Editor's Note:

The S&P 500 index has rallied toward its early April highs and resistance near 1600. Will it breakout or will it reverse?

We closed our AMT trade today.
STMP was triggered.


Current Portfolio:


CALL Play Updates

Conns Inc. - CONN - close: 43.56 change: -0.79

Stop Loss: 43.45
Target(s): 49.50
Current Option Gain/Loss: -48.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/29/13: Our CONN trade may not be long for this world. The stock failed at resistance near $45.00 again this morning and proceeded to fall to a -1.78% decline. The intraday low was $43.46. Our stop loss just happens to be $43.45. Odds are pretty high we are going to see CONN hit our stop tomorrow. I am not suggesting new positions.

Earlier Comments:
CONN has a high amount of short interest and a small float. A breakout past resistance could spark another short squeeze.

- Suggested Positions -

Long May $45 call (CONN1318E45) open $1.95

04/29/13 CONN is underperforming and looks poised to hit our stop loss tomorrow

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


Gilead Sciences - GILD - close: 51.09 change: -0.29

Stop Loss: 49.95
Target(s): 56.50
Current Option Gain/Loss: -40.7%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/29/13: I am surprised that shares of GILD were not weaker today. It was disclosed that the FDA has sent GILD a rejection letter for two potential HIV treatments. The two drugs are already part of a four-in-one pill treatment but GILD wants to market them separately. The FDA is asking for more information before they can approve it.

Meanwhile shares of GILD drifted lower and look poised to test support near $50.00 again. We only have a couple of days left and readers may want to exit early now.

I am suggesting we exit our GILD positions on May 1st, at the closing bell, assuming shares don't hit our stop loss first.

Earlier Comments:
I do consider this a more aggressive entry point.

- Suggested Positions -

Long May $52.50 call (GILD1318e52.5) entry $1.94

04/29/13 prepare to exit on May 1st, at the close
04/27/13 new stop loss @ 49.95
Prepare to exit on April 30th at the closing bell

Entry on April 15 at $52.25
Average Daily Volume = 11.7 million
Listed on April 13 2013


L Brands, Inc. - LTD - close: 49.94 change: -0.55

Stop Loss: 49.40
Target(s): 54.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings in mid-May
New Positions: Yes, see below

Comments:
04/29/13: There was no follow through on last week's rally in LTD today. Shares pulled back with a -1.0% decline, underperforming the broader market and the XRT retail ETF. Technically today's session has created a bearish engulfing candlestick reversal pattern.

At the moment I am suggesting a trigger to buy calls at $50.85. If triggered our target is $54.50 but we do not want to hold over the mid-May earnings report. This trade may only last a couple of weeks. FYI: The Point & Figure chart for LTD is bullish with a $68 target.

Trigger @ 50.85

- Suggested Positions -

buy the Jun $50 call (LTD1322F50)

Entry on April -- at $---.--
Average Daily Volume = 2.7 million
Listed on April 27 2013


Ross Stores - ROST - close: 65.72 change: +0.60

Stop Loss: 63.45
Target(s): 69.00
Current Option Gain/Loss: + 3.2%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
04/29/13: ROST managed to keep the rally going and added another +0.9% on Monday. Shares might be considered very short-term overbought. Do not be surprised to see a dip back toward the $65-64 area.

- Suggested Positions -

Long Jun $67.50 call (ROST1322F67.5) entry $1.55

Entry on April 26 at $65.25
Average Daily Volume = 2.3 million
Listed on April 25 2013


PUT Play Updates

Atlas Air Worldwide - AAWW - close: 37.65 change: -1.06

Stop Loss: 39.25
Target(s): 33.50
Current Option Gain/Loss: -29.4%
Time Frame: exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/29/13: AAWW tried to rally this morning but traders sold into strength and shares pared their gains. AAWW looks poised to break down further but we're running out of time. The company is scheduled to report earnings on May 2nd, before the opening bell. I am suggesting we plan on closing positions on April 30th (Tuesday) at the closing bell. I am not suggesting new positions at this time.

- Suggested Positions -

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

04/27/13 only a couple of days left!
prepare to exit on April 30th at the closing bell
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: 92.91 change: +1.78

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:
04/29/13: Nearly all of the agricultural chemical stocks were up today. AGU continues to lag behind its peers but we may need to abandon any short-term bearish plans on the stock. If AGU can produce any follow through on today's bounce we'll likely drop it.

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: 159.30 change: +1.06

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:
04/29/13: This is it! The moment of truth. Does the S&P 500 (and the SPY) breakout past their all-time highs set two weeks ago? Or does the market reverse and form a bearish double top?

We are adjusting our entry point to buy puts on the SPY from $157.00 to $157.50. If triggered our stop remains $160.50. The target is $150.25.

Earlier Comments:
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 @ 157.50

- Suggested Positions -

buy the May $155 PUT (SPY1318Q155)

04/29/13 adjust entry trigger to $157.50
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


Stamps.com Inc. - STMP - close: 33.02 change: -0.12

Stop Loss: 34.05
Target(s): 30.00
Current Option Gain/Loss: -11.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/29/13: Our new trade on STMP has been triggered at $32.50. Shares spiked lower at the open but spent most of the day drifting higher before paring gains in the last couple of hours. We have a stop loss at $34.05. More conservative traders could use a stop closer to Friday's high.

This is a higher-risk, aggressive trade that STMP will see some profit taking after its +41% rally in four days. We want to keep our position size small to limit risk.

*Small Positions* - Suggested Positions -

Long May $35 PUT (STMP1318Q35) entry $2.65

04/29/13 triggered.

Entry on April 29 at $32.50
Average Daily Volume = 235 thousand
Listed on April 27 2013


VMware, Inc. - VMW - close: 71.24 change: -0.22

Stop Loss: 72.85
Target(s): 62.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/29/13: VMW continues to underperform the broader market. I don't see any changes from my weekend comments.

I am suggesting a trigger to buy puts at $69.75. If triggered our target is $62.50. More aggressive traders could aim lower. The Point & Figure chart for VMW is bearish with a $42 target.

Trigger @ 69.75

- Suggested Positions -

buy the Jun $67.50 PUT (VMW1322R67.5) current ask $2.20

Entry on April -- at $---.--
Average Daily Volume = 2.5 million
Listed on April 27 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 52.89 change: -0.39

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: + 0.0% or Jan's: -1.7%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
04/29/13: Remember, I am expecting this to be a volatile week both before and after CBI reports earnings on May 2nd, after the closing bell. Today is looks like CBI is retreating from short-term resistance at the $54.00 level.

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 BULLISH PLAYS

American Tower Corp. - AMT - close: 83.04 change: +0.07

Stop Loss: 80.95
Target(s): 84.50
Current Option Gain/Loss: + 60.9%
Time Frame: Exit prior to earnings on May 1st
New Positions: see below

Comments:
04/29/13: Monday was a quiet session for AMT. The stock churned sideways and posted a minor bounce after Friday's pullback. Our plan was to exit positions at the closing bell to avoid holding over the earnings report.

- Suggested Positions -

May$80 call (AMT1318E80) entry $2.05 exit $3.30 (+60.9%)

04/29/13 scheduled exit at the close
04/27/13 new stop loss @ 80.95, new target at $84.50
prepare to exit on Monday, April 29th, at the closing bell
04/25/13 new stop loss @ 80.40, readers may want to exit now since our option has doubled (+100%).

chart:

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