Editor's Note:

JOY, SI, and ULTA all hit our bearish exit targets. NTES was stopped out on the market weakness. I have removed MMM as a candidate.

Current Portfolio:


CALL Play Updates

Airgas Inc. - ARG - close: 91.92 change: +0.39

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:
05/08 update: The widespread market weakness pushed ARG down toward support near $90.00 and the stock bounced all the way back to close in positive territory. I don't see any changes from my prior comments. 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


United Natural Foods - UNFI - close: 50.17 change: -0.24

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:
05/08 update: UNFI is still holding up pretty well. Shares traded below their 10-dma this morning but recovered to close back above the $50.00 level. I am not suggesting new positions at this time thanks to the market's recent weakness.

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

Baidu, Inc. - BIDU - close: 127.31 change: -0.66

Stop Loss: 133.05
Target(s): 115.00
Current Option Gain/Loss: May125P: +00.0% & Jun120P: + 6.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: Shares of BIDU opened at $127.01 and dipped to $123.60 before bouncing back sharply. The big bounce is a bit disappointing and should be bears on the defensive. If the market opens positive tomorrow we could see BIDU rebound toward the $130 area. I'd wait for a failed rally near $130 before considering new positions. FYI: The Point & Figure chart for BIDU is bearish with a $106 target.

- Suggested Positions -

Long May $125 put (BIDU1219Q125) Entry $2.10

- or -

Long Jun $120 put (BIDU1216R120) Entry $2.95

05/08/12 BIDU gapped open lower at $127.01

Entry on May 08 at $127.01
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on May 07, 2012


Rockwell Collins - COL - close: 53.53 change: +0.06

Stop Loss: 55.25
Target(s): 51.50
Current Option Gain/Loss: May $55p: +56.0% & Jun$55p: +32.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: COL is sinking but it's not moving very fast. Shares managed to close above support near the $53.00 area. Readers may want to go ahead and take profits now. I am expecting a little oversold bounce higher soon. 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: 66.54 change: -0.52

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: May$70p: + 9.2% & Jun65P: + 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08 update: FISV dipped under the $66 level intraday and closed with a -0.7% decline. More conservative traders might want to start lowering their stop loss. 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: 47.61 change: -0.02

Stop Loss: 50.55
Target(s): 45.25
Current Option Gain/Loss: May50p: +12.0% & Jun45p: +12.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08 update: HP dipped to $45.73 intraday and then bounced back to almost breakeven on the session. I see this as a potential bullish reversal. Readers need to be careful here. There is a good chance that HP will see an oversold bounce back toward the $49-50 zone. I am not suggesting new positions at this time.

- Suggested Positions -

Long May $50 PUT (HP1219Q50) Entry $2.50

- or -

Long Jun $45 PUT (HP1216R45) Entry $1.20

05/08/12 warning! HP has produced a big intraday bounce. This might be a short-term bullish reversal.
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: 46.76 change: -0.21

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: May50p: + 3.3% or May$45p: -46.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08 update: JOSB slipped to a new relative low before bouncing back and hovering under the $47 level the rest of the session. Given the big bounce back in the market today I am not suggesting 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


CLOSED BULLISH PLAYS

3M Co. - MMM - close: 87.56 change: -0.45

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

Comments:
05/08 update: MMM has continued to sink. Shares did find support at their 100-dma but the stock has closed under support near $88.00 and its 50-dma. It is unlikely that MMM will hit our trigger to open positions at $90.25 any time soon. I am removing the stock from the newsletter.

Trigger @ 90.25

Our trade did not open.

05/08/12 removed MMM as a candidate.

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


NetEase, Inc. - NTES - close: 57.59 change: -2.49

Stop Loss: 58.95
Target(s): 64.75
Current Option Gain/Loss: May60c: -32.0% & May65c: -35.7%
Time Frame: exit prior to the May 16th earnings report
New Positions: see below

Comments:
05/08 update: We've been struck by Murphy's Law again. If something will go wrong it will. We've been waiting for days for NTES to rally off the $60.00 level. Shares finally hit our trigger to buy calls at $60.75 yesterday. Of course today the market collapses and NTES breaks support at the bottom of its bullish channel and hit our stop loss at $58.95 in the process.

(small positions) - Suggested Positions -

May $60 call (NTES1219E60) Entry $2.65 exit $1.80 (-32.0%)

- or -

May $65 call (NTES1219E65) Entry $0.70 exit $0.45 (-35.7%)

05/08/12 stopped out at $58.95
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

chart:

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


CLOSED BEARISH PLAYS

Joy Global, Inc. - JOY - close: 66.17 change: +0.16

Stop Loss: 70.25
Target(s): 65.25
Current Option Gain/Loss: +134.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08 update: Target achieved.

JOY gapped open lower at $65.32 and then spiked down to $63.15 before bouncing all the way back to close in positive territory. Our exit target was hit at $65.25.

If you're still bearish I want to warn you that today looks like a one-day bullish reversal pattern. I would expect JOY to bounce from here, at least short-term.

(small positions)- Suggested Positions -

May $70 PUT (JOY1219Q70) Entry $2.50 exit $5.85 (+134.0%)

05/08/12 target hit
05/05/12 new stop loss @ 70.25.
05/02/12 triggered at $69.75

chart:

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: 87.23 change: -0.75

Stop Loss: 91.55
Target(s): 86.00
Current Option Gain/Loss: +69.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08 update: Target achieved.

The European markets continue to sink. SI spiked down to $85.97 intraday. Our exit target was $86.00.

(small positions) - Suggested Positions -

May $90 PUT (SI1219Q90) Entry $2.06 exit $3.50*(+69.9%)

*exit price is an estimate. option did not trade at time of our exit
05/08/12 target hit
05/04/12 SI gapped open lower at $89.63, under our entry trigger of $89.75.

chart:

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: 85.00 change: -1.06

Stop Loss: 92.15
Target(s): 82.50
Current Option Gain/Loss: +148.1%
Time Frame: up to May option expiration
New Positions: see below

Comments:
05/08 update: Target hit.

It was a volatile day for ULTA. Shares gapped open lower at $85.28 and then plunged to $78.87 intraday, before bouncing back to the $85 area. Our exit target was hit at $82.50. FYI: The option hit an intraday high of $6.60.

- Suggested Positions -

May $85 PUT (ULTA1219Q85) Entry $1.35 exit $3.35 (+148.1%)

05/08/12 target hit at $82.50
05/02/12 Readers may want to exit early right now. ULTA is not cooperating. I am adjusting our stop loss to $92.15.

chart:

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