Editor's Note:

The stock market has been consolidating sideways all week. Has upward momentum died? Or is the market merely catching its breath for the next move higher? There is a chance that stocks could see another move higher fueled by end of quarter window dressing.

Our SINA trade was stopped out on Friday.


Current Portfolio:


CALL Play Updates

Axiall Corp. - AXLL - close: 61.99 change: -0.49

Stop Loss: 59.90
Target(s): 69.00
Current Option Gain/Loss: Apr62.5c: -35.9% & May65c: -25.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/23/13: AXLL spent a good chunk of Friday's session churning sideways inside the $61.50-62.50 zone. Traders bought the dip near its rising 10-dma. If the market weakness continues we might see AXLL testing support near $60.00 soon. I am not suggesting new positions at this time.

- 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.

chart:

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


Crane Co. - CR - close: 56.36 change: +0.01

Stop Loss: 54.40
Target(s): 58.50
Current Option Gain/Loss: +12.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/23/13: Shares of CR continued to find support near $56.00 and its 10-dma on Friday. The stock closed almost unchanged on the session. We are raising our stop loss to $54.40. More conservative traders may want to raise theirs even tighter.

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

03/23/13 new stop loss @ 54.40
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.

chart:

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


CommVault Sys. - CVLT - close: 81.92 change: +0.01

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:
03/23/13: CVLT is still churning sideways on either side of the $82.00 level. The simple 10-dma has been recent support and it's rushing up to meet the stock near $82 soon. I would expect CVLT to breakout of this sideways move pretty soon. We are 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)

chart:

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


Green Mtn Coffee Roasters - GMCR - close: 55.43 change: -0.16

Stop Loss: 53.45
Target(s): 59.75
Current Option Gain/Loss: -11.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/23/13: GMCR has spent the last three days consolidating sideways. As long as the market cooperates I would expect GMCR to test support near $55.00 and its simple 10-dma and then bounce. Readers could use a dip near $55.00 as a new bullish entry point. I am raising our stop loss to $53.45.

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

03/23/13 new stop loss @ 53.45

chart:

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


Genesee & Wyoming - GWR - close: 92.84 change: +1.37

Stop Loss: 89.90
Target(s): 98.50
Current Option Gain/Loss: -28.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/23/13: Railroad stocks hit some profit taking this past week and GWR ended a three-week rally with a minor loss for the week. Shares did bounce on Friday with a +1.49% gain. Currently we have our stop loss at $89.90 because the $90.00 level should be support. Yet a drop from $93 to $90 would definitely hurt our April calls. More conservative traders may want to use a stop loss closer to the $91.00 level, which acted as support this past week.

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

chart:

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


Kansas City Southern - KSU - close: 107.56 change: +0.97

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/23/13: The rally in KSU finally stalled. Shares posted a loss for the week, snapping a nine-week winning streak. KSU is also flirting with a breakdown below its simple 10-dma. We have our stop loss at $104.75 with the expectation that the $105.00 level and the simple 20-dma will be support. Yet this past week saw KSU find short-term support near $106.00. More conservative traders may want to raise their stop closer to the $106.00 mark. I am not suggesting new positions at this time.

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

03/23/13 Our stop is at $104.75 but readers may want to use a stop around $105.75 instead.

chart:

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


McCormick & Co. - MKC - close: 72.19 change: +0.93

Stop Loss: 70.85
Target(s): 74.85
Current Option Gain/Loss: + 5.5%
Time Frame: Prepare to exit PRIOR to earnings on April 2nd
New Positions: see below

Comments:
03/23/13: MKC continues to outperform. The stock shot higher on Friday morning and ended the day and week at new all-time highs. The simple 10-dma has risen to $70.94. I am raising our stop loss to $70.85.

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

03/23/13 new stop loss @ 70.85
03/20/13 triggered on gap open higher at $71.40

chart:

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: -40.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/23/13: TM is still consolidating sideways. The stock is holding above technical support at the rising 30-dma but it seems to have fallen out of its rising bullish channel (see chart). It is worth noting that TM is holding up pretty well considering a two-week bounce in the yen. Granted the yen was very oversold and due for a bounce.

Overall TM's trend is still higher but we are cautious here. 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

chart:

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


PUT Play Updates

F5 Networks - FFIV - close: 87.01 change: -2.02

Stop Loss: 90.55
Target(s): 85.25
Current Option Gain/Loss: +42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/23/13: Our new play on FFIV is off to a good start. Shares opened at $89.11 and plunged to a new four-month low with a -2.2% decline. Our target is $85.25 but more aggressive traders may want to aim for the $82.00-81.50 zone instead. We are adjusting the stop loss down to $90.55.

- Suggested Positions -

Long Apr $85 PUT (FFIV1320P85) entry $1.40

03/23/13 new stop loss @ 90.55

chart:

Entry on March 22 at $89.11
Average Daily Volume = 1.5 million
Listed on March 21, 2012


Joy Global, Inc. - JOY - close: 58.41 change: +0.12

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:
03/23/13: JOY still looks vulnerable. The stock is hovering between its 200-dma and support near $58.00. We are waiting on a breakdown to new relative lows. 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 $2.92

chart:

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


Vitamin Shoppe, Inc. - VSI - close: 50.30 change: +0.53

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/23/13: VSI seems to be a reluctant put candidate for us. Thursday's breakdown looked bearish and shares hit our entry trigger. There was a spike lower on Friday morning but VSI quickly reversed. The close back above support at the $50.00 mark doesn't really inspire any confidence if you're a bear. Yet VSI remains below short-term technical resistance at its 10-dma for now. Currently our stop loss is $51.55. You might want to consider adjusting your stop closer to the $51.00 level instead. I am not suggesting new bearish positions with VSI above the $50.00 mark.

- Suggested Positions -

Long Apr $50 PUT (VSI1320P50) entry $2.00

chart:

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


CLOSED BEARISH PLAYS

SINA Corp. - SINA - close: 50.04 change: +0.93

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: -57.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/23/13: Our SINA trade has been stopped out. There was news out late Thursday night that SINA plans to launch a new online payment service. Traders reacted by buying the stock (covering shorts?) and SINA spiked above resistance at the $50.00 level. Our stop loss was hit at $50.25.

- Suggested Positions -

APR $47.50 PUT (SINA1320P47.5) entry $2.11 exit $0.90 (-57.3%)

03/22/13 stopped out at $50.25

chart:

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