Editor's Note:

Shares of Family Dollar Stores (FDO) hit our exit target on Friday. Elsewhere we had planned to exit our IWM trade at the open.

Current Portfolio:


CALL Play Updates

Capital One Financial - COF - close: 56.06 change: +1.22

Stop Loss: 53.45
Target(s): 59.00
Current Option Gain/Loss: May55c: +35.0% & Jun57.5c: +30.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/28 update: COF was starting to show some relative strength on Friday with a +2.2% gain. The stock is now convincingly above resistance near $55 and its 20-dma. I would use Friday's move as a new entry point or you could wait for a new dip into the $55.50-55.00 zone as your entry point. FYI: The Point & Figure chart for COF is bullish with a $62 target.

- Suggested Positions -

Long May $55 call (COF1219E55) Entry $1.40

- or -

Long Jun $57.50 call (COF1216F57.5) Entry $1.07

04/26/12 triggered at $55.25

chart:

Entry on April 26 at $55.25
Earnings Date 07/11/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on April 25, 2012


3M Co. - MMM - close: 89.36 change: +0.04

Stop Loss: 88.45
Target(s): 94.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/28 update: MMM's performance on Friday was disappointing. The stock churned sideways and closed virtually unchanged on the day. There is no change from my Thursday comments.

I am suggesting a trigger to buy calls at $90.25 with a stop at $88.45. Our multi-week target is $94.50.

Trigger @ 90.25

- Suggested Positions -

buy the May $90 call (MMM1219E90)

- or -

buy the Jun $90 call (MMM1216F90)

chart:

Entry on April xx at $ xx.xx
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 26, 2012


PriceSmart Inc. - PSMT - close: 83.12 change: +3.72

Stop Loss: 77.65
Target(s): 84.75
Current Option Gain/Loss: +21.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/28 update: Friday was a big day for PSMT. Shares rallied past $80.00 again and rallied past its prior higher from a few days ago. The stock ended Friday's session up +4.6%. Our exit target is $84.75 but more aggressive traders may want to aim higher. Please note that I am raising our stop loss to $77.65, which is just under Thursday's low.

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

04/28/12 new stop loss @ 77.65
04/24/12 PSMT is underperforming with a -4.3% reversal lower.
04/23/12 triggered at $80.75

chart:

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


PUT Play Updates

Rockwell Collins - COL - close: 56.27 change: +0.64

Stop Loss: 56.15
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/28 update: The market's bullishness this past week has helped power a bounce in shares of COL. Currently we are waiting for a breakdown to new relative lows. I am suggesting we buy puts if COL hits $54.75 or lower. However, if COL continues to bounce we'll probably drop it soon as a bearish candidate.

Trigger @ 54.75

- Suggested Positions -

buy the May $55 PUT (COL1219Q55)

- or -

buy the Jun $55 PUT (COL1216R55)

chart:

Entry on April xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on April 25, 2012


Jos. A Bank Clothiers - JOSB - close: 48.31 change: +0.69

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: -26.6% or May$45p: -53.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/28 update: The market's widespread bounce on Friday finally helped push JOSB above short-term resistance near $48.00 yet the bounce stalled near prior support and new resistance in the $48.80 area. JOSB's larger trend is still bearish and the rebound should roll over here.

I am leaving our stop loss at $50.25 tonight but more conservative traders may want to lower theirs toward the 20-dma near $49.40 or closer to the $49.00 level instead.

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

chart:

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


Joy Global, Inc. - JOY - close: 71.60 change: -0.63

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/28 update: Good news! There was no follow through on Thursday's bullish reversal candlestick. Instead JOY's rally attempt on Friday morning quickly ran out of steam and the stock underperformed with a -0.8% decline. We're still waiting for a breakdown under support near $70.00.

I am suggesting we launch small bearish positions if shares hit $69.75. We'll try and limit our risk with a stop loss at $72.25 but I have to warn you that JOY can be a volatile stock. Adding to the volatility has been the occasional rumor that JOY might be a takeover target.

If triggered at $69.75 we will target a drop to $65.25. More aggressive traders could aim for the $62-60 zone.

Trigger @ 69.75 (small positions)

- Suggested Positions -

buy the May $70 PUT (JOY1219Q70)

chart:

Entry on April xx at $ xx.xx
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 25, 2012


SINA Corp. - SINA - close: 59.22 change: +0.20

Stop Loss: 61.15
Target(s): 51.00
Current Option Gain/Loss: -27.2%
Time Frame: exit prior to the mid May earnings report
New Positions: see below

Comments:
04/28 update: SINA failed to breakout past resistance at the $60.00 level. Shares did see an intraday move to $60.04 but the stock failed to close over this resistance. I will note that it did close above its simple 10-dma. More conservative traders may want to lower their stop loss closer to the $60.00 area. I am not suggesting new positions at this time.

Remember, we want to exit prior to the mid-May earnings report (that's still not confirmed yet).

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

04/26/12 new stop loss @ 61.15
04/25/12 new stop loss @ 61.65
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 BULLISH PLAYS

Family Dollar Stores - FDO - close: 69.05 change: +1.73

Stop Loss: 64.75
Target(s): 69.25
Current Option Gain/Loss: +82.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/28 update: Target achieved.

FDO displayed relative strength on Friday with a +2.5% gain. The stock was higher intraday with a rise to $69.50. Our exit target was $69.25.

- Suggested Positions -

May $65 call (FDO1219E65) Entry $2.44 exit $4.45 (+82.3%)

04/26/12 target hit at $69.25
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

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


CLOSED BEARISH PLAYS

iShares Russell 2000 index - IWM - close: 82.38 change: +0.64

Stop Loss: 82.25
Target(s): 75.50
Current Option Gain/Loss: -55.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/28 update: As expected the market opened higher on Friday. On Thursday night we decided to exit our IWM positions at the open on Friday. Unfortunately Monday's breakdown from the bear-flag consolidation pattern proved to be a bear-trap instead! Stocks have been up every day since then. Now the IWM is back above resistance near its 50-dma and the $82 level.

The IWM opened at $81.98 on Friday.

- Suggested Positions -

Jun $77 PUT (IWM1216R77) Entry $2.50 exit $1.12 (-55.2%)

04/27/12 planned exit at the open on Friday
04/26/12 prepare to exit tomorrow at the open
04/23/12 triggered at $78.65
04/21/12 adjust trigger to $78.65

chart:

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