Editor's Note:

There was no follow through on yesterday's market pullback. The S&P 500 managed to erase yesterday's loss.

Our WYN trade was stopped out.


Current Portfolio:


CALL Play Updates

L Brands, Inc. - LTD - close: 50.35 change: +0.21

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:
05/02/13: LTD continues to churn sideways. Shares did add +0.4% but that lagged behind the major indices. 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: 64.66 change: -0.33

Stop Loss: 63.90
Target(s): 69.00
Current Option Gain/Loss: -25.8%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/02/13: Uh-oh! The action in ROST today was definitely disappointing. Shares fell toward $64 and short-term technical support at its 10-dma. Meanwhile the retail sector and the major market indices rebounded higher. That's not a great sign for our bullish play here. I am not suggesting new positions.

- 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: 89.55 change: -0.54

Stop Loss: 92.05
Target(s): 85.25
Current Option Gain/Loss: + 2.0%
Time Frame: Exit prior to earnings on May 9th
New Positions: see below

Comments:
05/02/13: AGU continues to underperform the broader market. Shares dipped to $87.92 intraday. The stock was bouncing back off its lows this morning but failed to close back above the $50.00 level, which is now round-number resistance.

Keep in mind that we plan to exit prior to the earnings report on May 9th. I would keep our position size small to limit our risk.

Earlier Comments:
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: 105.59 change: +1.05

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:
05/02/13: Biotech stocks followed the NASDAQ higher. AMGN rallied right at the open but shares did roll over midday. We are waiting on a breakdown to new relative lows.

Tuesday'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


Hittite Microwave Corp. - HITT - close: 54.87 change: +0.28

Stop Loss: 55.75
Target(s): 50.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/02/13: HITT eked out a +0.5% gain and spent most of the day drifting sideways.

I am suggesting a trigger to buy puts at $54.00. If triggered our target is $50.25.

Trigger @ 54.00

- Suggested Positions -

buy the Jun $55 PUT (HITT1322R55) current ask $2.35

Entry on May -- at $---.--
Average Daily Volume = 164 thousand
Listed on May 01 2013


S&P500 ETF - SPY - close: 159.75 change: +1.47

Stop Loss: 160.50
Target(s): 150.25
Current Option Gain/Loss: -21.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/02/13: Dip buyers rushed in to buy yesterday's pullback and the SPY managed to erase all of yesterday's -$1.40 decline. The key tomorrow will be the jobs report and how market participants choose to interpret the jobs data that comes out Friday morning before the opening bell. The jobs news will either push the SPY through resistance at 160 or spark another reversal lower.

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: 71.40 change: +0.95

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:
05/02/13: VMW is trying to bounce from support near $70.00 and managed a +1.3% gain.

We are waiting on 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)

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


Vertex Pharma. - VRTX - close: 77.72 change: +0.89

Stop Loss: 80.50
Target(s): 66.00
Current Option Gain/Loss: -23.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/02/13: VRTX opened lower at $76.30 and then bounced. More conservative traders may want to wait for a new relative low under $76.00 before initiating new put positions. Meanwhile nimble traders could look for a failed rally near $80.00 as an alternative entry point to buy puts.

Earlier Comments:
The old 2012 highs were near $65.00. This could be new support. We will aim for $66.00.

- Suggested Positions -

Long Jun $75 PUT (VRTX1322R75) entry $3.60

Entry on May 02 at $76.30
Average Daily Volume = 3.8 million
Listed on May 01 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 53.63 change: +1.34

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: + 4.5% or Jan's: + 1.7%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/02/13: The stock market's widespread bounce today helped CBI to a 2.5% gain. Shares remain inside the $52-54 trading range. That could change tomorrow. CBI reported earnings tonight, after the closing bell. Results were seven cents better than the 75-cent estimate. Revenues soared +87% from a year ago to $2.25 billion, which was also better than the estimate. Assuming the market doesn't reverse on disappointing jobs numbers tomorrow then we could see CBI breakout past $54.00.

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

Wyndham Worldwide Corp. - WYN - close: 61.37 change: +1.24

Stop Loss: 61.55
Target(s): 56.00
Current Option Gain/Loss: -60.7%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/02/13: The combination of an up market and positive earnings news from rival Marriott helped push WYN to a +2.0% gain. The intraday high was just enough to hit our stop loss at $61.55.

I am not convinced the correction is over and would not be surprised to see this bounce fail near $62 and its 50-dma.

- Suggested Positions -

May $60 PUT (WYN1318Q60) Entry $1.40 exit $0.55 (-60.7%)

05/02/13 stopped out

chart:

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