Editor's Note:

The S&P 500 and the Dow Industrials posted gains today but a good portion of the stock market is breaking down.

AGN and RAX were triggered today.

AXLL, CLR, GWR, and KSU were all stopped out.

We want to exit CR, CVLT and FFIV tomorrow at the opening bell.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 114.79 change: +2.21

Stop Loss: 110.75
Target(s): 117.50
Current Option Gain/Loss: +25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: AGN displayed significant strength today. Shares gapped open higher at $113.25 and surged to new highs with a +1.9% gain. Since our trigger to buy calls was $112.75, the opening gap at $113.25 triggered our trade.

- Suggested Positions -

Long May $115 call (AGN1318E115) entry $2.28

04/02/13 triggered on gap open higher

Entry on April 02 at $113.24
Average Daily Volume = 1.2 million
Listed on April 01, 2013


Crane Co. - CR - close: 55.43 change: -0.43

Stop Loss: 54.40
Target(s): 58.50
Current Option Gain/Loss: -30.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
04/02/13: CR is not working for us. Shares underperformed the major indices with a -1.1% decline today. The stock is flirting with a breakdown under its 30-dma and almost hit our stop loss at $54.40.

We are suggesting an immediate exit at the opening bell tomorrow morning. The current bid/ask is $1.75/1.95.

Earlier Comments:
We do want to keep our position size small to limit our risk.

- Suggested Positions - *Small Positions*

Long JUN $55 call (CR1322F55) entry $2.50

04/02/13 prepare to exit at the open tomorrow morning
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.

Entry on March 11 at $55.25
Average Daily Volume = 314 thousand
Listed on March 09, 2013


CommVault Sys. - CVLT - close: 80.78 change: +0.01

Stop Loss: 79.90
Target(s): 89.00
Current Option Gain/Loss: -60.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: CVLT tried to rally today. Yet traders sold the rally attempt multiple times near short-term technical resistance at its simple 10-dma. The stock closed almost unchanged on the session but the option lost another nickel.

CVLT still has support near $80.00 but odds are growing the stock will breakdown. I am suggesting an immediate exit at the opening bell tomorrow morning. The current bid/ask is $0.90/1.10.

- Suggested Positions -

Long Apr $85 call (CVLT1320D85) entry $2.25

04/02/13 prepare to exit at the open tomorrow morning
03/30/13 new stop loss @ 79.90

Entry on March 27 at $83.25
Average Daily Volume = 627 thousand
Listed on March 20, 2013


Green Mtn Coffee Roasters - GMCR - close: 57.61 change: +0.14

Stop Loss: 54.85
Target(s): 59.75
Current Option Gain/Loss: +30.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: Shares of GMCR managed to post a +0.2% gain and yet our option declined in spite of the stock's gain. I am raising our stop loss up to $54.85.

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

04/02/13 new stop loss @ 54.85
03/30/13 new stop loss @ 54.45
03/23/13 new stop loss @ 53.45

Entry on March 19 at $55.55
Average Daily Volume = 3.4 million
Listed on March 18, 2013


Ingredion Inc. - INGR - close: 73.20 change: +0.95

Stop Loss: 69.75
Target(s): 74.50
Current Option Gain/Loss: +88.2%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
04/02/13: INGR continues to rally with the stock hitting another all-time high. Our option has almost doubled in value. Readers may want to think about taking some money off the table.

I am not suggesting new positions. More conservative traders may want to raise their stop loss.

Please note that I am adjusting our exit target to $74.50.

FYI: The Point & Figure chart for INGR is bullish with an $83 target.

- Suggested Positions -

Long Apr $70 call (INGR1320D70) entry $1.70

04/02/13 our option is up +88%, readers may want to take profits now
Adjusting the exit target to $74.50
03/30/13 new stop loss @ $69.75

Entry on March 25 at $70.65
Average Daily Volume = 585 thousand
Listed on March 23, 2013


Noble Energy - NBL - close: 115.88 change: -0.12

Stop Loss: 113.45
Target(s): 119.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02/13: Tuesday was a relatively quiet session for NBL. It's interesting to note that traders bought the dip twice today near $115.35. I am not suggesting new positions at this time. Our option is back to breakeven.

- Suggested Positions -

Long May $120 call (NBL1318E120) entry $1.55

04/01/13 new stop loss @ 113.45
03/26/13 triggered @ 115.35
03/25/13 adjust entry trigger to $115.35, adjust stop to $112.65

Entry on March 26 at $115.35
Average Daily Volume = 1.0 million
Listed on March 23, 2013


Snap-on Inc. - SNA - close: 81.76 change: -0.11

Stop Loss: 80.90
Target(s): 88.50
Current Option Gain/Loss: - 34.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: SNA also produced a relatively quiet performance. Traders bought the dip near its 20-dma again. Readers may want to wait for a new rally past $83.00 before considering new bullish positions.

- Suggested Positions -

Long May $85 call (SNA1318E85) entry $1.30

Entry on April 01 at $ 83.00
Average Daily Volume = 288 thousand
Listed on March 30, 2013


PUT Play Updates

CF Industries - CF - close: 186.12 change: -3.90

Stop Loss: 194.05
Target(s): 176.00
Current Option Gain/Loss: +17.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: Early this morning CF tried to rally but the spike higher reversed just above $191. Shares plunged toward new lows and broke support near $190 again. The stock closed with a -2.0% decline. This appears to have broken CF's long-term trend of higher lows.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because CF can be a volatile stock. If triggered our target is $176.00. More conservative traders may want to take profits early in the $181-180 zone instead. FYI: The Point & Figure chart for CF is bearish with a $144 target.

