Editor's Note:

The U.S. market slipped lower this morning thanks to worries about Greece. Stocks managed to rebound on generally better than expected earnings results. The path of least resistance seems like it's higher.

We closed CAH this morning. IWM hit our new stop loss.


Current Portfolio:


CALL Play Updates

Advance Auto Parts - AAP - close: 151.51 change: -0.89

Stop Loss: 147.75
Target(s): To Be Determined
Current Option Gain/Loss: -26.3%
Average Daily Volume = 891 thousand
Entry on April 21 at $154.00
Listed on April 20, 2015
Time Frame: Exit PRIOR to earnings on May 21st
New Positions: see below

Comments:
04/22/15: AAP continued to sink this morning but found support at $150.50. More aggressive traders could use a rally past $152.00 as a potential entry point. I'm suggesting readers wait for a new rise past $154.00 instead.

Trade Description: April 20, 2015:
According to Sterne Agee analysts Ali Faghri and Michael Ward the combination of cheap gasoline and mother nature have created a bullish environment for auto part retailers.

Gasoline is off its early 2015 lows but it's still trading near four year lows. Today a gallon of gas is more than $1.00 less than the prior three years. Cheaper gas means more miles driven. The number of miles driven by Americans has risen 11 months in a row. The most recent data has hit levels not seen since 2007. Higher miles driven means more demand for replacement parts, maintenance, and repair work. That means more business for companies like AAP.

Meanwhile the weather has been a boon for auto parts makers. The harsh winter tends to reduce traffic but it's harder on vehicles and roads. The snow, gravel, and in some areas of the country road salt, increase wear and tear on your car. The freezing temperatures and precipitation generate more pot holes and road hazards, which also increase wear on your car. Now that we're into spring and the weather is improving we should see miles driven rise even further.

One company that should benefit is AAP. They're in the services sector with a chain of auto parts stores. According to the company, "Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. As of January 3, 2015 Advance operated 5,261 stores and 111 Worldpac branches and served approximately 1,325 independently-owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Advance employs approximately 73,000 Team Members."

It is worth pointing out that AAP's most recent earnings report was a disappointment. They reported Q4 earnings on February 12th. Earnings were up +104% to $1.37 per share. Revenues soared +48% to $2.09 billion. Yet in spite of these huge improvements AAP still missed analysts' expectations. It was the first earnings miss in more than two years. If that wasn't bad enough management then lowered their earnings and revenue guidance for 2015. Not surprisingly the stock was crushed the next day.

RBC Capital Markets analyst Scot Ciccarelli is still bullish on the stock. He noted that AAP's big acquisition of General Parts International last year has delivered cost synergies above expectations. Scot believes AAP offers "the best appreciation potential in the automotive aftermarket retail space."

Not everyone agrees. Daryl Boehringer, with Cleveland Research, believes that AAP is having trouble with its General Parts merger. According to Boehringer, he is, "more cautious on the near-term performance of the company as disruptions associated with the integration of GPI (entering the 'heavy-lifting' stage) appear to be having a fairly meaningful negative impact on the business... the large size and scope of the GPI integration will likely cause disruptions to AAP's business that make an upside earnings scenario less achievable."

If price is truth then the long-term trend favors the bulls. Shares of AAP did see a correction from $163 down to $143 but bounced off technical support at its rising 200-dma (and long-term trend line). Today shares are breaking through resistance at the 50-dma and look poised to keep climbing.

We believe this rebound will continue. However, we want to see a rally past the simple 100-dma, currently at $153.80. Tonight we're suggesting a trigger to buy calls at $154.00.

- Suggested Positions -

Long JUN $160 CALL (AAP150619C160) entry $3.80

04/21/15 triggered @ $154.00
Option Format: symbol-year-month-day-call-strike


Analog Devices, Inc. - ADI - close: 64.49 change: +0.12

Stop Loss: 62.85
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 2.0 million
Entry on April -- at $---.--
Listed on April 21, 2015
Time Frame: Exit PRIOR to earnings in late May
New Positions: Yes, see below

Comments:
04/22/15: ADI recovered from its morning dip and closed up +0.18% but that underperformed the NASDAQ's gain. Shares are still poised to breakout past $65.00 soon. There is no change from last night's new play description.

Trade Description: April 21, 2015:
ADI looks like a strong relative strength trade. The SOX semiconductor index is up +3.0% year to date. The NASDAQ composite is up +5.8%. Yet shares of ADI have surged +15.9% to hit new 14-year highs.

