Editor's Note:

Shares of Joy Global (JOY) hit our bearish target on Friday. We also closed our INGR trade as a winner. CNQR hit our stop loss.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 116.02 change: -0.15

Stop Loss: 112.45
Target(s): 117.50
Current Option Gain/Loss: +44.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13/13: Traders bought the dip on Friday morning near $115 and the stock recovered to almost unchanged. I am raising our stop loss to $112.45. More conservative traders may want to consider raising their stop even higher. Our exit target is $117.50. More aggressive traders could aim higher.

- Suggested Positions -

Long May $115 call (AGN1318E115) entry $2.28

04/13/13 new stop loss @ 112.45
04/10/13 new stop loss @ 111.75
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


Alexion Pharma. - ALXN - close: 100.10 change: -0.32

Stop Loss: 97.95
Target(s): 107.50
Current Option Gain/Loss: -16.3%
Time Frame: exit PRIOR to earnings on April 25
New Positions: see below

Comments:
04/13/13: ALXN managed a rebound near its simple 200-dma late Friday morning. Shares spent the rest of the session consolidating sideways. We have just less than two weeks for this trade to work. The plan will be to exit prior to ALXN's earnings report on April 25th. At this point I would wait for ALXN to trade above Thursday's high ($100.78) before initiating new positions.

- Suggested Positions -

Long May $105 call (ALXN1318E105) entry $2.75

chart:

Entry on April 11 at $100.75
Average Daily Volume = 1.58 million
Listed on April 10 2013


American Tower Corp. - AMT - close: 80.67 change: +0.35

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings in early May
New Positions: see below

Comments:
04/13/13: AMT is certainly acting bullish with traders buying the dip near $80.00. As broken resistance the $80 level is already acting as new short-term support. The stock closed near its high for the day. I would still consider new positions at current levels.

Our target is $84.75. More aggressive traders could aim higher. FYI: The Point & Figure chart for AMT is bullish with a $94 target.

- Suggested Positions -

Long May$80 call (AMT1318E80) entry $2.05

chart:

Entry on April 11 at $80.25
Average Daily Volume = 2.2 million
Listed on April 09 2013


Kimberly-Clark - KMB - close: 101.23 change: +0.11

Stop Loss: 98.75
Target(s): 104.00
Current Option Gain/Loss: +22.4%
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: see below

Comments:
04/13/13: KMB continued to push higher on Friday although shares pared their gains from the intraday high. I would not be surprised to see KMB dip back toward $100.00 or even its simple 10-dma near $99.50. We are raising the stop loss to $98.75. Please note that we will plan on exiting positions on Thursday's closing bell at the latest to avoid holding over KMB's earnings report due out on Friday morning, April 19th.

Our target is $104.00. However, we will plan to exit prior to KMB's earnings report on April 19th.

- Suggested Positions -

Long May $100 call (KMB1318E100) entry $2.45

04/13/13 new stop loss @ 98.75
04/11/13 new stop loss @ 97.85

chart:

Entry on April 10 at $100.25
Average Daily Volume = 2.3 million
Listed on April 06 2013


L-3 Communications - LLL - close: 82.45 change: -0.85

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: -25.0%
Time Frame: Exit prior to earnings on April 25th
New Positions: see below

Comments:
04/13/13: Defense-related stocks hit some profit taking on Friday. LLL gapped lower and then spiked down toward short-term support near $82.00 and its 10-dma. I cautioned readers on Thursday to expect this dip. The stock spent the rest of Friday drifting sideways. We have just less than two weeks left for this trade to work. Nimble traders could use a bounce from current levels as a new entry point. More conservative traders may want to raise their stop loss.

Our short-term target is $84.85. However, we will plan on exiting positions prior to LLL's earnings report on April 25th.

- Suggested Positions -

Long May $85 call (LLL1318E85) entry $0.80

chart:

Entry on April 10 at $82.50
Average Daily Volume = 600 thousand
Listed on April 08 2013


Monsanto Co - MON - close: 105.45 change: -1.65

Stop Loss: 104.95
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/13/13: MON hit some profit taking on Friday and erased Thursday's gains. If this dip continues I would look for MON to find some short-term support near $104.00. Currently we are on the sidelines waiting for a breakout higher. The plan is to buy calls when MON hit $107.50. If triggered our target is $114.00.

Trigger @ 107.50

- Suggested Positions -

buy the May $110 call (MON1318E110)

chart:

Entry on April -- at $---.--
Average Daily Volume = 2.8 million
Listed on April 11 2013


SanDisk Corp. - SNDK - close: 57.71 change: -0.91

Stop Loss: 55.75
Target(s): 59.75
Current Option Gain/Loss: +19.1%
Time Frame: exit PRIOR to earnings on April 17th
New Positions: see below

Comments:
04/13/13: A disappointing report on first quarter computer sales weighed heavily on the technology sector. SNDK garnered bullish analyst comments on Friday but they were not enough to stem some profit taking. SNDK underperformed the market with a -1.5% pullback. That's not too surprising since shares were up strongly with the prior four-day bounce.

