Editor's Note:

Our PSMT trade has been stopped out. NTES and FISV were both triggered.

Current Portfolio:


CALL Play Updates

Airgas Inc. - ARG - close: 91.71 change: -0.33

Stop Loss: 89.65
Target(s): 97.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/07 update: ARG held up reasonably well in spite of the market's weakness on Monday. Shares spent the day drifting sideways. The high last Thursday was $92.40 while the low was $89.75. I am suggesting a trigger to buy calls at $92.50 with a stop loss at $89.65. Our multi-week target is $97.50. FYI: The Point & Figure chart for ARG is bullish with a $119 target.

NOTE: We want to keep our position size small. You could argue that ARG is forming a wedge pattern, which could be considered bearish.

Trigger @ 92.50 (small positions)

- Suggested Positions -

buy the May $92.50 call (ARG1219E92.5)

- or -

buy the Jun $95.00 call (ARG1216F95)

Entry on May xx at $ xx.xx
Earnings Date 05/03/12
Average Daily Volume = 476 thousand
Listed on May 05, 2012


3M Co. - MMM - close: 88.01 change: -0.66

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:
05/07 update: MMM is flirting with a breakdown under support near $88.00. If we see a close under $88 we'll drop MMM as a bullish candidate. 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: 60.08 change: +0.30

Stop Loss: 58.95
Target(s): 64.75
Current Option Gain/Loss: May60c: -11.3% & May65c: - 7.1%
Time Frame: exit prior to the May 16th earnings report
New Positions: Yes, see below

Comments:
05/07 update: After a quiet week shares of NTES displayed a little volatility on Monday. Shares bounced off support near $59.00 this morning and then rallied to $61.00 before paring its gains. Our trigger to buy calls was hit at $60.75. More conservative traders may want to wait for a new rally past $61.00 before considering new positions.

NTES is due to report earnings on May 16th and we do not want to hold over the report.

(small positions) - Suggested Positions -

Long May $60 call (NTES1219E60) Entry $2.65

- or -

Long May $65 call (NTES1219E65) Entry $0.70

05/07/12 triggered @ 60.75
05/05/12 new stop loss at $58.90, if triggered. Trade still not open yet. Do not hold over the May 16th earnings report

Entry on May 07 at $60.75
Earnings Date 05/16/12 (confirmed)
Average Daily Volume = 588 thousand
Listed on April 28, 2012


United Natural Foods - UNFI - close: 50.41 change: +0.16

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: + 5.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/07 update: UNFI displayed a little relative strength today with a +0.3% gain. The trend remains higher but consider using small positions to limit our risk.

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: 53.53 change: +0.06

Stop Loss: 55.25
Target(s): 51.50
Current Option Gain/Loss: May $55p: +44.0% & Jun$55p: +27.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/07 update: The bounce in COL today was a bit surprising considering the market's weakness. The trend is down but shares could see an oversold bounce back toward resistance near $55.00. I am not suggesting new positions at this time.

- Suggested Positions -

Long May $55 PUT (COL1219Q55) Entry $1.25

- or -

Long Jun $55 PUT (COL1216R55) Entry $1.85

05/05/12 new stop loss @ 55.25
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


Fiserv, Inc. - FISV - close: 67.06 change: -0.45

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: May$70p: - 7.6% & Jun65P: - 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07 update: Our new put play on FISV has been triggered. Shares actually gapped open lower at $67.26. That was below our trigger of $67.40. The stock did find some support near $67.00 but the trend is definitely down. Our target is $63.50 although I am expecting the $65.00 level to offer some support so expect a bounce near $65.