The company's products convert analog signals into digital information. These signal processing integrated circuits are used in just about everything from industrial equipment, automobiles, consumer equipment, and communication products.

According to the company, "Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the longest standing, highest growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 100,000 customers, representing virtually all types of electronic equipment. Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world."

Looking at ADI's earnings performance last year they tended to be relatively flat or slightly above analysts' estimates. Business seemed to be improving last quarter. ADI reported their Q1 results on February 17, 2015. Wall Street was expecting $0.61 a share on revenues of $760.5 million. ADI beat the estimates with a profit of $0.63 a share, a +18.8% improvement from a year ago. Revenues grew +23% to $772 million.

Management raised their dividend by 8% to $0.40 a share. They also raised their Q2 guidance above Wall Street expectations. Following this February earnings report the stock received a parade of price target upgrades. Wall Street now expects ADI earnings to rise from $1.98 a share in 2014 to $2.92 a share in 2015. According to Thomson Reuters estimates for 2016 are $3.23 a share (+11%) on revenues of $3.5 billion (+6%).

The stock surged to new highs again on March 30th. This was a reaction to a big upgrade from Barclays' analyst Blayne Curtis. Curtis said, "We believe Analog Devices has secured a win with a high accuracy converter to drive 3D touch in upcoming (Apple) iPhones and iPads." This design win will mean big business for ADI. It will also allow Apple introduce their new 3D/Force Tough technology. This allows users to do different tasks based on how much pressure they apply to their touch screen. Curtis also raised his price target on ADI from $55 to $70.

Technically shares of ADI are consolidating below resistance near $65.00 with a bullish pattern of higher lows. The point & figure chart is already bullish and forecasting a long-term target of $81.00. If ADI can breakout past $65.00 we want to jump on board. Tonight we're suggesting a trigger to buy calls at $65.25.

Trigger @ $65.25

- Suggested Positions -

Buy the JUN $65 CALL (ADI150619C65)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


Ctrip.com - CTRP - close: 66.14 change: +0.98

Stop Loss: 61.30
Target(s): To Be Determined
Current Option Gain/Loss: +6.4%
Average Daily Volume = 2.9 million
Entry on April 21 at $65.15
Listed on April 14, 2015
Time Frame: 3 to 5 weeks, Exit PRIOR to earnings in May
New Positions: see below

Comments:
04/22/15: The rally continues for CTRP with shares outperforming the U.S. market again thanks to a +1.5% Gain. I am not suggesting new positions at current levels.

Trade Description: April 14, 2015;
The Chinese economy grew +7.4% last year. Today estimates are suggesting +7.0% for 2015, the slowest pace in 24 years. One area that is outperforming the broader economy is travel. Travel is expected to grow twice as fast. Leading the way is CTRP, China's largest online travel provider.

CTRP is part of the services sector. According to the company, "Ctrip.com International, Ltd. is a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. It is the largest online consolidator of accommodations and transportation tickets in China in terms of transaction volume. Ctrip aggregates comprehensive travel related information and offers its services through an advanced transaction and service platform consisting of its mobile apps, Internet websites and centralized, toll-free, 24-hour customer service center. Ctrip enables business and leisure travelers to make informed and cost-effective bookings. It also helps customers book vacation packages and guided tours. In addition, through its corporate travel management services, Ctrip helps corporate clients effectively manage their travel requirements. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China."

The company's most recent earnings report sparked quite a reaction. CTRP reported its Q4 and fiscal year 2014 results on March 19th. Analysts were expecting a loss of $0.09 a share on revenues of $306.29 million. CTRP delivered a loss of $0.11. Investors ignored the miss thanks to revenues rising +33% to $308.37 million.

James Liang, Chairman of the Board and Chief Executive Officer of Ctrip, commented on his company's results saying, "In the fourth quarter of 2014, our main business lines demonstrated strong momentum. Accommodation reservation and transportation ticketing services reached 53% and 102% year-over-year volume growth respectively. Total GMV of packaged tour business reached RMB13 billion in 2014. Our new initiatives have propelled the expansion in our market share. Cumulative mobile app downloads reached nearly 600 million by the end of the year, growing over 70% from the previous quarter. Over 70% of transactions were made through mobile platforms during the Chinese New Year holiday. 2015 could be another exciting year. We will continue to focus on technology, service quality and efficiency, product comprehensiveness and price competitiveness, to create greater value for our customers, our partners, our employees and ultimately, our investors."

