Editor's Note:

The large cap S&P 500 index is testing its all-time highs near the 1575 area. We could see the market break out to new all-time highs soon. Or we could see stocks reverse. Right now momentum is favoring the bulls.

We are removing CAB and BIDU as active trades. CF has been stopped out. We want to exit CVI at the opening bell tomorrow.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 113.70 change: +1.00

Stop Loss: 110.75
Target(s): 117.50
Current Option Gain/Loss: - 1.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: Monday's very late day rebound continued into Tuesday and shares added a dollar. AGN looks poised to test resistance at $115.00 soon.

- 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


Ingredion Inc. - INGR - close: 72.95 change: -1.04

Stop Loss: 71.75
Target(s): 74.50
Current Option Gain/Loss: + 41.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: Ouch! INGR was a painful underperformer today. Something happened this morning that sparked a sharp sell-off in the first hour of trading. I couldn't find any news on INGR so it could be headlines from a peer in the food industry. It does look like traders were buying the dip late this afternoon. The pullback today (-1.04) crushed the bid on our call (-1.40). I am not suggesting new positions.

- 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

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


Kimberly-Clark - KMB - close: 99.31 change: -0.14

Stop Loss: 97.25
Target(s): 104.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: Yes, see below

Comments:
04/09/13: KMB is still consolidating sideways beneath round-number, psychological resistance at the $100.00 mark.

I am suggesting a trigger to buy calls at $100.25. If triggered our target is $104.00. However, we will plan to exit prior to KMB's earnings report on April 19th.

Trigger @ 100.25

- Suggested Positions -

buy the May $100 call (KMB1318E100) current ask $1.80

Entry on April -- at $---.--
Average Daily Volume = 2.3 million
Listed on April 06 2013


L-3 Communications - LLL - close: 81.84 change: +0.01

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on April 25th
New Positions: Yes, see below

Comments:
04/09/13: The rally in LLL continued this morning but shares failed to break out to new highs. I don't see any changes from my prior comments.

I am suggesting we buy calls if LLL can trade at $82.50 or higher. More aggressive traders could just buy calls right now given today's intraday rebound. We will start with a stop loss at $79.90. Our short-term target is $84.85. However, we will plan on exiting positions prior to LLL's earnings report on April 25th.

NOTE: I am listing the May $85 calls. You could limit the impact of the bid/ask spread if you went with the May $80 calls instead.

Trigger @ 82.50

- Suggested Positions -

buy the May $85 call (LLL1318E85) current ask $0.55

Entry on April -- at $---.--
Average Daily Volume = 600 thousand
Listed on April 08 2013


Under Armour - UA - close: 54.21 change: +0.19

Stop Loss: 50.75
Target(s): 58.50
Current Option Gain/Loss: +41.8%
Time Frame: Exit prior to earnings on April 19th
New Positions: Yes, see below

Comments:
04/09/13: The rally in UA stalled a bit with shares spending much of the day moving sideways under the $54.00 mark. Yet by the closing bell UA was up +0.3%.

The $55.00 level could prove to be round-number resistance. More conservative traders might want to take profits early as UA nears $55.00. We are aiming for $58.50 but will plan to exit prior to the April 19th earnings.

- Suggested Positions - *Small Positions*

Long May $55 call (UA1318e55) entry $1.48

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

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


PUT Play Updates

Concur Technologies - CNQR - close: 63.78 change: -1.17

Stop Loss: 66.05
Target(s): 60.25
Current Option Gain/Loss: + 5.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: It was a volatile morning for shares of CNQR. The stock gapped open lower and fell to an intraday low of $62.01 (-4.5% at its low of the day) thanks to an analyst downgrade. The midday spike came close to filling the gap and shares ended the session with a -1.8% loss.

I am adjusting our stop loss down to $66.05. I am not suggesting new positions at this time. FYI: I am surprised to see that our option did not trade today.

