Editor's Note:

There was no follow through on yesterday's market bounce. Stocks reversed in another widespread decline.

Our SNDK, ULTA, and WDC trades were stopped out.
AAWW was triggered.

We want to exit our KMB trade at the opening bell tomorrow.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 79.78 change: -0.81

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:
04/17/13: The market's weakness weighed on AMT and shares traded sideways after the morning gap down. Shares ended the day off -1% but managed to hold short-term technical support at the 10-dma. I am not suggesting new positions at this time.

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: 51.94 change: -0.07

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: - 6.7%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/17/13: Three days in a row now GILD has garnered bullish analyst comments. This may have helped shares rebound from their morning lows. The stock bounced back to close almost unchanged on the session. More conservative traders might want to adjust their stops closer to the $50.50 level.

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: 100.66 change: -0.92

Stop Loss: 99.45
Target(s): 104.00
Current Option Gain/Loss: +12.2%
Time Frame: Exit PRIOR to earnings on April 19th
New Positions: see below

Comments:
04/17/13: KMB succumbed to the market's widespread weakness on Wednesday. Shares gave back -0.9%. The trend is still up for now and KMB should have support near $100 and its 10-dma. Unfortunately we are out of time. Tonight we are adjusting our exit strategy. Instead of exiting tomorrow at the closing bell we will exit at the opening bell tomorrow.

- Suggested Positions -

Long May $100 call (KMB1318E100) entry $2.45

04/17/13 Strategy change: ready to exit tomorrow at the opening bell!
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: 80.31 change: -2.37

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: -75.0%
Time Frame: Exit prior to earnings on April 25th
New Positions: see below

Comments:
04/17/13: Our LLL trade looks like it's in trouble. The stock underperformed the major indices with a -2.8% decline. LLL has broken down below its 20-dma and looks poised to test the $80.00 mark soon. Our stop loss is at $79.90. If the market continues to sink tomorrow we'll likely see LLL hit our stop. More conservative traders may want to exit at the opening bell tomorrow.

- Suggested Positions -

Long May $85 call (LLL1318E85) entry $0.80

04/17/13 LLL is showing relative weakness. More conservative traders may want to exit at the open tomorrow

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


PUT Play Updates

Atlas Air Worldwide - AAWW - close: 38.04 change: -0.69

Stop Loss: 40.05
Target(s): 33.50
Current Option Gain/Loss: -11.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/17/13: Just as expected shares of AAWW have continued to move lower. The stock hit our entry trigger to buy puts at $38.00. I would still consider new positions now at current levels.

Our target is $33.50 but more conservative traders could exit early near $35.00 instead. FYI: The Point & Figure chart for AAWW is bearish with a $29 target.

- Suggested Positions -

Long May $37.50 PUT (AAWW1318Q37.5) entry $1.70

Entry on April 17 at $38.00
Average Daily Volume = 262 thousand
Listed on April 16 2013


FedEx Corp. - FDX - close: 94.12 change: -1.02

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:
04/17/13: The transportation sector continues to look vulnerable. FDX broke down to a new relative low but bounced near its simple 200-dma. The intraday low today was $93.59. Readers might want to consider new bearish positions now but the newsletter is suggesting a trigger to buy puts at $93.50.

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

SanDisk Corp. - SNDK - close: 55.72 change: -1.77

Stop Loss: 55.75
Target(s): 59.75
Current Option Gain/Loss: -21.2%
Time Frame: exit PRIOR to earnings on April 17th
New Positions: see below

Comments:
04/17/13: We were planning to exit our SNDK trade at the closing bell tonight. Unfortunately technology stocks were underperformers. Shares of SNDK followed the NASDAQ lower right from the start. Both plunged through the first half of the session before trying to pare their losses. SNDK hit our stop loss at $55.75. The company reported earnings after the closing bell.

- Suggested Positions -

May $57.50 call (SNDK1318e57.5) entry $2.35 exit $1.85 (-21.2%)

04/17/13 stopped out at $55.75
04/16/13 prepare to exit tomorrow (04/17/13) at the closing bell
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


Ulta Salon - ULTA - close: 84.47 change: -2.18

Stop Loss: 84.95
Target(s): 92.00
Current Option Gain/Loss: -48.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/17/13: The market's widespread market weakness on Wednesday crushed ULTA for a -2.5% decline. The stock has broken its bullish trend of higher lows and ULTA hit our stop at $84.95.

Earlier Comments:
I do consider this an aggressive, higher-risk trade so we do want to limit our position size to reduce our risk.

*Small Positions* - Suggested Positions -

May $90 call (ULTA1318e90) entry $1.95 exit $1.00 (-48.7%)

04/17/13 stopped out

chart:

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


Western Digital Corp. - WDC - close: 50.57 change: -1.46

Stop Loss: 50.90
Target(s): 57.50
Current Option Gain/Loss: -39.4%
Time Frame: Exit PRIOR to earnings on April 24
New Positions: see below

Comments:
04/17/13: Technology stocks were some of the market's worst performers today. WDC underperformed with a -2.8% decline. Shares managed to hold above the $50.00 mark but our stop loss was hit at $50.90.

*Small Positions* - Suggested Positions -

May $55 call (WDC1318E55) entry $1.85 exit $1.12 (-39.4%)

04/17/13 stopped out

chart:

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