Editor's Note:

The S&P 500 index snapped a five-day winning streak with a minor decline on Thursday.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 94.57 change: +0.57

Stop Loss: 92.40
Target(s): 99.00
Current Option Gain/Loss: +17.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09/13: BA managed to outperform the major indices with a +0.6% gain. The stock started Thursday strong thanks to some positive analyst comments. Yet BA is still having trouble trying to get past round-number resistance near $95.00.

- 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: 49.96 change: -0.49

Stop Loss: 48.75
Target(s): 54.75
Current Option Gain/Loss: -35.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09/13: HBI drifted lower toward round-number support at $50.00 and short-term technical support at its 10-dma. Depending on your risk tolerance traders could use this dip as a new entry point or wait for a bounce.

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: 85.22 change: +0.67

Stop Loss: 79.45
Target(s): 89.50
Current Option Gain/Loss: +0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09/13: LL continues to show relative strength and outperformed the major indices with a +0.79% gain today. More conservative traders may want to raise their stop loss closer to the rising 10-dma.

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 The most recent data listed short interest at 27% of the small 26.2 million share float but that number may be out of date.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: 52.08 change: -1.13

Stop Loss: 50.40
Target(s): 54.50
Current Option Gain/Loss: +23.8%
Time Frame: Exit PRIOR to earnings in mid-May
New Positions: see below

Comments:
05/09/13: Hmm... LTD saw some profit taking today. Analysts were expecting LTD to report +4.8% April same-store sales growth. The company said growth only came in at +2%. Management did raise its Q1 earnings guidance from a range of $0.40-0.45 to $0.46 cents a share. The disappointing same-store sales news sparked LTD to gap open lower and end the session with a -2.1% decline. I am not suggesting new positions at this time.

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: 65.73 change: -0.40

Stop Loss: 64.70
Target(s): 69.00
Current Option Gain/Loss: - 9.6%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/09/13: It seems that investors were in a mood to sell no matter what the news was. ROST announced bullish news today but that didn't stop shares from sinking. Analysts were expecting April same-store sales growth of +5.8%. ROST delivered +7.0% same-store sales growth. Overall sales growth was +12% and management raised their Q1 earnings estimates from $1.00-1.04 range to $1.06-1.07 range. Normally, news that a company was raising earnings estimates would be met with buying pressure on the stock. Instead ROST drifted lower toward short-term technical support at its 10-dma and posted a -0.6% decline.

I am raising our stop loss to $64.70. I am not suggesting new positions.

- Suggested Positions -

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

05/09/13 new stop loss @ 64.70
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: 75.39 change: +0.34

Stop Loss: 73.35
Target(s): 79.75
Current Option Gain/Loss: +4.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/09/13: WLP continues to drift higher and managed to outperform the major market indices with a +0.45% gain. I don't see any changes from my prior comments.

- 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: 104.56 change: -0.51

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:
05/09/13: AMGN is still churning sideways between $104.00 and $105.50. If the market pulls back I am expecting AMGN to breakdown below support near $104.00.

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) current ask $1.62

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


Allergan Inc. - AGN - close: 103.15 change: -0.16

Stop Loss: 105.30
Target(s): 98.50
Current Option Gain/Loss: -2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09/13: Thursday was a rather quiet day for shares of AGN. I would still consider new bearish put positions at current levels.

Earlier Comments:
There is potential support at $100.00, at the 200-dma near $97.85, and at the May 1st low of $96.77. I am suggesting we aim for $98.50.

- Suggested Positions -

Long Jun $100 PUT (AGN1322R100) entry $1.85

Entry on May 09 at $103.46
Average Daily Volume = 2.4 million
Listed on May 08 2013


Expedia Inc. - EXPE - close: 55.97 change: -1.21

Stop Loss: 60.25
Target(s): 1st target: 55.10, 2nd target 53.00
Current Option Gain/Loss: +40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09/13: EXPE continues to sink and shares gave back -2.1% today. The stock is nearing potential support at $55.00. It will be interesting to see how the stock performs tomorrow. After the closing bell tonight EXPE's rival Priceline.com (PCLN) reported earnings of $5.76 a share on revenues of $1.3 billion. Wall Street was only expecting a profit of $5.29 on revenues of $1.28 billion. That was a solid report. Yet PCLN management lowered their Q2 profit and sales guidance below Wall Street estimates. Shares of PCLN are down about -$20.00 after hours and trading near $715 a share. That should put pressure on EXPE tomorrow.

Don't forget we have two exit targets for you to choose from with EXPE.

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: 76.78 change: +1.35

Stop Loss: 80.50
Target(s): 66.00
Current Option Gain/Loss: - 2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/09/13: VRTX is not cooperating with us. Shares bucked the market's weakness today with a bounce from support near $75.00. The stock tacked on +1.7%. 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: 57.25 change: +0.17

Stop Loss: 51.90
Target(s): 62.50
Current Option Gain/Loss: July's: +81.8% or Jan's: +44.8%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/09/13: Positive analyst comments on CBI helped shares gap open higher this morning. CBI briefly traded above the $58.00 level before paring its gain.

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