What really caught the market's attention was CTRP's guidance. The company expects Q1 revenues to surge +40% to +50%. That would be the highest growth rate since 2010 and above Wall Street's estimates for +30%. Mr. Liang said that CTRP owns about 5% of the travel market in China. Longer-term he believes CTRP could have about 20% of the market but it will be a much bigger market with travel expected to grow +500%.

Shares of CTRP gapped open higher from $46.00 to $55.00 and hit $60 a few days after its earnings report. Today shares are consolidating sideways below resistance near $65.00. Traders just bought the dip at its rising 10-dma this morning.

We want to hop on board if CTRP breaks through $65.00. Tonight we're listing an entry point to buy calls at $65.15.

- Suggested Positions -

Long MAY $65 CALL (CTRP150515C65) entry $3.29

04/21/15 triggered @ 65.15
Option Format: symbol-year-month-day-call-strike


G-III Apparel Group, Ltd. - GIII - close: 116.32 change: -1.15

Stop Loss: 114.75
Target(s): To Be Determined
Current Option Gain/Loss: -48.3%
Average Daily Volume = 207 thousand
Entry on April 09 at $116.77
Listed on April 08, 2015
Time Frame: Exit PRIOR to the 2:1 split on May 4th
New Positions: Yes, see below

Comments:
04/22/15: I'm worried about GIII. Shares underperformed today with a -0.97% decline. If shares breakdown under short-term support near $115.00 it could signal a drop toward $110.00.

Tonight we'll move the stop loss up to $114.75.

I'm not suggesting new positions at current levels. We want to exit prior to the stock split on May 4th.

Trade Description: April 8, 2015:
GIII has been showing relative strength and could deliver a strong pre-stock split rally. The company is in the consumer goods sector. They make apparel.

The company describes itself as, "G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, women's suits, women’s performance wear, footwear, luggage, women's handbags, small leather goods and cold weather accessories under licensed brands, owned brands and private label brands. G-III sells swimwear, resort wear, and related accessories under our own Vilebrequin brand. G-III also sells outerwear, dresses, and performance wear under our own Andrew Marc and Marc New York brands, and has licensed these brands to select third parties in certain product categories.

G-III has fashion licenses under the Calvin Klein, Kenneth Cole, Cole Haan, Guess?, Tommy Hilfiger, Jones New York, Jessica Simpson, Vince Camuto, Ivanka Trump, Ellen Tracy, Kensie, Levi's and Dockers brands. Through our team sports business, we have licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Touch by Alyssa Milano and more than 100 U.S. colleges and universities. Our other owned brands include Bass, G.H. Bass, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. G-III also operates retail stores under the Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names."

Looking at GIII's earnings performance last year the company has beaten Wall Street's bottom line earnings estimates four quarters in a row and usually by a wide margin. GIII also beat analysts' revenue estimates three out of the last four quarters. When GIII reported its Q3 results back in December they raised guidance above Wall Street expectations.

Their most recent report was their Q4 results on March 24th. Earnings were up +58% from a year ago to $0.98 a share. That was 15 cents above estimates. For their fiscal year 2015, which ended on January 31st, GIII said adjusted earnings were up +21% while revenues were up +23% from a year ago.

In their earnings press release Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, "Fiscal 2015 was another strong year of sales and profit growth for G-III. We drove strong performances across our portfolio of businesses, solidified our market position, and successfully executed across a range of strategic initiatives, including the integration and repositioning of the G.H. Bass business we acquired in the fourth quarter of last year. We are pleased to have achieved another record year for both net sales and net income per share."

The stock did see a little profit taking when management offered conservative guidance but traders bought the dip a couple of days later. Now the stock is hitting new all-time highs.

Yesterday morning, April 7th, GIII announced a 2-for-1 stock split. The shareholder record date is April 20th. GIII should begin trading post-split on Monday, May 4th. Shares look like they could produce a strong pre-split run up. We want to hop on board for the next three weeks and exit prior to the split date. Tonight we're suggesting a trigger to buy calls at $116.65.

- Suggested Positions -

Long MAY $120 CALL (GIII150515C120) entry $2.90

04/22/15 new stop @ 114.75
04/13/15 new stop @ 113.85
04/09/15 triggered @ 116.77, on a midday gap higher
Suggested entry was $116.65
Option Format: symbol-year-month-day-call-strike


Global Payments Inc. - GPN - close: 101.87 change: +0.24

Stop Loss: 98.25
Target(s): To Be Determined
Current Option Gain/Loss: +12.3%
Average Daily Volume = 589 thousand
Entry on April 21 at $101.05
Listed on April 18, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
04/22/15: GPN kept the rally going with a +0.2% gain, which means another closing high. It was a little bit of a volatile morning for GPN. Investors might want to look for a dip in the $100-101 zone as a new entry point.