Technically Friday's pullback has created a bearish engulfing candlestick reversal pattern. These patterns need to be confirmed but it's still a warning signal. More conservative traders may want to exit early now. We only have two or three days left for this trade. SNDK is scheduled to report earnings on Wednesday, April 17th, after the market's closing bell and we do not want to hold over the announcement.

I am not suggesting new positions at this time. I am moving the stop loss to $55.75.

- Suggested Positions -

Long May $57.50 call (SNDK1318e57.5) entry $2.35

04/13/13 new stop loss @ 55.75

chart:

Entry on April 10 at $56.75
Average Daily Volume = 3.3 million
Listed on April 09 2013


Under Armour - UA - close: 57.00 change: +0.97

Stop Loss: 54.75
Target(s): 57.75
Current Option Gain/Loss: +143.2%
Time Frame: Exit prior to earnings on April 19th
New Positions: Yes, see below

Comments:
04/13/13: We still have four days left on this UA trade but we probably want to consider taking profits now. UA has surged five days in a row to new multi-month highs. Our option has more than doubled (currently +143%). Readers will want to seriously consider an exit now. I am lowering our exit target to $57.75. We are moving the stop loss to $54.75.

- Suggested Positions - *Small Positions*

Long May $55 call (UA1318e55) entry $1.48

04/13/13 new stop loss @ 54.75, readers may want to exit early now.
new exit target at $57.75
04/11/13 new stop loss @ 52.75
04/10/13 UA has hit potential resistance at $55.00. Readers may want to take profits right now
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


Western Digital Corp. - WDC - close: 52.32 change: -0.07

Stop Loss: 50.90
Target(s): 57.50
Current Option Gain/Loss: - 2.1%
Time Frame: Exit PRIOR to earnings on April 24
New Positions: see below

Comments:
04/13/13: WDC didn't make any progress on Friday. The stock opened at $52.41 and churned sideways after a little early morning volatility. I don't see any changes from my prior comments. I would still consider new positions now. More conservative traders could wait for a rally past $53.00 as an alternative entry point.

Earlier Comments:
The stock had rallied to new 15-year highs on Wednesday. Traders should consider this a more aggressive, higher-risk trade. Earnings are coming up on April 24th and we do not want to hold over the announcement. Furthermore, WDC's all-time high was set in the $54.50-54.75 zone way back in 1997. Thus the $54.50-55.00 area could be resistance.

We'll try and reduce our risk by keeping position size small and using a stop loss at $50.90. FYI: The Point & Figure chart for WDC is bullish with an $82 target.

*Small Positions* - Suggested Positions -

Long May $55 call (WDC1318E55) entry $1.85

chart:

Entry on April 12 at $52.41
Average Daily Volume = 2.4 million
Listed on April 11 2013


PUT Play Updates


Currently we do not have any active put trades.



CLOSED BULLISH PLAYS

Ingredion Inc. - INGR - close: 73.75 change: -0.26

Stop Loss: 71.75
Target(s): 74.50
Current Option Gain/Loss: +105.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13/13: Given INGR's relative strength I was expecting shares to hit our exit target at $74.50 on Friday. Unfortunately the rally stalled. On Thursday we adjusted our plan to exit positions on Friday at the closing bell if INGR had not hit our target by then.

- Suggested Positions -

Apr $70 call (INGR1320D70) entry $1.70 exit $3.50 (+105.8%)

04/12/13 planned exit at the close
04/11/13 if INGR does not hit our target on Friday, plan on closing positions on Friday at the closing bell (Friday, April 12th)
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


CLOSED BEARISH PLAYS

Concur Technologies - CNQR - close: 65.79 change: +0.59

Stop Loss: 66.05
Target(s): 60.25
Current Option Gain/Loss: -29.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13/13: The oversold bounce in CNQR continued on Friday and shares pierced overhead resistance near its 10-dma, 300-dma and the $66.00 level. Our stop loss was hit at $66.05.

Earlier Comments:
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 -

May $65 PUT (CNQR1318Q65) entry $3.40 exit $2.40* (-29.4%)

04/12/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/09/13 new stop loss @ 66.05

chart:

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


Joy Global, Inc. - JOY - close: 54.47 change: -0.37

Stop Loss: 58.55
Target(s): 54.10
Current Option Gain/Loss: +90.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/13/13: Target achieved.

Looks like we didn't have to move our exit target after all. We were initially aiming for $52.50 but on Thursday night we adjusted our exit target to $54.10. Shares of JOY opened lower at $54.70 on Friday and spiked down to $52.10 before bouncing back.

- Suggested Positions -

Apr 60 PUT (JOY1320P60) entry $3.05 exit $5.80 (+90.1%)

04/12/13 target hit at $54.10
04/11/13 new stop loss @ 58.55, adjust exit target to $54.10
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