Editor's Note:

The NASDAQ managed to breakout to new relative highs but the S&P 500 and the Dow Industrials are inching closer to resistance near their April highs.

CONN, GILD, and STMP were all stopped out today.
We closed AAWW at the closing bell.

We've also adjusted our entry point on the SPY.


Current Portfolio:


CALL Play Updates

L Brands, Inc. - LTD - close: 50.41 change: +0.47

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:
04/30/13: LTD was not immune to the market's swoon this morning but shares rebounded to a +0.9% gain. Today's move does not confirm yesterday's bearish reversal candlestick. We are still waiting for a breakout higher.

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: 66.07 change: +0.35

Stop Loss: 63.45
Target(s): 69.00
Current Option Gain/Loss: +12.9%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
04/30/13: ROST continues to show relative strength. The stock did not participate in the market's drip this morning. ROST merely consolidated sideways under the $66.00 level and managed a pop above this level late in the day. Investors may want to adjust their stop closer to the 10-dma, near $64.00.

- 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

Agrium Inc. - AGU - close: 91.67 change: -1.24

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:
04/30/13: AGU continues to underperform its peers. Shares spiked sharply lower this morning but bounced near support at $90.00. We are still waiting for a breakdown below support.

NOTE: I would keep our position size small to limit our risk.

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. CF reports in early May.

Trigger @ 89.75 *Small Positions*

- 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: 159.68 change: +0.38

Stop Loss: 160.50
Target(s): 150.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
04/30/13: Not surprisingly the SPY continues to inch higher toward round-number resistance at the 160 level (1600 on the S&P 500). Technically today is a new all-time closing high but it's interesting that the bulls can't push the index/etf past round-number resistance.

There is still a significant risk that the SPY reverses here with a bearish double top. Tomorrow morning I would expect the SPY to drift sideways as market participants wait for the end of the two-day FOMC meeting with the interest rate announcement around 2:00 p.m. ET. Look for the market to move after 2:00 p.m.

We are adjusting our entry trigger from $157.50 to $158.50. I am also removing the May put and replacing it with a June put. The May put expires in just over two weeks.

I want to reiterate that this is an aggressive entry point. The market's trend is still up. We are essentially speculating on a top at 1600 (160 on the SPY). Our stop loss remains at $160.50.

Earlier Comments:
Traders will want to strongly consider limiting your position size to reduce your exposure.

Trigger @ 158.50

- Suggested Positions -

buy the Jun $155 PUT (SPY1322R155)

04/30/13 adjust entry trigger to $158.50
replaced the May put with a June put as the suggested option.
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


VMware, Inc. - VMW - close: 70.50 change: -0.74

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:
04/30/13: VMW continues to underperform. The tech sector was breaking out to new relative highs and yet VMW was slipping closer and closer to a breakdown below support.

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 $2.40

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


Wyndham Worldwide Corp. - WYN - close: 60.08 change: -0.40

Stop Loss: 61.55
Target(s): 56.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Comments:
04/30/13: WYN is definitely flirting with a breakdown below support at $60.00. Shares dipped to $59.80 intraday. Yet our trigger to buy puts is at $59.75.

I find it interesting that shares of WYN did not react well to earnings news from Starwood Hotels (HOT). Starwood reported earnings this morning. HOT beat both the top and bottom line estimates. More importantly it raised its 2013 guidance. Shares of HOT surged +3.2% today. Yet WYN underperformed. Rival Marriott (MAR) is scheduled to report earnings tomorrow (May 1st) after the closing bell.

Earlier Comments:
I am suggesting a trigger to buy puts at $59.75. If triggered our target is $56.00. Nimble traders could aim for the simple or exponential 200-dma instead.

FYI: The Point & Figure chart for WYN is bearish with a $54 target.

Trigger @ 59.75

- Suggested Positions -

buy the May $60 PUT (WYN1318Q60) current ask $1.25

Entry on April -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 29 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 53.79 change: +0.90

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: +15.9% or Jan's: +6.8%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
04/30/13: CBI followed the market lower this morning but shares quickly rebounded. News that CBI had won another construction contract in China didn't hurt.

Remember, I am expecting this to be a volatile week both before and after CBI reports earnings on May 2nd, after the closing bell.

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

Conns Inc. - CONN - close: 43.31 change: -0.25

Stop Loss: 43.45
Target(s): 49.50
Current Option Gain/Loss: -66.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/30/13: CONN underperformed the market today with a -0.5% decline. The S&P 500 managed to rebound off its morning lows but CONN did not. Bulls could argue that CONN will bounce from its 10 or 20-dma, near its lows today. Unfortunately, our stop loss was hit at $43.45 this morning. Readers may want to keep an eye on this stock for a new breakout past $45.00.

- Suggested Positions -

May $45 call (CONN1318E45) open $1.95 exit $0.65 (-66.6%)

04/30/13 stopped out
04/29/13 CONN is underperforming and looks poised to hit our stop loss tomorrow

chart:

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


Gilead Sciences - GILD - close: 50.64 change: -0.45

Stop Loss: 49.95
Target(s): 56.50
Current Option Gain/Loss: -63.9%
Time Frame: Exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/30/13: GILD followed the S&P500 lower this morning and that was enough for GILD to breakdown below support near $50.00 and hit our stop loss at $49.95.

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

- Suggested Positions -

May $52.50 call (GILD1318e52.5) entry $1.94 exit $0.70 (-63.9%)

04/30/13 stopped out at $49.95
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

chart:

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


CLOSED BEARISH PLAYS

Atlas Air Worldwide - AAWW - close: 37.40 change: -0.44

Stop Loss: 39.25
Target(s): 33.50
Current Option Gain/Loss: -23.5%
Time Frame: exit PRIOR to earnings on May 2nd
New Positions: see below

Comments:
04/30/13: AAWW continues to underperform the market. Shares lost -1.1% today. Unfortunately we need to exit this trade early because earnings are coming up soon. Our plan was to exit today at the closing bell.

The ask on our option rallied back to our entry point at $1.70 but bid settled at $1.30.

- Suggested Positions -

May $37.50 PUT (AAWW1318Q37.5) entry $1.70 exit $1.30 (-23.5%)

04/30/13 planned exit
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

chart:

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


Stamps.com Inc. - STMP - close: 33.84 change: +0.82

Stop Loss: 34.05
Target(s): 30.00
Current Option Gain/Loss: -43.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/30/13: The rally in STMP continues. With the market's major indices still inching higher it looks like shorts decided to cover and STMP spiked past $34.00 before paring its gains. Our stop loss was hit at $34.05.

Earlier Comments:
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 -

May $35 PUT (STMP1318Q35) entry $2.65 exit $1.50 (-43.3%)

04/30/13 stopped out
04/29/13 triggered.

chart:

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