Editor's Note:

The proposal to issue a "stability levy" against private citizen deposits inside Cyprus banks rattled the markets on Monday morning.

The major market indices across the globe saw selling pressure today. Many stocks in the U.S. gapped open lower. Our CSC and GTLS trades have been stopped out. I am removing BWA thanks to its relative weakness today.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 91.12 change: -1.66

Stop Loss: 89.85
Target(s): 97.50
Current Option Gain/Loss: -11.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/18/13: This morning CERN announced it was buying Labotix Automation Inc., a provider of flexible, open automation solutions for the clinical laboratory setting. According to CERN's press release this acquisition is not expected to have a "material impact" on its financial results. Yet the combination of this new acquisition and what was generally a down morning for the equity markets created a gap down day for shares of CERN. The stock opened below short-term technical support at its 10-dma and fell to a -1.7% decline to underperform the broader market. The next level of support should be the $90.00 mark. I am not suggesting new positions.

FYI: The Point & Figure chart for CERN is bullish with a long-term $141 target.

- Suggested Positions -

Long Apr $90 call (CERN1320d90) entry $3.15

03/14/13 new stop loss @ 89.85
03/09/13 new stop loss @ 89.45

Entry on March 05 at $90.25
Average Daily Volume = 916 thousand
Listed on March 02, 2012


Continental Resources - CLR - close: 90.82 change: -1.88

Stop Loss: 89.90
Target(s): 96.75
Current Option Gain/Loss: -41.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/18/13: It was a choppy session for shares of CLR. The stock underperformed the market with a -2.0% decline. Shares look poised to test round-number support at $90.00 soon. I would wait for a bounce near the $90.00 mark before launching new bullish positions.

Our target is $96.75, which is just below the old, all-time high of $97.19 from February 2012. More aggressive traders may want to aim for the $99-100 zone instead.

- Suggested Positions -

Long Apr $95 call (CLR1320D95) entry $1.70

Entry on March 15 at $92.50
Average Daily Volume = 1.1 million
Listed on March 14, 2012


Crane Co. - CR - close: 56.32 change: +0.22

Stop Loss: 53.40
Target(s): 58.50
Current Option Gain/Loss: +12.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/18/13: Positive analyst comments on CR may have helped shares outperform the market with a +0.39% gain today. I don't see any changes from my prior comments. If you are looking for a new bullish entry point then consider waiting for a dip near the $55.00 level. Readers may want to start adjusting their stop loss higher.

Earlier Comments:
We do want to keep our position size small to limit our risk. If triggered our multi-week target is $58.50. More aggressive traders could certainly aim higher but CR doesn't move super fast.

- Suggested Positions - *Small Positions*

Long JUN $55 call (CR1322F55) entry $2.50

03/11/13 triggered at $55.25, plus we corrected the typo regarding the April versus June option. We are suggesting the June $55 call.

Entry on March 11 at $55.25
Average Daily Volume = 314 thousand
Listed on March 09, 2012


Genesee & Wyoming - GWR - close: 93.84 change: +0.04

Stop Loss: 89.65
Target(s): 98.50
Current Option Gain/Loss: + 7.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/18/13: Traders bought the dip in GWR near its rising 10-dma and the stock recovered to close virtually unchanged on the session. More conservative traders may want to start adjusting their stop loss higher.

Earlier Comments:
I would keep your position size small to limit our risk.

*Small Positions* - Suggested Positions -

Long Apr $95 call (GWR1320D95) Entry $1.40

Entry on March 11 at $92.35
Average Daily Volume = 407 thousand
Listed on March 09, 2012


Harley-Davidson, Inc. - HOG - close: 54.49 change: -0.92

Stop Loss: 53.75
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/18/13: There was no follow through on Friday's bullish breakout in HOG. The market's widespread decline sparked a gap down. Shares did hold support near $54.00. We are adjusting our trigger to buy calls down from $55.65 to $55.25. I am adjusting the stop loss to $53.75. FYI: The Point & Figure chart for HOG is bullish with a $63 target.

Trigger @ 55.25

- Suggested Positions -

buy the Apr $55 call (HOG1320D55)

03/18/13 adjust trigger to $55.25 and stop to $53.75

Entry on March -- at $---.--
Average Daily Volume = 1.5 million
Listed on March 16, 2012


IntercontinentalExchange - ICE - close: 159.85 change: -1.13

Stop Loss: 157.45
Target(s): 164.50
Current Option Gain/Loss: + 3.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/18/13: ICE gapped down and opened at $158.66. Shares quickly rebounded but failed to close back above the $160.00 mark. I would be cautious here. More conservative traders may want to adjust their stop toward today's low.

Earlier Comments:
ICE can be a volatile stock so I am suggesting small positions.

