Editor's Note:

The S&P 500 index closed just below what should have been technical support at its simple 50-dma. Will stocks rebound off this level or continue to break down?

KMB was closed this morning.
LLL was stopped out.
FDX was triggered.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 80.06 change: +0.28

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: -21.9%
Time Frame: Exit prior to earnings in early May
New Positions: see below

Comments:
04/18/13: For the second time in three days traders bought the dip in AMT near the $79.00 level. If the market will cooperate we could see AMT breaking out to new highs soon. I'm still bullish on AMT but concerned the broader market looks weak. 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: 50.86 change: -1.08

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: -31.9%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/18/13: GILD underperformed the market with a -2.0% decline on Thursday. Shares retreated to the bottom of its short-term trading range in the $50.50-52.50 zone. If the market turns lower again tomorrow we could see GILD break down and hit our stop loss at $49.75.

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


PUT Play Updates

Atlas Air Worldwide - AAWW - close: 38.18 change: +0.14

Stop Loss: 40.05
Target(s): 33.50
Current Option Gain/Loss: -20.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/18/13: Thursday was a quiet session for shares of AAWW. Shares churned sideways near the $38.00 level. Today's low was $37.75. More conservative traders may want to wait for a new drop below $37.75 as an alternative entry point to buy puts.

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: 91.87 change: -2.25

Stop Loss: 96.25
Target(s): 86.50
Current Option Gain/Loss: +27.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/18/13: We have been waiting for FDX to break down below support and hit our trigger at $93.50. The stock got a push over the edge this morning with an analyst downgrade. This news sparked a gap lower at $93.18 and FDX fell to a -2.39% decline. The gap down triggered our play.

Trigger @ $93.50

- Suggested Positions -

Long May $92.50 PUT (FDX1318Q92.5) entry $2.12

04/18/13 trade opened on gap down at $93.18, trigger was $93.50

Entry on April 18 at $93.18
Average Daily Volume = 3.3 million
Listed on April 15 2013


Dow Jones Transportation ETF - IYT - close: 105.79 chg: -0.08

Stop Loss: 107.05
Target(s): 100.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/18/13: Surprisingly the IYT transportation ETF did not see further weakness. The downward pressure was stymied by a bounce in the railroad industry. Shares of the IYT drifted sideways. Overall I don't see any changes from my prior comments.

I am suggesting a trigger to buy puts at $104.75. If triggered our target is $100.25.

Trigger @ 104.75

- Suggested Positions -

buy the May $105 PUT (IYT1318Q105) current ask $2.20

Entry on April -- at $---.--
Average Daily Volume = 904 thousand
Listed on April 17 2013


CLOSED BULLISH PLAYS

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:
04/18/13: Our KMB trade is closed. The plan was to exit positions this morning at the opening bell. Shares opened at $100.64 before surging to a new intraday high above $102.00.

- Suggested Positions -

May $100 call (KMB1318E100) entry $2.45 exit $2.75 (+12.2%)

04/18/13 planned exit this morning
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

chart:

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


L-3 Communications - LLL - close: 80.19 change: -0.12

Stop Loss: 79.90
Target(s): 84.85
Current Option Gain/Loss: -87.5%
Time Frame: Exit prior to earnings on April 25th
New Positions: see below

Comments:
04/18/13: I cautioned readers yesterday that given the market's and LLL's recent weakness we would likely see this stock hit our stop loss. Shares did trade below the $80.00 mark and they hit our stop at $79.90 before paring its losses.

- Suggested Positions -

May $85 call (LLL1318E85) entry $0.80 exit $0.10 (-87.5%)

04/18/13 stopped out
04/17/13 LLL is showing relative weakness. More conservative traders may want to exit at the open tomorrow

chart:

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