Editor's Note:

Stocks spiked lower at the open this morning but equities were starting to pare their losses by the closing bell.

Current Portfolio:


CALL Play Updates

Alliance Data Sys. - ADS - close: 130.34 change: +0.53

Stop Loss: 126.75
Target(s): 137.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/30 update: Hmm... ADS underperformed the market on Monday. Shares spiked down at the open and ended the day with a -1.3% decline. It could just be a test of short-term support at the rising 10-dma. Currently we have a trigger to buy calls at $130.75. A breakout could spark some short covering. The most recent data listed short interest at 18% of the small 48.7 million share float.

Trigger @ $130.75

- Suggested Positions -

buy the May $130 call (ADS1219E130)

- or -

buy the Jun $135 call (ADS1216F135)

Entry on April xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 700 thousand
Listed on April 28, 2012


Capital One Financial - COF - close: 55.48 change: -0.58

Stop Loss: 53.45
Target(s): 59.00
Current Option Gain/Loss: May55c: + 0.5% & Jun57.5c: + 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/30 update: The stock market was mostly lower today and that pushed COF back toward prior resistance and new support near $55.00. I view today's pullback as a new bullish entry point to buy calls. 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

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: +0.00

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:
04/30 update: MMM continues to churn sideways and the stock closed unchanged on the session. We are waiting for a breakout past resistance at $90.00. 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)

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


NetEase, Inc. - NTES - close: 60.00 change: -0.42

Stop Loss: 57.95
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the mid May earnings report
New Positions: Yes, see below

Comments:
04/30 update: Traders bought the dip in NTES near $59 this morning. The stock managed to outperform the major indices with a +0.5% gain. Yet shares have not hit our trigger yet. I am suggesting we use a trigger to buy calls on a rise at $60.75. We'll use a stop loss at $57.95 to start. Our exit target is $64.75. We do not want to hold over the mid May earnings report. FYI: The Point & Figure chart for NTES is bullish with a $68 target.

Trigger @ $60.75

- Suggested Positions -

buy the May $60 call (NTES1219E60)

- or -

buy the May $65 call (NTES1219E65)

Entry on April xx at $ xx.xx
Earnings Date 05/16/12 (unconfirmed)
Average Daily Volume = 588 thousand
Listed on April 28, 2012


PriceSmart Inc. - PSMT - close: 82.54 change: -0.58

Stop Loss: 77.65
Target(s): 84.75
Current Option Gain/Loss: + 9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/30 update: After Friday's big gain the fact that PSMT only lost about 60 cents is a positive in my book. If the market dips again we can look for PSMT to find support near $80.00. I am not suggesting new positions at this time. Our exit target is $84.75 but more aggressive traders may want to aim higher.

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

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: 55.89 change: -0.38

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:
04/30 update: COL gave up -0.6%. I don't see any changes from my prior comments. 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)

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: 47.55 change: -0.76

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: - 8.3% or May$45p: -38.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/30 update: JOSB reversed lower with a sharp spike down on Monday morning. The stock underperformed the market with a -1.5% decline for the day.

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

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: 70.77 change: -0.83

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:
04/30 update: JOY gave up another -1.1% but most of that was at the open. Shares spent the day churning sideways. 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)

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: 58.51 change: -0.71

Stop Loss: 61.15
Target(s): 51.00
Current Option Gain/Loss: -24.4%
Time Frame: exit prior to the mid May earnings report
New Positions: see below

Comments:
04/30 update: SINA spiked lower this morning but managed a bounce back to unchanged before fading lower again. I don't see any changes from my weekend comments. 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.

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

Entry on April 18 at $59.40
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on April 17, 2012