Editor's Note:

The U.S. market continues to rebound off last week's lows. A strong day in European markets helped keep the rally going.

SINA was stopped out.

We have adjusted our strategy on the SPY put play.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 81.90 change: +0.88

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: +29.2%
Time Frame: Exit prior to earnings on May 1st
New Positions: see below

Comments:
04/23/13: The market's strength helped AMT rally to another high. Given the current trend we could see AMT hit our target by the end of the month. Let's not forget that the plan is to exit prior to earnings on May 1st. Readers may want to start raising their 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

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


Clorox Co. - CLX - close: 89.48 change: +0.23

Stop Loss: 87.95
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 1st
New Positions: Yes, see below

Comments:
04/23/13: Traders continue to buy the dips in shares of CLX but the stock has not yet broken out past resistance at $90.00. We are waiting for a bullish breakout.

This is going to be a short-term trade. We may not have time for CLX to make it to $100. The company is due to report earnings on May 1st and we do not want to hold over the announcement. There is too much risk that investors could sell the news after CLX's impressive rally.

Last Friday's high was $90.10. I am suggesting a trigger to buy calls at $90.25. If triggered our short-term target is $94.00.

Trigger @ 90.25

- Suggested Positions -

buy the May $90 call (CLX1318E90) current ask $1.45

Entry on April -- at $---.--
Average Daily Volume = 738 thousand
Listed on April 20 2013


Gilead Sciences - GILD - close: 53.33 change: -0.72

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: +24.7%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/23/13: GILD underperformed its peers and the broader market with a -1.3% decline on Tuesday. Both GILD and rival Bristol-Myers (BMY) released data this morning on their hepatitis C treatments under development. The market might be worried about potential competition from BMY, which could explain today's weakness. Technically shares of GILD have created a bearish engulfing candlestick reversal pattern. We'll have to see if there is any follow through lower. I am not suggesting new positions. Readers may want to raise their stop loss.

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: 38.59 change: +0.27

Stop Loss: 40.05
Target(s): 33.50
Current Option Gain/Loss: -35.2%
Time Frame: exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/23/13: AAWW is not really cooperating with us but then the stock market refuses to roll over. A bullish market environment is putting the brakes on AAWW's down trend. Right now our stop loss is at $40.05 but more conservative traders may want to lower their stop closer to $39.00 instead. I am not suggesting new positions at this time.

- 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


Cubic Corp - CUB - close: 41.69 change: +0.79

Stop Loss: 41.60
Target(s): 37.15
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early May
New Positions: Yes, see below

Comments:
04/23/13: There was no follow through on yesterday's breakdown to new lows in CUB. Shares managed to outperform the market with a +1.9% bounce. The bigger trend is still bearish with a pattern of lower highs. We will wait and see if this rebound continues. Currently the plan is to buy puts if CUB trades at $39.90 or lower.

We want to keep our position size small to limit our risk. Shares of CUB do not trade with a lot of daily volume and that could make the stock prone to more volatility. If triggered at $39.90 our target is $37.15 near its 2011 lows.

Trigger @ 39.90 *Small Positions*

- Suggested Positions -

buy the Jul $40 PUT (CUB1320S40)

Entry on April -- at $---.--
Average Daily Volume = 112 thousand
Listed on April 22 2013


FedEx Corp. - FDX - close: 93.17 change: +0.67

Stop Loss: 95.25
Target(s): 86.50
Current Option Gain/Loss: -25.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23/13: Our FDX put play is in trouble. News out after the closing bell is pushing the stock higher. FDX has been working with the U.S. postal service for 12 years. Today they announced a seven-year extension with FDX transporting USPS express mail and priority mail between major American airports. It is estimated the deal is worth $10.5 billion. The old contract expires in September this year and the new one picks up in October. Shares of FDX spiked higher afterhours on the news and we will likely see FDX gap open higher tomorrow. Odds are very good FDX will hit our stop loss at $95.25.

- Suggested Positions -

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

04/23/13 FDX trading higher after hours on news, the stock will likely hit our stop loss tomorrow morning.
04/20/13 new stop loss @ 95.25
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: 108.03 chg: +0.46

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:
04/23/13: Airline stocks were strong performers today and the group helped lift the transportation sector. The IYT failed to keep pace with the broader market but it is trying to chew threw a cloud of moving averages directly overhead. I don't see any changes from my prior comments.

Trigger @ 104.75

- Suggested Positions -

buy the May $105 PUT (IYT1318Q105)

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


S&P500 ETF - SPY - close: 157.78 change: +1.61

Stop Loss: 160.50
Target(s): 150.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
04/23/13: We are adjusting our entry point strategy on the SPY. Instead of waiting for a breakdown below support near $154.00 we are looking for a failure near resistance. The recent highs near $160 should be new resistance for the SPY.

Tonight we are adjusting the trigger to buy puts from $153.40 to $157.00. We'll move the stop loss to $160.50. The target has been adjusted to $150.25. I am moving the option strike to the May $155s.

This is a much more aggressive entry point since the S&P 500's trend is still higher. Traders will want to strongly consider limiting your position size to reduce your exposure.

Trigger @ 157.00

- Suggested Positions -

buy the May $155 PUT (SPY1318Q155) current ask $1.04

04/23/13 adjust strategy: new trigger @ $157.00,
new stop loss @ 160.50, new target @ 150.25
adjust option strike to 2013 May $155 put

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


Vulcan Materials - VMC - close: 46.98 change: +0.31

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:
04/23/13: VMC failed to keep pace with the rally in the broader market but shares are still trying to rebound. The stock added +0.66%. Nimble traders could look for a failed rally near $48.00 or its simple 200-dma as an alternative entry point to buy puts. Officially the newsletter is waiting for a breakdown to new lows.

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. 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)

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



Longer-Term Play Updates

Longer-Term Portfolio:


Chicago Bridge & Iron Co. - CBI - close: 52.37 change: +0.10

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: -2.2% or Jan's: -5.1%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
Please review our original play description on this page here.

- Suggested Positions -

Long 2013 Jul $55 call (CBI1320G55) Entry $2.20*

- or -

Long 2014 Jan $60 call (CBI1418A60) Entry $2.90*

*option entry price is an estimate since the option did not trade at the time our play opened.

Entry on April 22 at $51.53
Average Daily Volume = 2.5 million
Listed on April 20 2013


CLOSED BEARISH PLAYS

SINA Corp. - SINA - close: 47.92 change: +1.62

Stop Loss: 48.25
Target(s): 42.00
Current Option Gain/Loss: -37.2%
Time Frame: exit PRIOR to earnings in mid-May
New Positions: see below

Comments:
04/23/13: Our SINA trade has been stopped out at $48.25. Even though both the Chinese Shanghai index and the Hong Kong Hang Seng index were down today somehow shares of SINA decided to rally. I couldn't find any news to explain the sudden show of relative strength (+3.5% today). Our stop was hit on the spike to $48.44.

- Suggested Positions -

May $45 PUT (SINA1318Q45) entry $2.20 exit $1.38 (-37.2%)

04/23/13 stopped out at $48.25

chart:

Entry on April 22 at $46.26
Average Daily Volume = 1.7 million
Listed on April 20 2013