- Suggested Positions -

Long May $70 put (FISV1219Q70) Entry $3.02

- or -

Long Jun $65 put (FISV1216R65) Entry $0.90

05/07/12 triggered on gap down at $67.26 (our trigger was 67.40)

Entry on May 07 at $67.26
Earnings Date 05/01/12
Average Daily Volume = 693 thousand
Listed on May 05, 2012


Helmerich & Payne Inc. - HP - close: 47.63 change: +0.16

Stop Loss: 50.55
Target(s): 45.25
Current Option Gain/Loss: May50p: +14.0% & Jun45p: +12.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/07 update: HP saw a bit of an oversold bounce back to the $48.00 level. I would not be surprised to see it bounce a little more before rolling over again. Wait for the bounce to reverse before launching new positions.

- Suggested Positions -

Long May $50 PUT (HP1219Q50) Entry $2.50

- or -

Long Jun $45 PUT (HP1216R45) Entry $1.20

05/05/12 new stop loss @ 50.55
05/04/12 HP gapped down at $48.57

Entry on May 04 at $48.57
Earnings Date 07/27/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on May 03, 2012


Jos. A Bank Clothiers - JOSB - close: 46.97 change: -0.43

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: May50p: - 3.3% or May$45p: -61.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07 update: JOSB slowly drifted lower and ended the session with a -0.9% decline. I would still consider new positions at this time.

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

05/05/12 new stop loss @ 49.25

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: 66.01 change: -0.51

Stop Loss: 70.25
Target(s): 65.25
Current Option Gain/Loss: + 82.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07 update: Shares of JOY continue to sink although the stock did find support near $65.70 this morning. There is no change from my prior comments. Right now our exit target is $65.25. More aggressive traders may want to aim for the $62-60 zone instead. I am lowering our stop loss to $70.25.

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

05/05/12 new stop loss @ 70.25.
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: 87.98 change: -0.07

Stop Loss: 91.55
Target(s): 86.00
Current Option Gain/Loss: +31.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07 update: I am surprised that SI did not see bigger losses today considering the angst in Europe over the recent election results in France and Greece. The stock dipped to $87.34 and then recovered to close almost unchanged. This could be a set up for an oversold bounce back toward resistance near $90.00. I am not suggesting new positions at this time.

Our exit target is $86.00 but readers might want to aim even lower.

Earlier Comments:
The plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for SI is bearish with a $74 target.

(small positions) - Suggested Positions -

Long May $90 PUT (SI1219Q90) Entry $2.06

05/04/12 SI gapped open lower at $89.63, under our entry trigger of $89.75.

Entry on May 04 at $89.63
Earnings Date 04/25/12
Average Daily Volume = 839 thousand
Listed on May 02, 2012


Ulta Salon - ULTA - close: 86.06 change: -1.43

Stop Loss: 92.15
Target(s): 82.50
Current Option Gain/Loss: + 7.4%
Time Frame: up to May option expiration
New Positions: see below

Comments:
05/07 update: ULTA has continued to sink and shares are now testing their late April lows. The stock looks poised to drop. However, after the bell ULTA made a couple of announcements. First they announced that there would be a secondary offering of stock of 7 million shares from one of its large investors. That's an increase of 11.2% to the number of shares outstanding if I'm reading that correctly. That should be bearish and drive the stock lower. However, ULTA also raised their Q1 earnings and revenue guidance. That has the stock trading higher after hours in the $89.00 area.

I am expecting ULTA to gap higher. The question is how high will this spike higher actually reach? More conservative traders may want to lower their stop loss toward the $90.00 level. I am not suggesting new positions at this time.

- 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

PriceSmart Inc. - PSMT - close: 76.51 change: -4.95

Stop Loss: 78.85
Target(s): 85.75
Current Option Gain/Loss: -69.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07 update: PSMT reported April same-store sales figures this morning and investors were not happy. Analysts were expecting +12.0% growth. PSMT reported +8.6% sales growth. Shares were crushed with a -6% plunge on Monday. The stock broke support near $80.00, broke down from its bullish channel higher, and hit our stop loss at $78.85.

- Suggested Positions -

May $80 call (PSMT1219E80) Entry $3.30 exit $1.00 (-69.6%)

05/07/12 stopped out at $78.85
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

chart:

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