Editor's Note:

The U.S. market continues to weaken. Small caps and transports are really starting to sour with profit taking.

We closed CR, CVLT, and FFIV at the opening bell this morning.

GMCR and SNA were stopped out.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 113.85 change: -0.94

Stop Loss: 110.75
Target(s): 117.50
Current Option Gain/Loss: + 7.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: AGN gave back -0.8% but that was better than the S&P 500's -1.0% decline. It looked like bulls were trying to buy the dip this afternoon but the pullback may not be over yet. Look for support near $112 or its 10-dma.

- 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


Cabela's Inc. - CAB - close: 59.83 change: -1.62

Stop Loss: 59.65
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/03/13: CAB sold off sharply today as the White House ramps up their campaigning for tighter gun control laws. CAB lost -2.6% and is testing its low from Monday. I don't see any changes from my prior comments.

I am suggesting a trigger to buy calls at $62.35. If triggered our target is $67.50.

Trigger @ 62.35

- Suggested Positions -

buy the May $65 call (CAB1318E65)

Entry on April -- at $---.--
Average Daily Volume = 688 thousand
Listed on April 02, 2013


Ingredion Inc. - INGR - close: 72.89 change: -0.31

Stop Loss: 71.35
Target(s): 74.50
Current Option Gain/Loss: +76.4%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
04/03/13: INGR tried its best to ignore the stock market's broad-based sell-off today. Shares of INGR oscillated on either side of the $73.00 level all session long. Considering the market's new weakness readers may want to consider taking profits in our INGR trade early to lock in gains.

Please note our new stop loss at $71.35. That's just below the simple 10-dma. If you're willing to endure the volatility then I would keep the stop below $70.00 instead.

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

- Suggested Positions -

Long Apr $70 call (INGR1320D70) entry $1.70

04/03/13 new stop loss @ 71.35
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: 115.24 change: -0.64

Stop Loss: 113.85
Target(s): 119.75
Current Option Gain/Loss: -12.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/03/13: Shares of NBL garnered some bullish analyst comments this morning. That may have helped the stock pare its losses. NBL only lost -0.5% versus -1.0% in the S&P 500 and -1.8% in the XLE. Technicians will note that today's session has created a bearish engulfing candlestick reversal pattern. I am raising our stop loss up to $113.85 since the $114.00 level appears to be support. More aggressive traders will want to consider keeping their stop below the simple 50-dma instead.

- Suggested Positions -

Long May $120 call (NBL1318E120) entry $1.55

04/03/13 new stop loss @ 113.85
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


PUT Play Updates

CF Industries - CF - close: 187.42 change: +1.30

Stop Loss: 194.05
Target(s): 176.00
Current Option Gain/Loss: + 5.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: Hmm... CF was trading below support near $185.00 then late in the day the stock reversed and actually closed in positive territory. I can't find any news to explain the bounce.

If this rebound in CF continues we can look for resistance near $190.00 and its 10-dma. I am not suggesting new positions at this time.

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


CVR Energy, Inc. - CVI - close: 48.69 change: -0.46

Stop Loss: 51.65
Target(s): 45.25
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: Our new put play in CVI posted a -0.9% loss but shares are up off their lows of the day, which was -5.7%. The cause behind today's big intraday rebound is currently a mystery and that makes me cautious. Watch for resistance near $50.00 and its 100-dma.

NOTE: the big rebound might play a part in the sudden gap between our option's bid/ask spread (currently: $1.20/2.00).

Earlier Comments:
Keep position size small to limit risk.

- Suggested Positions -

Long May $45 PUT (CVI1318Q45) Entry $1.40

Entry on April 03 at $49.55
Average Daily Volume = 538 thousand
Listed on April 02, 2013


Joy Global, Inc. - JOY - close: 56.01 change: -1.27

Stop Loss: 58.65
Target(s): 52.50
Current Option Gain/Loss: +40.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: JOY spiked lower this morning and spent the rest of the day trading near $56.00. I am lowering our stop loss down to $58.65.

