Editor's Note:

Shares of Ross Stores hit our bullish exit target today. Meanwhile our COL put trade was triggered.

Current Portfolio:


CALL Play Updates

Alliance Data Sys. - ADS - close: 128.30 change: -1.37

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:
05/03 update: No surprises here. The market's decline pulled ADS toward the bottom of its $128-130 trading range. We are waiting for a move higher. 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: 55.56 change: -0.52

Stop Loss: 54.25
Target(s): 59.00
Current Option Gain/Loss: May55c: + 0.0% & Jun57.5c: + 7.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/03 update: COF followed the market lower. Unfortunately today's -0.9% decline underperformed the rest of the financial sector. Technically today is a bearish engulfing candlestick (reversal) pattern. You could argue that COF has formed a short-term bearish head-and-shoulders pattern over the last four days that would suggest a downside target of $53.00 if it breaks under the $55.00 level. I am raising our stop loss up to $54.25.

- Suggested Positions -

Long May $55 call (COF1219E55) Entry $1.40

- or -

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

05/03/12 new stop loss @ 54.25
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: 89.39 change: -0.13

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:
05/03 update: There is nothing new to report here. MMM is still consolidating sideways under resistance near $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: 59.91 change: -0.25

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:
05/03 update: It was another quiet day for NTES. The stock's sideways consolidation narrowed significantly today as it hovered near $60.00. 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: 83.35 change: -0.03

Stop Loss: 78.85
Target(s): 85.75
Current Option Gain/Loss: + 9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03 update: PSMT actually held up pretty well. Shares only gave up three cents and bounced between the $82-84 levels. A breakout past $84.00 would be bullish. I am raising our exit target to $85.75. More aggressive trades may want to aim higher. We are raising the stop loss to $78.85.

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

05/03/12 new stop loss @ 78.85, adjust exit to $85.75
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


Praxair Inc. - PX - close: 116.18 change: -0.26

Stop Loss: 113.90
Target(s): 124.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/03 update: Shares of PX also held up reasonably well. The stock remains inside its short-term trading range of $115.25-117.00.

I am suggesting a trigger to buy calls at $117.25. We'll start this trade with a stop loss at $113.90 although more conservative traders may want to use a stop closer to $115.00 instead. The $120 level is potential round-number resistance but we are aiming for $124.50. FYI: The Point & Figure chart is bullish with a $145 target.

Trigger @ $117.25

- Suggested Positions -

buy the May $115 call (PX1219E115)

- or -

buy the Jun $120 call (PX1216F120)

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 01, 2012


United Natural Foods - UNFI - close: 49.86 change: +0.99

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: +15.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/03 update: I was expecting a bigger move in UNFI today but the rally may have been muted by the market's widespread decline. Shares still outperformed the major indices with a +0.88% gain.

FYI: The Point & Figure chart for UNFI is bullish with a long-term $82 target.

- Suggested Positions -

Long May $50 call (UNFI1219E50) Entry $0.95

Entry on May 03 at $49.90
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 250 thousand
Listed on May 02, 2012


PUT Play Updates

Rockwell Collins - COL - close: 54.59 change: -0.46

Stop Loss: 56.15
Target(s): 51.50
Current Option Gain/Loss: May $55p: -12.0% & Jun$55p: - 2.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/03 update: Our bearish trade on COL is finally open. The stock broke down under support near $55.00 and its simple 200-dma. The stock hit our trigger to buy puts at $54.75. I would still consider new positions now.

- Suggested Positions -

Long May $55 PUT (COL1219Q55) Entry $1.25

- or -

Long Jun $55 PUT (COL1216R55) Entry $1.85

05/03/12 triggered at $54.75

Entry on May 03 at $54.75
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on April 25, 2012


Jos. A Bank Clothiers - JOSB - close: 47.95 change: -0.78

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: May50p: -23.3% or May$45p: -61.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03 update: JOSB gave us a little bit of a scare this morning with a pop higher towards resistance near $49.00 but the rally lost steam and shares gave up -1.6% by the close. Technically today is an "inside day" so I would wait for a new drop under $47.50 before considering new bearish positions.

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: 68.59 change: -2.01

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: + 14.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03 update: Shares of JOY underperformed the market with a -2.8% decline. The stock has also closed below key support at the $70.00 level. Readers can use this move as a new entry point. We have a target at $65.25 but more aggressive traders may want to aim lower.

Earlier Comments:
The plan was to limit our risk by keeping our position size small. 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.

(small positions)- Suggested Positions -

Long May $70 PUT (JOY1219Q70) Entry $2.50

05/02/12 triggered at $69.75

Entry on May 02 at $69.75
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on April 25, 2012


Siemens AG - SI - close: 90.46 change: -0.81

Stop Loss: 91.55
Target(s): 86.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/03 update: SI inched lower today and shares are getting closer and closer to a breakdown under support near $90.00.

I am suggesting a trigger to buy puts at $89.75. Our target is $86.00. SI has support in the $85.50-85.00 zone from 2011. I am suggesting we keep our position size small. SI tends to gap open each day as it adjusts to trading back home in Europe. We'll use a stop loss at $91.55. FYI: The Point & Figure chart for SI is bearish with a $74 target.

Trigger @ 89.75 (small positions)

- Suggested Positions -

buy the May $90 PUT (SI1219Q90)

Entry on May xx at $ xx.xx
Earnings Date 04/25/12
Average Daily Volume = 839 thousand
Listed on May 02, 2012


Ulta Salon - ULTA - close: 90.85 change: -0.48

Stop Loss: 92.15
Target(s): 82.50
Current Option Gain/Loss: -62.9%
Time Frame: up to May option expiration
New Positions: see below

Comments:
05/03 update: Wow! It doesn't get any closer than that. Yesterday we raised our stop loss to $92.15 to give ULTA a little more room to maneuver. Shares spiked to $92.14 this morning before eventually settling lower. The stock seems to be consolidating in a bear-flag pattern but I would wait for a new drop under $90.00 before considering new bearish positions.

- Suggested Positions -

Long May $85 PUT (ULTA1219Q85) Entry $1.35

05/02/12 Readers may want to exit early right now. ULTA is not cooperating. I am adjusting our stop loss to $92.15.

Entry on May 01 at $87.95
Earnings Date 06/07/12 (unconfirmed)
Average Daily Volume = 651 thousand
Listed on April 30, 2012


CLOSED BULLISH PLAYS

Ross Stores Inc. - ROST - close: 63.71 change: -0.14

Stop Loss: 59.45
Target(s): 64.50
Current Option Gain/Loss: +131.8%
Time Frame: exit prior to the mid May earnings report
New Positions: , see below

Comments:
05/03 update: Target achieved.

Shares of ROST ended the session down 14 cents but not before surging to $64.79 intraday. Our exit target was hit at $64.50.

(small positions) - Suggested Positions -

May $62.50 call (ROST1219E62.5) Entry $1.10 exit $2.55 (+131.8%)

05/03/12 target hit at $64.50
05/02/12 readers might want to exit tomorrow at the close to lock in gains early. Our exit target remains $64.50. current option bid is $2.40 (+118.1%)

chart:

Entry on May 01 at $61.58
Earnings Date 05/17/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 30, 2012