Editor's Note:

Renewed worries over a slowdown in global growth rattled the markets on Monday thanks to some disappointing economic numbers out of China on Sunday. Headlines about bombs exploding near the finish line of the Boston marathon only exacerbated the market's weakness.

UA hit our target.
ALXN was stopped out.
MON has been removed.


Current Portfolio:


CALL Play Updates

Allergan Inc. - AGN - close: 114.03 change: -1.99

Stop Loss: 112.45
Target(s): 117.50
Current Option Gain/Loss: +18.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/15/13: AGN failed near $116 this morning and declined to the $114 level near its 10-dma by the closing bell (-1.7%). If the $114 level fails the next levels of potential support are the 20-dma near $112.60 and the $112.00 level. Of course our stop loss is currently at $112.45. More conservative traders may want to raise their stops.

- 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

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


American Tower Corp. - AMT - close: 79.43 change: -1.24

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: -26.8%
Time Frame: Exit prior to earnings in early May
New Positions: see below

Comments:
04/15/13: The stock market's sell-off today has produced a bearish reversal in AMT. The close back below $80.00 is short-term bearish. Shares should see some support at the rising 10-dma near $79.15. I am leaving our stop loss at $78.75.

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

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


Gilead Sciences - GILD - close: 50.68 change: -1.25

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: -32.9%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/15/13: GILD garnered some bullish analyst comments today, which probably accounted for GILD's gap open higher. Unfortunately the gains didn't last and biotech stocks were actually a weak spot for the market. Technically today's pullback in GILD (-2.4%) has created a bearish engulfing candlestick reversal pattern. Odds are good we are going to see GILD test the $50.00 mark soon.

Earlier Comments:
I do consider this a more aggressive entry point. More conservative traders may want to wait for a pullback near the $50.50-50.00 zone as an alternative entry point. Our target is $56.50 but we'll plan on exiting prior to the May 2nd earnings report.

- Suggested Positions -

Long May $52.50 call (GILD1318e52.5) entry $1.94

Entry on April 15 at $52.25
Average Daily Volume = 11.7 million
Listed on April 13 2013


Kimberly-Clark - KMB - close: 100.21 change: -1.02

Stop Loss: 99.45
Target(s): 104.00
Current Option Gain/Loss: -2.0%
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: see below

Comments:
04/15/13: The stock market's widespread decline today pulled KMB back towards round-number support/resistance at the $100.00 level. If the $100 mark fails the rising 10-dma near $99.70 should also offer some support. We only have three days left on this trade and readers may want to exit now to avoid or minimize any losses. I am raising our stop loss to $99.45.

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

04/15/13 new stop loss @ 99.45
04/13/13 new stop loss @ 98.75
04/11/13 new stop loss @ 97.85

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


L-3 Communications - LLL - close: 81.58 change: -0.87

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: -50.0%
Time Frame: Exit prior to earnings on April 25th
New Positions: see below

Comments:
04/15/13: The pullback in LLL wasn't that bad. Shares only gave back -1.0%. LLL could have short-term support near its 20-dma but if the broader market accelerates lower we could see LLL test the $80 level soon. I am not suggesting new positions.

Earlier Comments:
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

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


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

Stop Loss: 55.75
Target(s): 59.75
Current Option Gain/Loss: -14.4%
Time Frame: exit PRIOR to earnings on April 17th
New Positions: see below

Comments:
04/15/13: SNDK had its price target raised to $70 today but that failed to stop the profit taking. Shares plunged from $58 to $56 and almost hit our stop loss. The intraday low was $55.81. Our stop is at $55.75. If the market sees any follow through lower tomorrow we will likely see SNDK get stopped out.

I am not suggesting new positions at this time.

- Suggested Positions -

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

04/13/13 new stop loss @ 55.75

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


Ulta Salon - ULTA - close: 85.76 change: -1.93

Stop Loss: 84.95
Target(s): 92.00
Current Option Gain/Loss: -30.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/15/13: The market's decline helped produce a -2.2% pullback in ULTA. Shares opened at $87.50 and plunged toward what looks like short-term support near $85.00.

At this point I would wait for a bounce, likely near $85.00, before considering new bullish positions.

Earlier Comments:
I do consider this an aggressive, higher-risk trade so we do want to limit our position size to reduce our risk. There is a chance that the $90.00 level, the early March high at $92.12, or any of the myriad of moving averages directly overhead could become resistance for the stock.

*Small Positions* - Suggested Positions -

Long May $90 call (ULTA1318e90) entry $1.95

Entry on April 15 at $87.50
Average Daily Volume = 1.78 million
Listed on April 13 2013


Western Digital Corp. - WDC - close: 51.16 change: -1.16

Stop Loss: 50.90
Target(s): 57.50
Current Option Gain/Loss: -25.4%
Time Frame: Exit PRIOR to earnings on April 24
New Positions: see below

Comments:
04/15/13: WDC tried to rally but by 10:30 this morning shares were rolling over beneath last week's highs. I strongly suspect we will see WDC hit our stop loss at $50.90 tomorrow. More conservative traders may want to exit immediately.

*Small Positions* - Suggested Positions -

Long May $55 call (WDC1318E55) entry $1.85

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

Alexion Pharma. - ALXN - close: 96.22 change: -3.88

Stop Loss: 97.95
Target(s): 107.50
Current Option Gain/Loss: -41.8%
Time Frame: exit PRIOR to earnings on April 25
New Positions: see below

Comments:
04/15/13: The biotech sector was an underperformer today and ALXN underperformed its peers with a -3.8% decline. Shares hit our stop loss at $97.95.

- Suggested Positions -

May $105 call (ALXN1318E105) entry $2.75 exit $1.60 (-41.8%)

04/15/13 stopped out at $97.95

chart:

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


Monsanto Co - MON - close: 103.10 change: -2.35

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:
04/15/13: The profit taking in MON continues. Traders initially bought the dip at its 50-dma this morning but shares were rolling over again by the closing bell. Our trigger to launch positions is at $107.50 and it's unlikely that MON will hit our trigger any time soon. We are removing MON as a candidate.

Trade did not open.

04/15/13 removed from the newsletter

chart:

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


Under Armour - UA - close: 56.39 change: -0.61

Stop Loss: 54.75
Target(s): 57.75
Current Option Gain/Loss: +163.5%
Time Frame: Exit prior to earnings on April 19th
New Positions: Yes, see below

Comments:
04/15/13: Target exceeded.

Thank goodness UA was upgraded this morning. The positive analyst comments sparked a gap open higher for UA. Shares opened at $57.97 and traded to $58.52 before reversing. Over the weekend we adjusted our exit target to $57.75 so the gap higher closed our trade.

- Suggested Positions - *Small Positions*

Long May $55 call (UA1318e55) entry $1.48 exit $3.90 (+163.5%)

04/15/13 target exceeded on gap higher
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