Editor's Note:

Wednesday delivered another round of new all-time highs for the S&P 500, Russell 2000, the Dow Transportation Average and the Dow Industrials.

Our WLP trade has been triggered.

Retailers could move tomorrow. Before the opening bell several major retailers will share their monthly same-store sales numbers.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 94.04 change: -0.27

Stop Loss: 92.40
Target(s): 99.00
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08/13: Hmmm... BA did not participate in the market's rally on Wednesday. Shares gapped open lower and spent the session hugging the $94.00 level. I would not be surprised to see shares dip toward short-term support at the rising 10-dma soon.

- Suggested Positions -

Long Jun $95 call (BA1322F95) entry $2.02

Entry on May 06 at $94.25
Average Daily Volume = 4.9 million
Listed on May 04 2013


HanesBrands Inc. - HBI - close: 50.45 change: -0.43

Stop Loss: 48.75
Target(s): 54.75
Current Option Gain/Loss: -17.5%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/08/13: HBI produced a small gap down at the open this morning. That should have helped our entry price on the option. The stock quickly filled the gap and then drifted lower throughout the session. HBI's failure to follow the market higher is a bit surprising but the $50.00 level should be new support.

NOTE: HBI is scheduled to begin trading ex-dividend on May 16th. The quarterly cash dividend should be 20 cents.

- Suggested Positions -

Long Jun $50 call (HBI1322F50) entry $2.00

Entry on May 08 at $50.72
Average Daily Volume = 1.4 million
Listed on May 07 2013


Lumber Liquidators - LL - close: 84.55 change: +0.35

Stop Loss: 79.45
Target(s): 89.50
Current Option Gain/Loss: -7.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08/13: LL fell toward $82.50 by lunch time. Yet traders bought the dip and shares rebounded to close in positive territory. LL looks poised to breakout past the $85.00 level soon.

Earlier Comments:
LLL had a lot of short interest prior to the company's earnings report and the good news sparked a short squeeze. The most recent data listed short interest at 27% of the small 26.2 million share float but that number may be out of date. If triggered our short-term target is $89.50. I would keep our position size small to limit our risk.

*Small Positions* - Suggested Positions -

Long Jun $85 call (LL1322F85) entry $4.10

05/07/13 triggered on gap open higher

Entry on May 07 at $84.35
Average Daily Volume = 761 thousand
Listed on May 06 2013


L Brands, Inc. - LTD - close: 53.21 change: +0.58

Stop Loss: 50.40
Target(s): 54.50
Current Option Gain/Loss: +59.2%
Time Frame: Exit PRIOR to earnings in mid-May
New Positions: see below

Comments:
05/08/13: Retailers continue to rally and LTD is outperforming many of its peers. Today saw shares gain another +1.1% and set another high.

Retail stocks could move tomorrow as several major retailers report their monthly same-store sales numbers.

Keep in mind we only have a couple of weeks, maybe less, before we need to exit prior to LTD's earnings report.

- Suggested Positions -

Long Jun $50 call (LTD1322F50) entry $2.26

05/07/13 new stop loss $ 50.40

Entry on May 03 at $50.85
Average Daily Volume = 2.7 million
Listed on April 27 2013


Ross Stores - ROST - close: 66.13 change: -0.37

Stop Loss: 64.15
Target(s): 69.00
Current Option Gain/Loss: + 3.2%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/08/13: ROST saw some minor profit taking today after yesterday's gains. Retail stocks could move tomorrow as several major retailers report their monthly same-store sales numbers.

Technical traders will note that the MACD on ROST's daily chart is rolling over and appears to have just turned negative, which is bearish. I am not suggesting new positions.

- Suggested Positions -

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

05/04/13 new stop loss @ 64.15
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


WellPoint Inc. - WLP - close: 75.05 change: +0.34

Stop Loss: 73.35
Target(s): 79.75
Current Option Gain/Loss: -5.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/08/13: Our brand new play on WLP has been triggered. The stock traded inside a $1.20 range and within that zone it was a choppy session. Traders bought the dip twice intraday. WLP managed to breakout past round-number resistance at $75.00. The stock hit our suggested entry point at $75.25. I would still consider new positions now.

- Suggested Positions -

Long Jun $75 call (WLP1322F75) entry $1.91

Entry on May 08 at $75.25
Average Daily Volume = 2.0 million
Listed on May 07 2013


PUT Play Updates

Amgen Inc. - AMGN - close: 105.07 change: +0.61

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:
05/08/13: AMGN managed to eke out a gain and actually outperform the NASDAQ composite and the biotech sector but shares have not broken the bearish trend of lower highs. We are still waiting on a breakdown.

Earlier Comments:
Last 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


Expedia Inc. - EXPE - close: 57.18 change: +0.11

Stop Loss: 60.25
Target(s): 1st target: 55.10, 2nd target 53.00
Current Option Gain/Loss: +13.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08/13: EXPE tried to bounce but traders sold the rally at $58 and its 10-dma. Overall EXPE looks poised to continue its decline. Keep in mind that shares of EXPE could be influenced by rival Priceline.com (PCLN). Friday morning could be volatile for the industry as the market reacts to PCLN's earnings report due out May 9th, after the closing bell.

Earlier Comments:
Please note I am listing two targets. Our conservative target is $55.10 since the $55 level has been support in the past. Our more aggressive target is $53.00. You choose which target you want to exit at. FYI: The Point & Figure chart for EXPE is bearish with a $55 target.

- Suggested Positions -

Long Jun $55 PUT (EXPE1322R55) entry $1.50

Entry on May 07 at $58.48
Average Daily Volume = 2.9 million
Listed on May 06 2013


Vertex Pharma. - VRTX - close: 75.43 change: -0.97

Stop Loss: 80.50
Target(s): 66.00
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/08/13: VRTX continues to see profit taking with a -1.2% decline today. The stock has found round-number support at $75.00 again. Shares bounced at this level last week. It could happen again but look for resistance at the short-term trend of lower highs. I am not suggesting new positions at this time.

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: 57.08 change: +0.58

Stop Loss: 51.90
Target(s): 62.50
Current Option Gain/Loss: July's: +77.2% or Jan's: +44.8%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/08/13: I am raising our stop loss to $51.90. More conservative investors may want to consider a stop closer to the $54.00 level, which should be short-term support if CBI retreats.

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*

05/08/13 new stop loss @ 51.90
*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