Editor's Note:

RAX hit our bearish exit target on Friday. CNQR hit our entry trigger.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 112.51 change: -1.91

Stop Loss: 110.75
Target(s): 117.50
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: AGN underperformed the market on Friday with a -1.6% decline. Shares dipped to short-term support near its 10-dma and the $112.00 level. More conservative traders may want to raise their stop loss closer to the $112.00 area. AGN's movement this past week has created what might be considered a potential top on its weekly chart. Bigger picture AGN still has a bullish trend of higher lows and higher highs.

- Suggested Positions -

Long May $115 call (AGN1318E115) entry $2.28

04/02/13 triggered on gap open higher

chart:

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


Cabela's Inc. - CAB - close: 60.14 change: +0.37

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:
04/05/13: CAB found support near its late March lows and rallied sharply to close back in positive territory on Friday. We're going to keep CAB on the newsletter a little while longer and see if shares can keep this bounce alive. Right now we are still on the sidelines waiting for a breakout higher.

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)

chart:

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


Ingredion Inc. - INGR - close: 73.25 change: -0.12

Stop Loss: 71.75
Target(s): 74.50
Current Option Gain/Loss: +88.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: INGR displayed relative strength most of the week. Shares did see a little bit of profit taking on Friday but traders bought the dip at its rising 10-dma. If the market can build on Friday's bounce then we could see INGR hit our exit target in a few days. Keep in mind that we only have two weeks left on April options and April options are going to grow more volatile. Traders may want to exit early now to lock in gains.

I am raising our stop loss up to $71.75.

- Suggested Positions -

Long Apr $70 call (INGR1320D70) entry $1.70

04/06/13 new stop loss @ 71.75
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

chart:

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


Under Armour - UA - close: 53.04 change: -0.19

Stop Loss: 50.75
Target(s): 58.50
Current Option Gain/Loss: +11.4%
Time Frame: Exit prior to earnings on April 19th
New Positions: Yes, see below

Comments:
04/05/13: The gap down on Friday morning provided a nice entry point for our new call play on UA. Shares opened lower at $52.45. Traders bought the dip near support in the $52.00 area with its 200-dma. If you missed the gap down on Friday I would still consider new bullish positions now at current levels.

Our target is $58.50 but we will plan on exiting prior to the April 19th earnings report.

- Suggested Positions - *Small Positions*

Long May $55 call (UA1318e55) entry $1.48

04/05/13 trade opened on gap down at $52.45

chart:

Entry on April 05 at $52.45
Average Daily Volume = 1.4 million
Listed on April 04, 2013


PUT Play Updates

CF Industries - CF - close: 189.97 change: -0.10

Stop Loss: 191.55
Target(s): 176.00
Current Option Gain/Loss: -12.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: CF has been stuck, hovering at the $190 level, for two days in a row. Friday is almost an exact copy of Thursday's session with the early spike lower reversing higher and then a quiet drift sideways the rest of the session. The $190 level and the 10-dma remain resistance for now. More conservative traders might want to tighten their stop loss even further. Currently our stop loss is at $191.55, which is just above Tuesday's high.

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

04/04/13 new stop loss @ 191.55

chart:

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


Concur Technologies - CNQR - close: 64.43 change: -1.67

Stop Loss: 66.75
Target(s): 60.25
Current Option Gain/Loss: - 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: Our new trade on CNQR is open. The stock gapped open lower at $65.13 and broke below the $65.00 level. Our trigger to buy puts was hit at $64.75. Friday's session also broke down through technical support at its simple 300-dma (orange line on the daily chart).

Earlier Comments:
Now CNQR is testing technical support at its simple 300-dma. A breakdown here could signal a drop toward its November lows.
Readers may want to keep their position size small. The most recent data listed short interest at 21% of the small 53.5 million share float. That does raise the risk of a short squeeze should CNQR suddenly reverse higher. FYI: The Point & Figure chart for CNQR is bearish with a $59 target.

- Suggested Positions -

Long May $65 PUT (CNQR1318Q65) entry $3.40

chart:

Entry on April 05 at $64.75
Average Daily Volume = 325 thousand
Listed on April 03, 2013


CVR Energy, Inc. - CVI - close: 50.70 change: +2.01

Stop Loss: 51.65
Target(s): 45.25
Current Option Gain/Loss: -46.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: CVI didn't see a lot of movement on Friday. Shares were content to churn sideways near support/resistance at the $50.00 mark. The big rebound off Wednesday's low is still a concern. Readers may want to wait for a new drop below $49.00 before considering new bearish positions.

Earlier Comments:
Keep position size small to limit risk.

- Suggested Positions -

Long May $45 PUT (CVI1318Q45) Entry $1.40

04/04/13 readers may want to exit early right here following today's close back above $50 and its 100-dma.

chart:

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


Joy Global, Inc. - JOY - close: 56.73 change: -0.01

Stop Loss: 58.65
Target(s): 52.50
Current Option Gain/Loss: +18.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: JOY just barely tagged a new relative low on Friday morning before bouncing back to close virtually unchanged. The trend is still down but JOY is still arguably oversold at current levels and could see a bounce back toward its 10-dma or the $58 level. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr 60 PUT (JOY1320P60) entry $3.05

04/03/13 new stop loss @ 58.65

chart:

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


Kirby Corp. - KEX - close: 73.83 change: +0.53

Stop Loss: 76.05
Target(s): 67.00
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/05/13: Friday's gap down and bounce in the stock market did not help our new KEX trade. Shares opened at $72.60, dipped to $71.74, and rebounded to a +0.7% gain. I am suggesting readers wait for this bounce to stall or reverse before considering new positions. Shares could reverse here near the 50-dma or they might make it back to resistance at $75.00 before rolling over again.

- Suggested Positions -

Long May $70 PUT (KEX1318Q70) entry $1.80

chart:

Entry on April 05 at $72.60
Average Daily Volume = 391 thousand
Listed on April 04, 2013


Vitamin Shoppe, Inc. - VSI - close: 47.46 change: +0.32

Stop Loss: 50.15
Target(s): 45.50
Current Option Gain/Loss: +30.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: VSI followed the market lower with a gap down at the open. Shares bounced at $45.90 and rebounded back into positive territory. The overall trend is very much down but VSI is oversold. I would not be surprised to see shares bounce back toward short-term technical support at the 10-dma near $48.50.

I am not suggesting new positions at this time. Keep in mind that our April options only have two weeks left.

- Suggested Positions -

Long Apr $50 PUT (VSI1320P50) entry $2.00

04/01/13 new stop loss @ 50.15

chart:

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


CLOSED BEARISH PLAYS

Rackspace Hosting - RAX - close: 47.29 change: +0.43

Stop Loss: 50.25
Target(s): 45.50
Current Option Gain/Loss: +82.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/05/13: Target achieved.

The market's weakness on Friday morning pushed RAX to gap open lower at $46.00 and hit an intraday low of $45.21. Our exit target was hit at $45.50 before shares bounced back.

Earlier Comments:
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 -

Apr $50 PUT (RAX1320P50) entry $2.35 exit $4.30 (+82.9%)

04/05/13 target hit
04/02/13 triggered on gap open lower at $48.86

chart:

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