Editor's Note:

The market's major indices are bouncing off their simple 100-dma. Is it just an oversold bounce? Will the correction lower continue? Right now high-profile earnings reports from CSCO and PCLN are disappointing and both stocks are down big after hours. Odds are we'll see the market sink again at the open.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 69.62 change: -1.08

Stop Loss: 68.95
Target(s): 74.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/09 update: AMGN erased yesterday's gains while trading inside of yesterday's range. The stock remains in a bull flag pattern. I am suggesting small bullish positions if AMGN can trade at $71.25. We'll use a stop at $68.95. Our target is $74.90. More aggressive traders could aim higher.

Trigger @ $71.25 (small positions)

- Suggested Positions -

buy the Jun $70 call (AMGN1216F70)

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on May 08, 2012


Airgas Inc. - ARG - close: 91.32 change: -0.60

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:
05/09 update: ARG continues to churn sideways in side the $90-92 zone. 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: 49.91 change: -0.26

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: -31.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: The stock market's weakness this morning pushed UNFI lower but shares rebounded off technical support near its 20-dma and the $48.75 area. I am not suggesting new positions at this time.

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: 123.70 change: -3.61

Stop Loss: 133.05
Target(s): 115.00
Current Option Gain/Loss: May125P: +66.6% & Jun120P: +45.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: BIDU gapped down at the open. The stock churned sideways just above yesterday's lows. BIDU underperformed the market with a -2.8% decline. More conservative traders might want to lower their stop loss. 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: 53.07 change: -0.32

Stop Loss: 55.25
Target(s): 51.50
Current Option Gain/Loss: May $55p: +64.0% & Jun$55p: +37.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: COL saw a strong bounce off its morning lows but the rebound failed near $54 and shares were falling into the closing bell. 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: 66.28 change: -0.26

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: May$70p: +19.2% & Jun65P: +22.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09 update: I previously cautioned readers that the $65 area could offer some support. Shares of FISV spiked down to $65.44 this morning before bouncing back. The stock is short-term oversold and if the market bounces I would expect FISV to bounce as well. I'm not suggesting new positions at this time.

- 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: 46.99 change: -0.62

Stop Loss: 50.55
Target(s): 45.25
Current Option Gain/Loss: May50p: +32.0% & Jun45p: +33.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09 update: HP continues to bounce around the $46-48 zone but shares did close down -1.3% on the session. I am not suggesting new positions at this time. Look for the $50.00 level to act as overhead resistance.

- 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: 46.65 change: -0.11

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: May50p: + 6.6% or May$45p: -46.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09 update: Hmm... the $46.00 level is holding up as support - at least for now. JOSB still has a bearish trend of lower highs. More conservative traders might want to lower their stop closer to $48.50 or the $48.00 level instead. 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