Trade Description: April 18, 2015:
GPN is in the services sector. They provide money transfers and electronic payment solutions.

According to the company website, "Global Payments Inc. (GPN) is a leading worldwide provider of payment technology services that delivers innovative solutions driven by customer needs globally. Our partnerships, technologies and employee expertise enable us to provide a broad range of products and services that allow our customers to accept all payment types across a variety of distribution channels in many markets around the world. Headquartered in Atlanta, Georgia with more than 4,300 employees worldwide, Global Payments is a Fortune 1000 Company with merchants and partners in 29 countries throughout North America, Europe, the Asia-Pacific region and Brazil."

The company has been consistently delivering strong earnings growth. GPN has beaten Wall Street's expectations and guided higher the last three quarters in a row. Their most recent report was April 8th when GPN delivered their 2015 Q3 results. Earnings were up +18.7% to $1.14 a share. Revenues were up +8% to $665 million. Growth was driven by strong performances in the U.S. and their Asia-Pacific operations.

Management raised their forecast again. They see 2015 earnings in the $4.77-4.84 range, which would be +8% to +10% growth. They're forecasting 2015 revenues in the $2.75-2.80 billion range or +16% to +18% growth.

GPN management is also shareholder friendly and has been significantly boosting their stock buy back program. They recently announced an accelerated share repurchase program up to $100 million.

The stock has rallied on the strong earnings results and buyback news. Today GPN is hovering near all-time highs around psychological resistance at the $100 level. It was impressive that GPN did not participate in the market's widespread sell-off on Friday. We want to be ready to hop on board if GPN can rally past resistance at $100.

Tonight we're suggesting a trigger to buy calls at $101.05.

- Suggested Positions -

Long AUG $105 CALL (GPN150821C105) entry $2.85

04/21/15 triggered @ 101.05
Option Format: symbol-year-month-day-call-strike




PUT Play Updates

Big Lots Inc. - BIG - close: 47.15 change: +0.11

Stop Loss: 50.05
Target(s): To Be Determined
Current Option Gain/Loss: -31.6%
Average Daily Volume = 1.1 million
Entry on April 14 at $46.85
Listed on April 13, 2015
Time Frame: Exit PRIOR to May option expiration
New Positions: see below

Comments:
04/22/15: BIG is still trying to bounce and managed a +0.2% gain. The stock looks like it could challenge the $48.00 area or its 50-dma soon.

No new positions at this time.

Trade Description: April 13, 2015:
Momentum for this retail name is clearly rolling over. According to the company's latest press release, "Big Lots Inc. (BIG) is a unique, non-traditional discount retailer operating 1,460 Big Lots stores in 48 states with product assortments in the merchandise categories of Food, Consumables, Furniture & Home Decor, Seasonal, Soft Home, Hard Home, and Electronics & Accessories. Our vision is to be recognized for providing an outstanding shopping experience for our customers, valuing and developing our associates, and creating growth for our shareholders."

The company's earnings results have been mixed. The huge sell-off on December 5th was a reaction to its Q3 earnings. BIG lost $0.06 per share, which was worse than expected and revenues were essentially flat. The fourth quarter was significantly better with BIG delivering a profit of $1.76 per share compared to estimates of $1.75. Revenues were up +1.4% and were in-line with estimates of $1.59 billion. Comparable store sales were up to +2.9% in the fourth quarter.

Unfortunately, management guided lower for Q1 and the rest of their fiscal 2016. Their forecast of $2.75-2.90 in earnings is below Wall Street's $2.96 estimate. Comparable store sales are going to be in the low single digits. The company tried to soften the bad news by raising their dividend and adding to their stock buyback program.

The post-earnings rally didn't last. Shares of BIG have rolled over and now the path of least resistance is lower. The $46.00 level, along with the simple 200-dma, is potential support but we are expecting this weakness in BIG to accelerate. Tonight we are listing a trigger to buy puts at $46.85 with an initial stop loss at $50.05.

