Editor's Note:

The big cap S&P 500 index is nearing the recent all-time high set just two weeks ago. Currently the 1,600 level is new overhead resistance for the market.

Our new CONN trade has been triggered.


Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 83.84 change: +2.84

Stop Loss: 80.40
Target(s): 84.75
Current Option Gain/Loss: +100.0%
Time Frame: Exit prior to earnings on May 1st
New Positions: see below

Comments:
04/25/13: AMT was showing lots of strength today with a +3.5% gain and a breakout to new highs. Our call option has doubled in value (+100%) and readers may want to take profits early. I am raising our stop loss to $80.40.

Earlier Comments:
Let's not forget that the plan is to exit prior to earnings on May 1st. The Point & Figure chart for AMT is bullish with a $94 target.

- Suggested Positions -

Long May$80 call (AMT1318E80) entry $2.05

04/25/13 new stop loss @ 80.40, readers may want to exit now since our option has doubled (+100%).

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


Conns Inc. - CONN - close: 44.86 change: +1.04

Stop Loss: 43.45
Target(s): 49.50
Current Option Gain/Loss: -10.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/25/13: The rally in CONN continues. Shares managed to briefly traded above round-number resistance at $45.00. Our entry trigger to buy calls was hit at $45.10 but CONN failed to close above this level. Today's high was $45.18. At this point I would wait for a rally past $45.20 before initiating new positions.

FYI: According to one source today the amount of short interest in CONN has dropped dramatically from 40% to 20% of the float. That's a big drop but still a lot of shorts that could panic on a breakout past the $45.00 level.

- Suggested Positions -

Long May $45 call (CONN1318E45) open $1.95

Entry on April 25 at $45.10
Average Daily Volume = 758 thousand
Listed on April 24 2013


Gilead Sciences - GILD - close: 51.43 change: +0.86

Stop Loss: 49.75
Target(s): 56.50
Current Option Gain/Loss: -21.6%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/25/13: GILD managed a decent bounce today (+1.7%) after a sharp, two-day pullback. We are not suggesting new positions at this time.

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: 38.71 change: -0.01

Stop Loss: 39.25
Target(s): 33.50
Current Option Gain/Loss: -44.1%
Time Frame: exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/25/13: AAWW underperformed the broader market today. Shares continue to drift sideways below short-term resistance at the $39.00 level. I am not suggesting new positions at this time.

- Suggested Positions -

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

04/24/13 new stop loss @ 39.25

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


Agrium Inc. - AGU - close: 92.34 change: -0.03

Stop Loss: 92.05
Target(s): 85.25
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on May 9th
New Positions: Yes, see below

Comments:
04/25/13: Hmm... now the story gets interesting. Yesterday the agricultural chemical stocks all rallied. The rally continued today for CF, POT, and MOS yet AGU did not participate. The stock churned sideways and closed virtually unchanged, lagging its peers. POT reported earnings this morning and beat on both the top and bottom line but guided lower.

Earlier Comments:
I am suggesting a trigger to buy AGU puts at $89.75. If triggered our target is $85.25. More aggressive traders could certainly aim lower. The Point & Figure chart for AGU is bearish with an $82 target.

NOTE: AGU could see some volatility when investors react to earnings from its rivals. POT is due to report earnings on April 25th. CF reports in early May.

Trigger @ 89.75

- Suggested Positions -

buy the May $90 PUT (AGU1318Q90)

Entry on April -- at $---.--
Average Daily Volume = 1.5 million
Listed on April 23 2013


S&P500 ETF - SPY - close: 158.52 change: +0.64

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:
04/25/13: The SPY is inching up toward its all-time high set two weeks ago, just under the $160 level. A failure under $160 will look like a bearish double top pattern.

Currently the plan is to use a trigger at $157.00 to buy put options on the SPY. Use a stop loss at $160.50. The target is $150.25.

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)

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



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 53.50 change: +0.80

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: +13.6% or Jan's: +6.8%
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