Editor's Note:

The S&P 500 index ended its worst week of the year with a bit of a bounce on Friday.

Our bullish candidates hit new highs. Most of our bearish candidates bounced.

We have exciting news tonight. The Option Investor Newsletter is going to expand our play selection. Check out tonight's new plays section.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 81.05 change: +0.99

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: + 4.8%
Time Frame: Exit prior to earnings on May 1st
New Positions: see below

Comments:
04/20/13: An up day for the stock market allowed AMT to rally to a new all-time high. Traders could buy calls on this breakout but if you do consider raising your stop loss.

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


Gilead Sciences - GILD - close: 53.17 change: +2.31

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: +21.1%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/20/13: Positive news from Vertex Pharmaceuticals (VRTX) on a new cystic fibrosis treatment sent shares of VRTX to a +61% gain and gave the biotech sector a big boost. Shares of GILD outperformed the broader market with a +4.5% gain and a bullish breakout to new highs. Traders bought the dip this morning near the simple 10-dma.

Broken resistance in the $52.00-52.50 zone could be new support for GILD and investors might want to adjust their stop loss higher.

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

chart:

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: 38.07 change: -0.11

Stop Loss: 40.05
Target(s): 33.50
Current Option Gain/Loss: -17.6%
Time Frame: exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/20/13: AAWW is still underperforming the market and the transportation sector. Shares failed to bounce on Friday and drifted sideways near the $38.00 level. Once again the stock found some short-term support near $37.75. Thus readers might want to wait for a drop below $37.70 before initiating new put positions.

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

chart:

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


FedEx Corp. - FDX - close: 92.39 change: +0.52

Stop Loss: 95.25
Target(s): 86.50
Current Option Gain/Loss: + 2.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/20/13: After Thursday's bearish breakdown to new three-month lows FDX managed a bit of an oversold bounce on Friday. Shares failed to close back above its 300-dma. Nimble traders could watch for a failed rally near $94.00 and its 200-dma as an alternate entry point to buy puts. I am adjusting our stop loss down to $95.25.

- Suggested Positions -

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

04/20/13 new stop loss @ 95.25
04/18/13 trade opened on gap down at $93.18, trigger was $93.50

chart:

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


Dow Jones Transportation ETF - IYT - close: 107.44 chg: +1.65

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:
04/20/13: Surprisingly the transports were showing some relative strength on Friday. Both the railroads and the airlines were rebounding. Yet the IYT failed to rally back above its 50-dma. This sector ETF still faces the risk of a breakdown.

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)

chart:

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


S&P500 ETF - SPY - close: 155.48 change: +1.34

Stop Loss: 155.65
Target(s): 149.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/20/13: It was the worst week of the year. The bullish momentum appeared to reverse with the S&P 500 index rolling over under the 1600 level. By Thursday's close traders were nervous seeing the S&P 500 and the SPY close below their simple 50-dma. Friday's session managed an oversold bounce with a +0.8% gain. Yet upward momentum could still be in jeopardy.

I am suggesting a trigger to buy puts at $153.40. If triggered our target is $149.00. More conservative traders may want to exit near $150.00 instead. Please note that there are several short-term options for the SPY. Make sure you pick the right option symbol. May's option expiration is May 17th.

Trigger @ 153.40

- Suggested Positions -

buy the May $150 PUT (SPY1318Q150)

chart:

Entry on April -- at $---.--
Average Daily Volume = 130 million
Listed on April 18 2013


Vulcan Materials - VMC - close: 46.05 change: +0.02

Stop Loss: 47.55
Target(s): 40.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early May
New Positions: Yes, see below

Comments:
04/20/13: VMC did not see much follow through on Thursday's sell-off. Shares managed a bounce before hitting a new relative low. The stock continues to look weak and I don't see any changes from my prior comments.

Earlier Comments:
Shares of VMC are in a bearish trend of lower highs and lower lows and recently broke down below its simple 200-dma. The stock is currently testing potential support at its simple 300-dma (near today's low). Monday's low was $45.42. I am suggesting a trigger to buy puts at $44.90. If triggered our target is $40.25. However, keep in mind that VMC is scheduled to report earnings in early May (not date yet) and we will plan to exit prior to the announcement.

Trigger @ 44.90

- Suggested Positions -

buy the May $45 PUT (VMC1318Q45) current ask $1.50

chart:

Entry on April -- at $---.--
Average Daily Volume = 581 thousand
Listed on April 18 2013