting new positions at this time although PSMT remains inside its narrow, bullish channel.

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: 54.60 change: +1.35

Stop Loss: 49.90
Target(s): 54.85
Current Option Gain/Loss: +18.9%
Time Frame: exit prior to May 1st earnings announcement
New Positions: see below

Comments:
04/25 update: RGR displayed relative strength with a +2.5% gain. The stock hit $54.77 intraday. Our exit target is $54.85 but more aggressive traders may want to aim higher. Please note I am adjusting our stop loss to $49.90 and more conservative traders may want to place their stop closer to the 20 or 10-dma instead. I am not suggesting new positions at this time.

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

- Suggested Positions -

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

04/25/12 new stop loss @ 49.90
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

iShares Russell 2000 index - IWM - close: 80.94 change: +1.24

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: -42.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/25 update: AAPL ignited a broad-based rally and the small caps enjoyed a nice bounce. The IWM gapped open higher but the rally struggled to get past technical resistance near its 40 and 50-dma, directly overhead. Today's low was $80.53. Readers may want to wait for a new drop under $80.50 as a new entry point to buy puts.

- 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: 47.20 change: +0.33

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: + 3.3% or May$45p: -15.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/25 update: The bounce in JOSB was pretty meager and shares pared their gains by the closing bell. 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: 60.92 change: +1.67

Stop Loss: 61.70
Target(s): 55.50
Current Option Gain/Loss: May60p: -40.8% May57.5p: -55.1%
Time Frame: exit prior to earnings on May 3rd.
New Positions: Yes, see below

Comments:
04/25 update: The gold mining stocks were big outperformers today even though the price of gold didn't actually move that much. The GDX gold mining ETF rallied +2.5%. Shares of RGLD outperformed with a +2.8% gain. If this stocks sees any follow through higher tomorrow we could see shares hit our stop loss at $61.70. I am not suggesting new positions at this time.

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: 56.99 change: +0.17

Stop Loss: 61.65
Target(s): 51.00
Current Option Gain/Loss: +22.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/25 update: SINA did not see much participation in the market's widespread rally today. That's good news if you're bearish. If the market continues to bounce we could see SINA test overhead resistance near $60.00. I am lowering our stop loss down to $61.65.

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

04/25/12 new stop loss @ 61.65
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


Tiffany & Co - TIF - close: 68.41 change: +2.48

Stop Loss: 67.65
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the late May earnings report
New Positions: Yes, see below

Comments:
04/25 update: Shares of TIF went the opposite direction today with a big rally higher (+3.7%). Technically today is a bullish breakout from its three-week trading range. If shares remain above $68.00 by tomorrow's closing bell then we will drop it as a bearish candidate.

Currently the plan is to buy puts if TIF trades at $65.40 or lower.

Trigger @ 65.40

- Suggested Positions -

buy the May $65 PUT (TIF1219Q65)

- or -

buy the Jun $65 PUT (TIF1216R60)

Entry on April xx at $ xx.xx
Earnings Date 05/24/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 24, 2012


CLOSED BULLISH PLAYS

Cigna Corp. - CI - close: 48.21 change: +0.11

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:
04/25 update: I'm giving up on CI. Shares did show some strength this morning but the rebound faded. We're running out of time. CI reports earnings on May 3rd and we do not want to hold over the report.

I am removing CI from the newsletter. Our trade never opened.

Trigger @ $49.05 (small positions)

Trade never opened.

04/25/12 removed from the newsletter
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


CLOSED BEARISH PLAYS

EQT Corp. - EQT - close: 47.41 change: +1.03

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss:(Apr$45P: -100%) & May45P: -65.6%
Time Frame: up to its April 26th earnings report
New Positions: see below

Comments:
04/25 update: EQT is definitely not cooperating with us. The market's widespread bounce today fueled a +2.2% rebound in EQT. It was our plan to exit today at the closing bell to avoid holding over the earnings report out tomorrow morning.

- Suggested Positions -

May $45 PUT (EQT1219P45) Entry $1.60 exit $0.55 (-65.6%)

04/25/12 planned exit to avoid earnings tomorrow
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

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