*Small Positions* - Suggested Positions -

Long May $180 PUT (CF1318Q180) entry $3.90

Entry on April 01 at $188.75
Average Daily Volume = 1.1 million
Listed on March 30, 2013


F5 Networks - FFIV - close: 89.83 change: +1.92

Stop Loss: 90.55
Target(s): 85.25
Current Option Gain/Loss: -52.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: Warning! FFIV is not working for us. Shares were upgraded to an "outperform" this morning and the stock gapped open higher. Shares broke through their simple 10-dma and settled just below round-number resistance at the $90.00 mark.

FFIV looks poised to breakout past the $90 level so I am suggesting we abandon ship and exit positions early tomorrow morning at the opening bell.

- Suggested Positions -

Long Apr $85 PUT (FFIV1320P85) entry $1.40

04/02/13 prepare to exit tomorrow at the opening bell
03/23/13 new stop loss @ 90.55

Entry on March 22 at $89.11
Average Daily Volume = 1.5 million
Listed on March 21, 2013


Joy Global, Inc. - JOY - close: 57.28 change: -0.47

Stop Loss: 60.25
Target(s): 52.50
Current Option Gain/Loss: + 6.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: JOY struggled with the $58.00 level as resistance most of the session. The stock ended Tuesday with a -0.8% decline and a new multi-month closing low.

- Suggested Positions -

Long Apr 60 PUT (JOY1320P60) entry $3.05

Entry on March 25 at $57.50
Average Daily Volume = 2.7 million
Listed on March 20, 2013


Rackspace Hosting - RAX - close: 48.66 change: -0.81

Stop Loss: 50.25
Target(s): 45.50
Current Option Gain/Loss: -2.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: Our RAX trade is finally open. Our trigger to buy puts was $49.00. Yet RAX was downgraded this morning and the stock reacted by gapping open lower at $48.86, triggering our play. The midday bounce has already rolled over. I would consider new bearish positions at current levels.

Earlier Comments:
If triggered our short-term target is $45.50. The $45.00 level does look like it could be significant support.

NOTE: I would keep our position size small. While there is growing competition in the cloud computing field there are also expectations that the industry could see consolidation and smaller companies, like RAX, could be takeover targets.

*Small Positions* - Suggested Positions -

Long Apr $50 PUT (RAX1320P50) entry $2.35

04/02/13 triggered on gap open lower at $48.86

Entry on April 02 at $48.86
Average Daily Volume = 2.4 million
Listed on March 27, 2013


Vitamin Shoppe, Inc. - VSI - close: 48.45 change: +0.76

Stop Loss: 50.15
Target(s): 45.50
Current Option Gain/Loss: +10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: VSI managed a bit of an oversold bounce with today's +1.5% gain. Yet today's move remained inside of yesterday's trading range. It doesn't look like a reversal yet.

- Suggested Positions -

Long Apr $50 PUT (VSI1320P50) entry $2.00

04/01/13 new stop loss @ 50.15

Entry on March 21 at $49.75
Average Daily Volume = 736 thousand
Listed on March 11, 2013


CLOSED BULLISH PLAYS

Axiall Corp. - AXLL - close: 58.68 change: -1.42

Stop Loss: 59.90
Target(s): 69.00
Current Option Gain/Loss: Apr62.5c: -75.0% & May65c: -63.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02/13: The sell-off in AXLL continued on Tuesday and shares broke down under support near the $60.00 mark. Our stop loss was hit at $59.90.

- Suggested Positions -

Apr $62.50 call (AXLL1320D62.5) entry $3.20 exit $0.80 (-75.0%)

- or -

May $65 call (AXLL1318E65) entry $2.75* exit $1.00 (-63.6%)

04/02/13 stopped out
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, 2013


Continental Resources – CLR – close: 83.83 change: -3.20

Stop Loss: 84.65
Target(s): 93.50
Current Option Gain/Loss: -70.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/02/13: CLR collapsed with a -3.6% plunge and a breakdown below its simple 50-dma and the $85.00 level. It appears that investors were unhappy to see that CLR is planning to sell $2.5 billion in new 10-year debt. There were two company press releases out today. One was for $1.0 billion in 10-year notes. The second one was for $1.5 billion in 10-year notes.

The stock's breakdown hit our stop loss at $84.65.

- Suggested Positions -

Long Apr $90 call (CLR1320D90) entry $1.50 exit $0.45 (-70.0%)

04/02/13 stopped out

chart:

Entry on March 26 at $87.33
Average Daily Volume = 1.2 million
Listed on March 25, 2013


Genesee & Wyoming - GWR - close: 90.23 change: -1.21

Stop Loss: 90.70
Target(s): 98.50
Current Option Gain/Loss: -82.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02/13: The transportation sector underperformed today with the $TRAN index down -1.2%. GWR managed to outpace the sector decline with a -1.3% drop. Shares pierced the $90.00 level before settling just above potential round-number support. There is a chance that GWR might bounce from $90.00 but our stop loss has already been hit at $90.70.

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

*Small Positions* - Suggested Positions -

Apr $95 call (GWR1320D95) Entry $1.40 exit $0.25 (-82.1%)

04/02/13 stopped out at $90.70
03/25/13 new stop loss @ 90.70
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, 2013


Kansas City Southern - KSU - close: 105.83 change: -2.74

Stop Loss: 105.75
Target(s): 114.00
Current Option Gain/Loss: -54.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/02/13: KSU is another transportation stock that underperformed the market today. Shares gave up -2.5% and broke down below short-term support near $106.00. Our stop loss was hit at $105.75.

Earlier Comments:
We want to keep our position size small to limit our risk.

- Suggested Positions -

Apr $110 call (KSU1320D110) entry $2.50 exit $1.15 (-54.0%)

04/02/13 stopped out at $105.75
03/25/13 new stop loss @ 105.75
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, 2013