Editor's Note:

The S&P 500 index is down three days in a row. Traders keep buying the dips intraday but stocks are still posting declines.

CERN, CLR, ICE were stopped out. HOG has been removed. GMCR has been triggered.


Current Portfolio:


CALL Play Updates

Crane Co. - CR - close: 56.58 change: +0.26

Stop Loss: 53.40
Target(s): 58.50
Current Option Gain/Loss: +18.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/19/13: Another day, another gain for CR. The stock rebounded off its intraday low to post another high. 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


Green Mtn Coffee Roasters - GMCR - close: 56.19 change: +1.13

Stop Loss: 52.95
Target(s): 59.75
Current Option Gain/Loss: +23.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19/13: Our brand new trade on GMCR is off to a strong start. This stock ignored the market's lackluster session. Shares gapped open higher at $55.55 and closed with a +2.0% gain. Our trigger to buy calls was at $55.25 so the gap open immediately opened our trade.

Earlier Comments:
If this rally continues GMCR could see a short squeeze. The most recent data listed short interest at 37% of the 129 million-share float.

- Suggested Positions -

Long Apr 57.50 call (GMCR1320D57.5) entry $1.64

Entry on March 19 at $55.55
Average Daily Volume = 3.4 million
Listed on March 18, 2012


Genesee & Wyoming - GWR - close: 92.18 change: -1.66

Stop Loss: 89.90
Target(s): 98.50
Current Option Gain/Loss: -35.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/19/13: GWR displayed relative weakness today with a -1.7% decline. That's off its worst levels of the session near $91.00. I couldn't find any news to account for today's weakness in GWR. The Dow Jones railroad index was only down -0.2%. The Dow Jones transportation average was only down -0.19%.

We are raising our stop loss up to $89.90. More conservative traders may want to raise theirs closer to today's low (91.10).

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

03/19/13 new stop loss @ 89.90

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


Kansas City Southern - KSU - close: 107.91 change: -0.08

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: - 4.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/19/13: Shares of KSU held up well today. Traders bought the dip at short-term technical support on the rising 10-dma. KSU closed virtually unchanged on the session.

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: 103.15 change: +0.28

Stop Loss: 102.35
Target(s): 108.00
Current Option Gain/Loss: -46.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/19/13: TM continues to churn sideways. Shares appear to be stuck in the $102.50-104.25 zone. There is short-term technical support at the 30-dma. If TM sees any further weakness it will hit our stop loss at $102.35. Readers may want to wait for a close above $105.00 before considering new positions.

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: 47.51 change: -0.62

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: - 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19/13: SINA tagged new ten-week lows intraday before paring its losses today. Readers might want to start lowering their stop. The simple 10-dma has been strong overhead resistance lately.

- 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: 50.58 change: -0.41

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:
03/19/13: VSI flirted with a breakdown under support at the $50.00 level but shares rebounded by the closing bell. The intraday low was only $49.86.

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

Cerner Corp. - CERN - close: 90.76 change: -0.36

Stop Loss: 89.85
Target(s): 97.50
Current Option Gain/Loss: -28.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/19/13: The weakness in CERN continued on Tuesday. Shares pierced support near the $90.00 mark and hit an intraday low was $89.83 before paring its losses. Our stop loss was hit at $89.85.

- Suggested Positions -

Apr $90 call (CERN1320d90) entry $3.15 exit $2.25 (-28.5%)

03/19/13 stopped out
03/14/13 new stop loss @ 89.85
03/09/13 new stop loss @ 89.45

chart:

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


Continental Resources - CLR - close: 88.81 change: -2.01

Stop Loss: 89.90
Target(s): 96.75
Current Option Gain/Loss: -58.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19/13: The energy sector continues to tank following bearish news out of Schlumberger (SLB). Shares of CLR broke down under short-term support at the $90.00 level and hit our stop loss at $89.90 this morning.

- Suggested Positions -

Apr $95 call (CLR1320D95) entry $1.70 exit $0.70 (-58.8%)

03/19/13 stopped out at $89.90

chart:

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

Comments:
03/19/13: A research note out of UBS suggested that HOG could see a -4% to -5% drop in January-February sales. This "news" created a gap down in HOG at $53.75 and shares closed the day down -3.1% and setting near their 50-dma. It is unlikely that HOG will hit our suggested entry trigger at $55.25 any time soon so we are removing HOG as a candidate.

Trade did not open.

03/19/13 removed from the newsletter
03/18/13 adjust trigger to $55.25 and stop to $53.75

chart:

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


IntercontinentalExchange - ICE - close: 159.61 change: -0.24

Stop Loss: 157.45
Target(s): 164.50
Current Option Gain/Loss: -13.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/19/13: I had cautioned traders that this was a higher-risk trade and we wanted to keep our position size small because ICE could be a volatile stock. That volatility hit our stop loss today.

Shares actually opened higher but failed near the $161.00 level this morning. The stock spiked down to $156.12 intraday before bouncing back to almost unchanged. Our stop loss was hit at $157.45.

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

*Small Positions* - Suggested Positions -

Apr $160 call (ICE1320d160) entry $3.30 exit $2.85 (-13.6%)

03/19/13 stopped out
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

chart:

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