*Small Positions* - Suggested Positions -

Long Apr $160 call (ICE1320d160) entry $3.30

03/16/13 new stop loss @ 157.45
03/14/13 new stop loss @ 156.45
03/06/13 new stop loss @ 154.75
03/05/13 trade opened on gap open higher at $157.08, above our trigger of $156.85

Entry on March 05 at $157.08
Average Daily Volume = 1.2 million
Listed on March 04, 2012


Kansas City Southern - KSU - close: 107.99 change: +0.01

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: - 2.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/18/13: KSU found support at its rising 10-dma again this morning. Shares rebounded to close almost unchanged on the session. I don't see any changes from my prior comments.

Earlier Comments:
We want to keep our position size small to limit our risk since the transportation sector and KSU are arguably overbought at current levels.

- Suggested Positions -

Long Apr $110 call (KSU1320D110) entry $2.50

Entry on March 14 at $107.50
Average Daily Volume = 984 thousand
Listed on March 13, 2012


Toyota Motors - TM - close: 102.87 change: -1.06

Stop Loss: 102.35
Target(s): 108.00
Current Option Gain/Loss: -44.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/18/13: Shares of TM traded lower today thanks to widespread declines both back home in Japan and here in the U.S. The NIKKEI index lost a sharp -2.7% thanks in part to a rising yen. TM held up pretty well considering the big drop at home. We are turning more defensive. More conservative traders may want to abandon ship now. I am raising our stop loss up to $102.35.

Earlier Comments:
I do want to warn you that shares of TM tend to gap open (up or down) each day as the U.S. shares adjust for trading that occurs back home in Japan.

- Suggested Positions -

Long Apr $105 call (TM1320d105) entry $2.25

03/18/13 new stop loss @ 102.35, more conservative traders may want to exit early now
03/16/13 new stop loss @ 101.75

Entry on March 05 at $103.25
Average Daily Volume = 686 thousand
Listed on March 02, 2012


PUT Play Updates

SINA Corp. - SINA - close: 48.13 change: -0.14

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/18/13: SINA spiked down to a new relative low this morning. Shares did see an intraday rebound but SINA rolled over under short-term technical resistance at its simple 10-dma.

- Suggested Positions -

Long APR $47.50 PUT (SINA1320P47.5) entry $2.11

Entry on March 13 at $47.75
Average Daily Volume = 2.7 million
Listed on March 12, 2012


Vitamin Shoppe, Inc. - VSI - close: 50.99 change: -1.16

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/18/13: VSI underperformed the market with a -2.2% decline. Yet we are still waiting for a breakdown below support near $50.00.

I am suggesting a trigger to buy puts at $49.75. If triggered our target is $45.50.

Trigger @ 49.75

- Suggested Positions -

buy the Apr $50 PUT (VSI1320P50)

Entry on March -- at $---.--
Average Daily Volume = 736 thousand
Listed on March 11, 2012


CLOSED BULLISH PLAYS

BorgWarner - BWA - close: 78.58 change: -1.18

Stop Loss: 78.45
Target(s): 84.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/18/13: I couldn't find any news to explain the relative weakness in BWA this morning. Nearly all stocks were down at the open but BWA gapped down at $78.53 and spiked down to $77.02 before bouncing back. It is unlikely that BWA will hit our suggested entry point at $80.25 any time soon. We are removing BWA as a candidate. We can check it out again if shares return toward resistance near $80.00.

Trade did not open.

03/18/13 BWA removed from the newsletter after showing relative weakness

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 962 thousand
Listed on March 16, 2012


Computer Sciences Corp. - CSC - close: 48.32 change: -0.26

Stop Loss: 48.40
Target(s): 54.50
Current Option Gain/Loss: -70.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/18/13: CSC was already looking weak. A market-wide decline this morning certainly didn't help. Our stop loss was at $48.40. Yet shares gapped open lower at $48.16, immediately closing our trade.

- Suggested Positions -

Apr $50 call (CSC1320d50) Entry $1.50 exit $0.45 (-70.0%)

03/18/13 stopped out on gap down at $48.16
03/16/13 CSC is underperforming and looks poised to hit our stop loss. Traders may want to exit early now.

chart:

Entry on March 11 at $50.25
Average Daily Volume = 1.6 million
Listed on March 07, 2012


Chart Industries - GTLS - close: 80.74 change: -1.26

Stop Loss: 79.75
Target(s): 87.50
Current Option Gain/Loss: -48.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/18/13: The widespread declines this morning sparked a gap down in shares of GTLS. The stock opened at $80.53 and pierced the $80.00 mark. Shares hit $79.54 intraday. Our stop loss was hit at $79.75.

- Suggested Positions -

Apr 85 call (GTLS1320D85) entry $2.45 exit $1.25* (-48.9%)

*option exit price is an estimate since the option did not trade at the time our play was closed.
03/18/13 stopped out at $79.75

chart:

Entry on March 13 at $82.55
Average Daily Volume = 510 thousand
Listed on March 12, 2012