Editor's Note:

The stock market is retreating from resistance as expected. The question now is if bears can produce any follow through lower.

Bearish plays AGU, SPY, and WYN were triggered today.


Current Portfolio:


CALL Play Updates

L Brands, Inc. - LTD - close: 50.14 change: -0.27

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:
05/01/13: LTD gave back about -0.5% in a relatively quiet session. That was better than the -0.9% drop in the S&P 500. We're still waiting on a move 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: 64.99 change: -1.08

Stop Loss: 63.90
Target(s): 69.00
Current Option Gain/Loss: -16.1%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/01/13: ROST underperformed the market with a -1.6% decline. Shares paused at round-number support near $65.00. If this pullback continues we should look for ROST to test its simple 10-dma near $64.25. I am raising our stop loss up to $63.90.

- Suggested Positions -

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

05/01/13 new stop loss @ 63.90

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: 90.09 change: -1.58

Stop Loss: 92.05
Target(s): 85.25
Current Option Gain/Loss: -10.0%
Time Frame: Exit prior to earnings on May 9th
New Positions: see below

Comments:
05/01/13: AGU continues to weaken and shares are flirting with a bearish breakdown under support at $90.00. The stock did hit our entry trigger at $89.75 near its lows for the day. If you missed the entry point I would wait for another drop under $89.70 before initiating positions. Keep in mind that we plan to exit prior to the earnings report on May 9th.

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 on May 8th.

Trigger @ 89.75 *Small Positions*

- Suggested Positions -

buy the May $90 PUT (AGU1318Q90) entry $2.45

Entry on May 01 at $89.75
Average Daily Volume = 1.5 million
Listed on April 23 2013


Amgen Inc. - AMGN - close: 104.54 change: +0.33

Stop Loss: 106.75
Target(s): 96.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/01/13: Shares of AMGN spiked higher this morning on bullish comments from Goldman Sachs. Yet traders sold the rally and shares pared their gains.

Yesterday's low was $103.85. More aggressive traders could buy puts now but I am suggesting a trigger to buy puts at $103.65. If triggered our target is $96.00. However, more conservative traders may want to exit near $100 since it's possible the $100 level could prove to be round-number support.

Trigger @ 103.65

- Suggested Positions -

buy the Jun $100 PUT (AMGN1322R100)

Entry on May -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 30 2013


S&P500 ETF - SPY - close: 158.28 change: -1.40

Stop Loss: 160.50
Target(s): 150.25
Current Option Gain/Loss: +3.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/01/13: The SPY is retreating from resistance near 160 as expected. The ETF hit our new trigger at $158.50. If you missed the entry point we would still buy puts at current levels.

I would not be surprised to see a short-term bounce off the rising 40-dma or 50-dma but our target is $150.25. More conservative traders may want to consider exiting early near $154.00 instead.

Earlier Comments:
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.

- Suggested Positions -

Long Jun $155 PUT (SPY1322R155) entry $2.15

05/01/13 trigger @ 158.50
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 May 01 at $158.50
Average Daily Volume = 130 million
Listed on April 18 2013


VMware, Inc. - VMW - close: 70.45 change: -0.05

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:
05/01/13: VMW is coiling for a breakdown lower. 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 $2.30

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


Wyndham Worldwide Corp. - WYN - close: 60.13 change: +0.05

Stop Loss: 61.55
Target(s): 56.00
Current Option Gain/Loss: -21.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/01/13: Continued weakness this morning pushed WYN below support near $60.00 and shares hit our trigger at $59.75. The stock did manage a rebound. Closing positive on a day most of the market was in negative territory is a show of relative strength. Readers who missed the entry point may want to wait for a new drop below $59.75 before considering new bearish positions.

I cautioned readers yesterday that WYN's rival Marriott (MAR) would report earnings tonight. MAR beat estimates on both the top and bottom line. MAR isn't seeing a lot of movement after hours but this news could buoy both MAR and WYN tomorrow morning.

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

- Suggested Positions -

Long May $60 PUT (WYN1318Q60) Entry $1.40

Entry on May 01 at $59.75
Average Daily Volume = 1.4 million
Listed on April 29 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 52.29 change: -1.50

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: -13.6% or Jan's: -12.0%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/01/13: I warned readers that CBI would likely see increased volatility this week. The stock gave back -2.7% today. If you look at an intraday chart CBI has been churning sideways inside the $52-54 zone the last several days. Today's pullback might suggest a breakdown from this range soon. The simple 100-dma could offer some support again and if that fails then look for support near $50.00.

CBI is scheduled to report earnings tomorrow, 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