Editor's Note:

The U.S. market rebounded right out of the opening gate this morning. The S&P 500 closed near its highs for the session. The lack of follow through lower means the trend of higher lows remains intact.

Our AGN trade was stopped out.
Prepare to exit our SNDK trade tomorrow.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 80.59 change: +1.16

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: - 7.3%
Time Frame: Exit prior to earnings in early May
New Positions: see below

Comments:
04/16/13: AMT dipped just below its simple 10-dma before bouncing this morning. The stock posted a +1.4% gain and almost erased yesterday's losses. Readers may want to wait for a rally past $81.00 before initiating new positions.

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: 52.01 change: +1.33

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: - 9.2%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/16/13: Two days in a row this week GILD has garnered bullish analyst comments and a higher price target. That helped shares gap open higher this morning. Today's rebound (+2.6%) managed to erase yesterday's losses.

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: 101.58 change: +1.37

Stop Loss: 99.45
Target(s): 104.00
Current Option Gain/Loss: +34.6%
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: see below

Comments:
04/16/13: KMB recovered from yesterday's dip with a +1.3% gain and a new intraday high near $102. While the trend is up I want to remind you that our play is almost over. KMB is scheduled to report earnings on Friday morning (April 19th). We will plan exiting positions Thursday at the closing bell if KMB doesn't hit our target by then.

- Suggested Positions -

Long May $100 call (KMB1318E100) entry $2.45

04/16/13 prepare to exit by Thursday's closing bell
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: 82.68 change: +1.10

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: -31.2%
Time Frame: Exit prior to earnings on April 25th
New Positions: see below

Comments:
04/16/13: The defense industry lagged behind the bounce in the S&P 500 but LLL managed a +1.3% gain. Shares look poised to challenge its recent high near $84.00 soon. More conservative traders might want to adjust their stop closer to yesterday's low (near the 20-dma).

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: 57.49 change: +1.50

Stop Loss: 55.75
Target(s): 59.75
Current Option Gain/Loss: +12.7%
Time Frame: exit PRIOR to earnings on April 17th
New Positions: see below

Comments:
04/16/13: SNDK outperformed the broader market with a +2.6% bounce on Tuesday. That may be due to another analyst raising their price target on the stock. Investors seem bullish ahead of the company's earnings report. Tomorrow is our last day. SNDK is scheduled to report earnings on April 17th after the closing bell. We will plan on exiting positions tomorrow at the close to avoid holding over the announcement.

- Suggested Positions -

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

04/16/13 prepare to exit tomorrow (04/17/13) at the closing bell
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: 86.64 change: +0.88

Stop Loss: 84.95
Target(s): 92.00
Current Option Gain/Loss: -12.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16/13: Tuesday was a relatively quiet session for ULTA. Shares churned sideways between $85.50 and $87.00. We are cautiously bullish here. Readers could wait for a rally past $87.00 before considering new 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: 52.03 change: +0.87

Stop Loss: 50.90
Target(s): 57.50
Current Option Gain/Loss: -15.1%
Time Frame: Exit PRIOR to earnings on April 24
New Positions: see below

Comments:
04/16/13: WDC followed the market higher this morning and posted a +1.7% gain by the close. Yet while the major indices closed near their high for the session WDC was pulling back at the closing bell. I am urging traders to remain cautious.

*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

FedEx Corp. - FDX - close: 95.14 change: +0.43

Stop Loss: 96.25
Target(s): 86.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/16/13: Today's bounce in FDX was relatively meager. The S&P 500 added +1.4% and the transportation average added +2.2%. Yet FDX only gained +0.4%. This "weakness" could be a clue. Currently we are on the sidelines waiting for FDX to break down below support.

Earlier Comments:
I am suggesting a trigger to launch bearish positions at $93.50. If triggered our target is $86.50.

Trigger @ $93.50

- Suggested Positions -

buy the May $92.50 PUT (FDX1318Q92.5)

Entry on April -- at $---.--
Average Daily Volume = 3.3 million
Listed on April 15 2013


CLOSED BULLISH PLAYS

Allergan Inc. - AGN - close: 113.12 change: -0.91

Stop Loss: 112.45
Target(s): 117.50
Current Option Gain/Loss: -25.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16/13: Most of the market rallied off the open this morning. Not so for shares of AGN. Before the opening bell the company disclosed it had received a "Complete Response Letter" from the U.S. FDA for its new drug application for LEVADEX, an inhalation aerosol for the acute treatment of migraine in adults. Essentially this is a temporary rejection letter from the FDA pointing out issues the government would like AGN to fix.

Shares of AGN gapped open lower on the news at $112.99 and spiked down toward $111.94 on an intraday basis although if I look at my intraday charts the morning low appears to be $110.00 so that could be a bad tick or an errant pre-market trade. Our stop loss was hit at $112.45.

- Suggested Positions -

May $115 call (AGN1318E115) entry $2.28 exit $1.70 (-25.4%)

04/16/13 stopped out
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