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

04/09/13 new stop loss @ 66.05

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


CVR Energy, Inc. - CVI - close: 50.66 change: -0.01

Stop Loss: 51.65
Target(s): 45.25
Current Option Gain/Loss: -67.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: CVI has lost its will to move. Shares have been hovering near the $50.00 mark for the last few days. We're giving up on this trade. Not only is the stock not moving but the bid/ask spread on our option is growing worse! I am suggesting an exit at the opening bell tomorrow morning. As an alternative more aggressive traders could try and improve their exit price by setting a limit price somewhere between the bid/ask spread and hope that one of the market makers will fill your order but there are no guarantees.

Earlier Comments:
Keep position size small to limit risk.

- Suggested Positions -

Long May $45 PUT (CVI1318Q45) Entry $1.40

04/09/13 prepare to exit tomorrow at the opening bell
04/04/13 readers may want to exit early right here following today's close back above $50 and its 100-dma.

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


Joy Global, Inc. - JOY - close: 58.15 change: +1.32

Stop Loss: 59.05
Target(s): 52.50
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: Mining-related stocks outperformed the market today. Shares of JOY was a big winner with a +2.3% gain. The stock's rally has paused near resistance at its simple 200-dma and it almost hit its multi-week trend of lower highs. I would hate to see JOY rise up to the trend of lower highs, hit our stop loss, and then rollover again. Thus I am adjusting our stop loss from $58.65 to $59.05. This does increase our risk on this trade. More conservative traders may want to just abandon ship right here instead. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr 60 PUT (JOY1320P60) entry $3.05

04/09/13 adjust stop loss to $59.05
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: 74.19 change: -0.22

Stop Loss: 76.05
Target(s): 67.00
Current Option Gain/Loss: -19.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/09/13: The oversold bounce in KEX is starting to falter. Readers could use today's decline as a new bearish entry point to buy puts. More conservative traders could adjust their stops closer to the $75.00 mark.

- Suggested Positions -

Long May $70 PUT (KEX1318Q70) entry $1.80

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


Vitamin Shoppe, Inc. - VSI - close: 48.44 change: -0.53

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:
04/09/13: There was no follow through on yesterday's bullish breakout past VSI's 10-dma. I remain cautious here. Traders were buying the dip near $48.00 midday.

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

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


CLOSED BULLISH PLAYS

Cabela's Inc. - CAB - close: 60.05 change: -0.22

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:
04/09/13: We've been waiting for shares of CAB to rally and breakout to new highs. Unfortunately the stock seems stuck hovering near the $60.00 level. I am removing CAB as a candidate.

Trade did not open.

04/09/13 removed from the newsletter. CAB did not hit our trigger.

chart:

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


CLOSED BEARISH PLAYS

Baidu, Inc. - BIDU - close: 84.87 change: +0.80

Stop Loss: 86.05
Target(s): 76.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: BIDU is not cooperating. We were hoping to catch a breakdown to new lows. The stock has been slowly rebounding this week. We are removing BIDU from the newsletter but readers may want to keep an eye on it. Shares failed to hit our entry trigger at $82.75.

Trade did not open.

04/09/13 removed from the newsletter.

chart:

Entry on April -- at $---.--
Average Daily Volume = 3.6 million
Listed on April 06 2013


CF Industries - CF - close: 190.98 change: +1.29

Stop Loss: 191.55
Target(s): 176.00
Current Option Gain/Loss: -29.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/09/13: Our CF trade has been stopped out at $191.55.

I didn't see any specific headlines behind the sudden show of strength in shares of CF this morning. The stock gapped open higher, above resistance, at $190.48 and surged to $193.50 before paring its gains. Our stop loss was hit at $191.55.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because CF can be a volatile stock.

*Small Positions* - Suggested Positions -

May $180 PUT (CF1318Q180) entry $3.90 exit $2.75 (-29.4%)

04/09/13 stopped out
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