Editor's Note:

Thursday's session produced a widespread market decline that saw the transportation average underperforming with a -1.6% decline.

Readers will want to double check their stop loss placement. It might be time to adjust your risk. We did see VSI hit our entry trigger today.


Current Portfolio:


CALL Play Updates

Axiall Corp. - AXLL - close: 62.48 change: -2.17

Stop Loss: 59.90
Target(s): 69.00
Current Option Gain/Loss: Apr62.5c: -26.5% & May65c: -18.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/21/13: The widespread market declines sparked some profit taking in AXLL. Shares dipped to $61.53 intraday. The stock settled with a -3.3% decline. At the moment we can still look for short-term support near the 10-dma or the $60.00 mark.

- Suggested Positions -

Long Apr $62.50 call (AXLL1320D62.5) entry $3.20

- or -

Long May $65 call (AXLL1318E65) entry $2.75*

03/20/13 trade opened at trigger $63.15.
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on March 20 at $63.15
Average Daily Volume = 1.3 million
Listed on March 19, 2012


Crane Co. - CR - close: 56.35 change: -0.42

Stop Loss: 53.90
Target(s): 58.50
Current Option Gain/Loss: +14.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/21/13: After several days of gains CR finally saw a little bit of profit taking with a -0.7% pullback. If the market weakness continues we could see CR dip toward its 20-dma or the $54.50 level.

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

03/20/13 new stop loss @ 53.90
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


CommVault Sys. - CVLT - close: 81.91 change: -0.83

Stop Loss: 79.45
Target(s): 89.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/21/13: CVLT opened weak but found support near its 10-dma intraday. The stock was starting to bounce by the close. I am suggesting a trigger to buy calls at $83.25. If triggered our target is $89.00.

Trigger @ 83.25

- Suggested Positions -

buy the Apr $85 call (CVLT1320D85)

Entry on March -- at $---.--
Average Daily Volume = 627 thousand
Listed on March 20, 2012


Green Mtn Coffee Roasters - GMCR - close: 55.59 change: -0.26

Stop Loss: 52.95
Target(s): 59.75
Current Option Gain/Loss: - 1.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21/13: GMCR held up relatively well the first half of the session. There was a spike lower this afternoon but the stock pared its losses. Overall GMCR is little changed for the day. More conservative traders may want to adjust their stop loss higher.

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: 91.47 change: -1.80

Stop Loss: 89.90
Target(s): 98.50
Current Option Gain/Loss: -53.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/21/13: Ouch! Our April $95 calls were hammered with today's -1.9% decline in shares of GWR. The stock looks poised to test support near $90.00 soon. Nimble traders could use a bounce off the $90.00 level as a new bullish entry point.

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: 106.59 change: -2.39

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: -30.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/21/13: KSU is another railroad stocks being hit hard with profit taking today. Shares gave back -2.1% and broke down below short-term technical support at the simple 10-dma. The stock looks like it's poised to tag short-term support at the $106.00 level soon. More conservative traders might want to adjust their stop closer to the $106 area.

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


McCormick & Co. - MKC - close: 71.26 change: -0.45

Stop Loss: 69.90
Target(s): 74.85
Current Option Gain/Loss: -11.1%
Time Frame: Prepare to exit PRIOR to earnings on April 2nd
New Positions: see below

Comments:
03/21/13: MKC tagged a new high around the 1:00 o'clock hour before suddenly reversing lower. MKC is likely to retest the $71.00 level and the 10-dma as short-term support. Readers may want to wait for a bounce before considering new bullish positions.

Earlier Comments:
I would keep our position size small to limit our risk. Don't forget that we plan to exit prior to the earnings report on April 2nd.

*Small Positions* - Suggested Positions -

Long Jun $70 call (MKC1322F70) current ask $2.70

03/20/13 triggered on gap open higher at $71.40

Entry on March 20 at $71.40
Average Daily Volume = 750 thousand
Listed on March 19, 2012


Toyota Motors - TM - close: 103.53 change: -0.75

Stop Loss: 102.35
Target(s): 108.00
Current Option Gain/Loss: -42.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/21/13: Yesterday TM looked ready to breakout of its sideways consolidation but today's widespread market declines may have derailed that rally attempt. I am not suggesting new positions at this time.

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

Joy Global, Inc. - JOY - close: 58.29 change: -0.43

Stop Loss: 60.25
Target(s): 52.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/21/13: JOY gapped open lower and closed below its simple 200-dma. Yet shares remain above Wednesday's low (57.71). I am suggesting a trigger to buy puts at $57.50. Our target is $52.50 but you could aim for the $50 level.

Trigger @ 57.50

- Suggested Positions -

buy the Apr 60 PUT (JOY1320P60) current ask $3.05

Entry on March -- at $---.--
Average Daily Volume = 2.7 million
Listed on March 20, 2012


SINA Corp. - SINA - close: 49.11 change: -0.49

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: -39.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21/13: There was no follow through on yesterday's bullish rebound in SINA. Yet shares remain above the 10-dma, which was short-term resistance and could not be new short-term support. I am not suggesting new positions at this time.

- 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: 49.77 change: -1.13

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: - 5.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/21/13: Our bearish VSI trade is finally open. The market's widespread weakness was enough to push VSI out of its recent consolidation and below support near the $50.00 mark. Our trigger to buy puts was hit at $49.75 and I would still consider new positions now at current levels.

- Suggested Positions -

Long Apr $50 PUT (VSI1320P50) entry $2.00

Entry on March 21 at $49.75
Average Daily Volume = 736 thousand
Listed on March 11, 2012