- Suggested Positions -

Long MAY $47.50 PUT (BIG150515P4750) entry $1.90

04/14/15 triggered @ $46.85
Option Format: symbol-year-month-day-call-strike


Jack in the Box, Inc. - JACK - close: 91.32 change: -0.27

Stop Loss: 95.05
Target(s): To Be Determined
Current Option Gain/Loss: -15.0%
Average Daily Volume = 564 thousand
Entry on April 17 at $91.88
Listed on April 16, 2015
Time Frame: 2 to 4 weeks, exit PRIOR to earnings in mid May
New Positions: see below

Comments:
04/22/15: The relative weakness in JACK continues. Shares dipped to $90.29 before paring its losses. The $90.00 level and the mid-February highs near $88.50 are both potential support.

No new positions at this time.

Trade Description: April 16, 2015:
It's a burger-eat-burger world out there in the fast-food business. Jack in the Box is small fries compared to its larger rivals like McDonalds (36,258 locations) and Wendy's (6,515 locations). Let's not forget heavy weights like Taco Bell, Burger King, Subway, Dairy Queen, and a handful of pizza chains. JACK only has about 2,200 restaurants but it also has a secret weapon and that is the Qdoba Mexican Grill restaurant with about 600 locations. Chipotle Mexican Grill has almost 1,800 locations.

Some of that intense competition being felt by McDonalds and Chipotle Mexican Grill is coming from Jack in the Box and its Qdoba brand, which is growing sharply. A majority of their Qdoba franchisees own multiple stores with 10, 20 even 40 stores common. Enterprising business owners don't open additional stores if the original stores are not working. To have so many owners with high numbers of stores suggests the franchise is consistently profitable.

To be profitable they need solid customer traffic, good food and decent margins. Shares of JACK have been one of the best performers on the S&P over the last couple of years because the company has been posting solid earnings and growth.

With analysts cutting earnings estimates for McDonalds and Chipotle because of competition in the sector it makes sense to look at what has happened at JACK. Over the last quarter and the last year not a single analyst has lowered their earnings estimates for JACK. According to Zacks there has been a noticeable trend of raising estimates. JACK is expected to grow +16% to +20% this year and in 2016. JACK has beaten earnings by an average of 6% over the last four quarters.

Because of the drop in gasoline prices consumers have more money in their pocket. Some of that money is going to end up in the cash registers at these fast food outlets. Customers are also trending towards healthier foods and away from the mass produced burgers and fries at McDonalds. Did you know there are 19 ingredients in McDonalds fries? Surely you didn't think they were just potatoes and grease? Restaurants like JACK and Chipotle are capitalizing on the healthy food craze. JACK store sales rose an average of 5.7% over the last three quarters but Qdoba sales rose +13% for the year and +7.7% in Q4. Zacks rates JACK as a strong buy.

The company plans to open 15 new Jack in the Box stores in 2015. They're also cashing in on Qdoba's success and planning to open 50 to 60 new Qdoba locations. That compares to just 12 new Jacks and 38 new Qdobas in 2014.

It's also worth noting that JACK has an active share buyback program and they reduced the share count by 10% over the last four quarters. Earnings growth rose +20% in Q3 after three years of consecutive earnings growth of more than 30%.

JACK's most recent earnings report was February 17th, when they reported their 2015 Q1 results. Analysts were expecting a profit of $0.87 a share on revenues of $461.2 million. JACK delivered earnings of $0.93 a share. That's a +24% improvement from a year ago. Revenues were up +4.1% to $468.6 million, above estimates. Their operating margins improved 1% to 19.3%.

Management expects same-store sales at Jack in the Box to surge from +0.9% a year ago to +5% to +7% in Q2. Qdoba same-store sales are forecasted to be in the +7% to +9% range. The company raised full-year 2015 guidance to $2.85-2.97 a share compared to Wall Street estimates of $2.84.

Everything I just wrote about JACK is bullish. The company is growing. They're profitable and seem to be stealing market share from its rivals. Yet right now the market doesn't care. Shares of JACK have been underperforming the major indices since they peaked on March 25th at round-number resistance near the $100.00 level. There was a technical bounce off its 50-dma several days ago but that has faded.

Traders seem to be selling the rallies in JACK now. Today's display of relative weakness (-0.6%) also left JACK below technical support at its 50-dma for the first time since August 2014.

I'm longer-term bullish on JACK. Bloomberg just published an article this week on how consumer spending at restaurants and bars was more than spending on groceries for the first time ever in March 2015. The data suggests that younger, millennial consumers are more willing to spend on eating out. There is a bug in this data. The Commerce Department is not counting companies like Wal-mart, Target, or Costco as grocery stores even though they all have significant grocery businesses.

On a short-term basis JACK looks weak. The point & figure chart just turned bearish this month. We are suggesting a trigger to buy puts at $91.90.