- Suggested Positions -

Long Apr 60 PUT (JOY1320P60) entry $3.05

04/03/13 new stop loss @ 58.65

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


Rackspace Hosting - RAX - close: 47.93 change: -0.73

Stop Loss: 50.25
Target(s): 45.50
Current Option Gain/Loss: +14.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: RAX slipped another -1.5% today and set a new multi-month closing low. I would still 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: 47.59 change: -0.86

Stop Loss: 50.15
Target(s): 45.50
Current Option Gain/Loss: + 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: As markets get more volatile sometimes option spreads widen as market makers try and protect themselves. That could be the problem with our options in VSI. Shares of VSI lost -1.77% and tagged new relative lows. Meanwhile the bid/ask spread on our April $50 put has exploded to $2.15/3.50. That's not a very appealing spread if you're an option trader.

- 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

Crane Co. - CR - close: 53.74 change: -1.03

Stop Loss: 54.40
Target(s): 58.50
Current Option Gain/Loss: -28.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
04/03/13: Wednesday was another painful session for CR with the stock underperforming the market thanks to a -1.88% decline. Last night we decided it was time to close this trade. We were fortunate that CR gapped open higher this morning at $54.91.

NOTE: The option exit price listed is an estimate since the option did not trade at the opening bell this morning.

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

- Suggested Positions - *Small Positions*

JUN $55 call (CR1322F55) entry $2.50 exit $1.80*(-28.0%)

04/03/13 scheduled close at the opening bell
*option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


CommVault Sys. - CVLT - close: 76.41 change: -4.37

Stop Loss: 79.90
Target(s): 89.00
Current Option Gain/Loss: -57.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: Shares of CVLT just cratered today with a breakdown below support at $80.00 and its 50-dma thanks to a -5.4% plunge. Thankfully we decided last night we wanted to close positions at the opening bell today. CVLT was kind enough to gap open higher this morning at $81.15.

NOTE: The option exit price listed is an estimate since the option did not trade at the opening bell this morning.

- Suggested Positions -

Apr $85 call (CVLT1320D85) entry $2.25 exit $0.95* (-57.7%)

04/03/13 scheduled exit at the open
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/02/13 prepare to exit at the open tomorrow morning
03/30/13 new stop loss @ 79.90

chart:

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


Green Mtn Coffee Roasters - GMCR - close: 54.14 change: -3.47

Stop Loss: 54.85
Target(s): 59.75
Current Option Gain/Loss: -42.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: I could not find any specific news behind GMCR's relative weakness today. Someone was in a rush to sell. The stock was in freefall mode until about 12:40 p.m. today. GMCR gave back more than -6% and broke through short-term support. Our stop loss was hit at $54.85.

- Suggested Positions -

Apr 57.50 call (GMCR1320D57.5) entry $1.64 exit $0.95 (-42.0%)

04/03/13 stopped out at $54.85
04/02/13 new stop loss @ 54.85
03/30/13 new stop loss @ 54.45
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, 2013


Snap-on Inc. - SNA - close: 81.06 change: -0.70

Stop Loss: 80.90
Target(s): 88.50
Current Option Gain/Loss: - 53.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: SNA was not exempt from the market's widespread weakness. Shares hit our stop loss at $80.90 this afternoon.

- Suggested Positions -

May $85 call (SNA1318E85) entry $1.30 exit $0.60*(-53.8%)

04/03/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.

chart:

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


CLOSED BEARISH PLAYS

F5 Networks - FFIV - close: 90.52 change: +0.69

Stop Loss: 90.55
Target(s): 85.25
Current Option Gain/Loss: -70.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/03/13: FFIV has not been cooperating with us so last night we decided the best move was to exit positions immediately this morning. Unfortunately the lack of cooperation continued and FFIV gapped open higher at $90.75 this morning. Shares spiked up to their 30-dma before paring their gains.

- Suggested Positions -

Apr $85 PUT (FFIV1320P85) entry $1.40 exit $0.41 (-70.7%)

04/03/13 planned exit at the open this morning
04/02/13 prepare to exit tomorrow at the opening bell
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, 2013