Editor's Note:

The U.S. markets did not see much follow through on yesterday's intraday bounce. Financials continued to outperform but that might change tomorrow. After hours JPM was down sharply (-7%) after revealing significant losses in its credit portfolio.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 70.09 change: +0.47

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:
05/10 update: Shares of AMGN were very quiet today with a narrow drift sideways. 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: 92.49 change: +1.17

Stop Loss: 89.65
Target(s): 97.50
Current Option Gain/Loss: May92.5c: -17.3% & Jun95c: -24.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: ARG displayed relative strength and rallied to new record highs. Our trigger to buy calls was hit at $92.50. 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.

(small positions) - Suggested Positions -

Long May $92.50 call (ARG1219E92.5) Entry $1.15

- or -

Long Jun $95.00 call (ARG1216F95) Entry $1.45

05/10/12 triggered @ 92.50

Entry on May 10 at $92.50
Earnings Date 05/03/12
Average Daily Volume = 476 thousand
Listed on May 05, 2012


United Natural Foods - UNFI - close: 50.60 change: +0.69

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: -57.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: UNFI displayed relative strength with a +1.3% gain and a rally toward its recent highs. A breakout past $51.00 would be bullish.

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: 123.66 change: -0.04

Stop Loss: 133.05
Target(s): 115.00
Current Option Gain/Loss: May125P: +52.3% & Jun120P: +40.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: BIDU tagged a new relative low intraday and didn't really participate in the market's intraday rebound. There is no change from my prior comments. 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: 52.26 change: -0.51

Stop Loss: 55.25
Target(s): 51.50
Current Option Gain/Loss: May $55p: +108.0% & Jun$55p: +62.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: COL underperformed with a -0.9% decline and a new five-month low. Our exit target is $51.50 but readers may want to take profits now. 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: 66.47 change: +0.19

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: May$70p: + 5.9% & Jun65P: + 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/10 update: FISV saw a little bit of an oversold bounce, which isn't surprising given the rebound off support yesterday. The stock should find new resistance in the $68 area. 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


General Dynamic - GD - close: 66.54 change: +0.14

Stop Loss: 68.25
Target(s): 61.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/10 update: GD slid sideways in a narrow range under the $67 level today. We are waiting for further weakness. I am suggesting we buy puts if GD trades at $65.75 or lower. More conservative traders may want to wait for a drop under $65.00 instead. Our target is $61.50. FYI: The Point & Figure chart for GD is bearish with a $60 target.

Trigger @ 65.75

- Suggested Positions -

buy the Jun $65 PUT (GD1216R65)

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 09, 2012


Helmerich & Payne Inc. - HP - close: 46.38 change: -0.61

Stop Loss: 50.55
Target(s): 45.25
Current Option Gain/Loss: May50p: +48.0% & Jun45p: +50.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: HP tried to bounce and briefly traded above short-term resistance at $48.00. The rally eventually faded. Shares underperformed with a -1.2% decline. 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

05/10/12 there has been no follow through on the bounce.
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


Humana Inc. - HUM - close: 79.40 change: +0.29

Stop Loss: 82.25
Target(s): 71.50
Current Option Gain/Loss: Jun80p: - 1.6% Jun75P: - 4.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/10 update: HUM opened higher but struggled with technical resistance with its 300-dma near $80.50. I would still consider new put positions now given the intraday reversal lower. FYI: The Point & Figure chart for HUM is bearish with a $69 target.

- Suggested Positions -

Long Jun $80 put (HUM1216R80) Entry $3.00

- or -

Long Jun $75 put (HUM1216R75) Entry $1.15

Entry on May 10 at $79.56
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on May 09, 2012


Jos. A Bank Clothiers - JOSB - close: 47.01 change: +0.36

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: May50p: - 3.3% or May$45p: -69.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/10 update: JOSB tried to bounce again this morning but is still having trouble with its trend of lower highs. The stock did close up +0.7%. 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