- Suggested Positions -

Long MAY $90 PUT (JACK150515P90) entry $3.00

04/17/15 triggered on gap down at $91.88, trigger was $91.90
Option Format: symbol-year-month-day-call-strike


Orbital ATK, Inc. - OA - close: 74.50 change: +0.12

Stop Loss: 76.55
Target(s): To Be Determined
Current Option Gain/Loss: -23.4%
Average Daily Volume = n/a
Entry on April 16 at $74.25
Listed on April 15, 2015
Time Frame: 3 to 4 weeks, exit PRIOR to earnings in mid May
New Positions: see below

Comments:
04/22/15: Traders bought the dip on OA this morning and the stock managed to close in positive territory. Odds are growing we're going to see OA challenge resistance near $75.00 and potentially the $76.00 level.

No new positions at this time.

Trade Description: April 15, 2015:
On a long-term basis many of the defense and aerospace companies have been juggernauts with huge gains over the last couple of years. That's in spite of lower U.S. military budgets. Yet on a short-term basis the group is underperforming.

OA is part of the industrial goods sector. The company is a merger between Orbital Sciences and ATK. ATK spun off its small firearms business into a new company called Vista Outdoor. According to OA, "Orbital ATK is a global leader in aerospace and defense technologies. The company designs, builds and delivers space, defense and aviation systems for customers around the world, both as a prime contractor and merchant supplier. Its main products include launch vehicles and related propulsion systems; missile products, subsystems and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and advanced aerospace structures. Headquartered in Dulles, Virginia, Orbital ATK employs more than 12,000 people in 20 states across the United States and in several international locations."

I am longer-term bullish on the defense and aerospace stocks. Yet shorter-term they are clearly underperforming the major indices. The S&P 500 and the Dow Industrials are both nearing their all-time highs. The NASDAQ is trading near its 15-year highs and the small cap Russell 2000 just hit a new record high today. Yet the major defense-related names have been trending lower the last couple of weeks.

Technically OA has been developing a trend of lower highs. Today the stock just broke down under key, round-number support at $75.00. If this pullback continues we could see OA drop toward the $69-70 zone.

Tonight we're suggesting a trigger to buy puts at $74.25. We'll try and limit our risk with an initial stop loss at $76.55. Earnings are coming up in mid May. There is no official date set. We will plan on exiting prior to their earnings announcement.

- Suggested Positions -

Long MAY $75 PUT (OA150515P75) entry $3.20

04/16/15 triggered @ 74.25
Option Format: symbol-year-month-day-call-strike



CLOSED BULLISH PLAYS

Cardinal Health, Inc. - CAH - close: 91.50 change: +1.15

Stop Loss: 87.75
Target(s): To Be Determined
Current Option Gain/Loss: -35.3%
Average Daily Volume = 1.7 million
Entry on March 30 at $90.55
Listed on March 28, 2015
Time Frame: Exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/22/15: Last night we decide to cut CAH lose and exit this trade early. Naturally shares choose to surge the next day and outperform the market with a +1.2% gain. CAH is on the verge of breaking through resistance near $91.50. Such a breakout would be bullish but I would not hold over the earnings report on April 30th.

Our plan was to exit this morning.

- Suggested Positions -

MAY $90 CALL (CAH150515C90) entry $2.86 exit $1.85 (-35.3%)

04/22/15 planned exit
04/21/15 prepare to exit tomorrow morning
03/30/15 triggered @ 90.55
Option Format: symbol-year-month-day-call-strike

chart:


iShares Russell 2000 ETF - IWM - close: 125.71 change: +0.19

Stop Loss: 124.85
Target(s): To Be Determined
Current Option Gain/Loss: -7.2%
Average Daily Volume = 32.7 million
Entry on March 27 at $123.05
Listed on March 26, 2015
Time Frame: Exit prior to May option expiration
New Positions: see below

Comments:
04/22/15: The stock market's widespread dip this morning was enough to stop out our IWM trade. The ETF fell to $124.47 and we had move our stop to $124.85 last night. It's worth noting that the bullish trend of higher lows is still in place.

- Suggested Positions -

MAY $125 CALL (IWM150515C125) entry $1.94 exit $1.80 (-7.2%)

04/22/15 stopped out
04/21/15 new stop @ 124.85
04/07/15 new stop @ 122.85
04/04/15 new stop @ 121.65
03/27/15 triggered @ 123.05
Option Format: symbol-year-month-day-call-strike

chart: