Current Portfolio:

CALL Play Updates

Cliffs Natural Resources - CLF - close 56.79 change -4.39 stop 54.75

Target(s): 58.95, 60.95, 65.90, 69.50
Key Support Areas: 54.75, 52.75
Key Resistance Areas: 58.95, 61.00, 66.00
Current Gain/Loss: -38%
Time Frame: 1 to 2 weeks
New Positions: Yes, with tight stop

This stock's extreme volatility is making difficult to get a read on what CLF will do which is why we initiated the play recommending small position size. I expected more of a bounce in the stock towards its 50-day SMA but today's hard reversal down makes me concerned. The stock gave back most of the gains from yesterday and our CALL position took a serious blow. If the stock can somehow find the strength to rally from here readers should consider exiting the position at $58.95 which is about where CLF reversed back down today. The next level would $60.05 which is just below yesterday's highs. Hanging on to the position and hoping it recovers further is not a smart strategy. All of these targets are listed above.

*Note: Please use small position size due the high volatility of this stock and political risks involved from the Australian government's proposed miner tax.*

Current Position: JUNE $65.00 CALL, entry at $3.10

Entry on 5/10/2010
Earnings Date 7/29/2010 (unconfirmed)
Average Daily Volume: 8.7 million
Listed on 5/8/2010

IMAX Corporation - IMAX - close 18.94 change +0.73 stop 17.15 *NEW*

Target(s): 19.25, 20.95
Key Support Areas: 18.30, 17.15, 16.95, 50-day SMA
Key Resistance Areas: 19.25, 19.90, 21.30
Current Gain/Loss: -4%
Time Frame: 1 to 2 weeks
New Positions: Aggressive traders only on a pullback

The bounce in IMAX continued today as the stock tacked on another +4.01%. Our position is nearing break-even and our first target of $19.25. The stock showed overall relative strength during the last hour of trading as IMAX was gaining when the broader market was declining. The stock is now approaching the double top I mentioned in last night's updates that was formed with the intraday highs of yesterday and last Thursday. The stock also closed just below its 20-day SMA which may act as resistance, especially if the market is under pressure tomorrow. I urge readers to be careful here with the stock's recent volatility and protect capital. I would like to raise our stop to $17.15 just in case IMAX reverses lower form here. If our target of $19.25 is hit our calls should be worth about $1.25, or a +18% gain. This would be a good area to lighten positions and tighten stops.

Current Position: JUNE $20.00 CALL, entry at $1.10

Entry on May 5th at $1.10
Earnings Date More than 2 months (unconfirmed)
Average Daily Volume: 1.9 million
Listed on May 4, 2010

JP Morgan - JPM - close 41.95 change +1.19 stop 39.50

Target(s): 43.75, 44.70, 46.50
Key Support Areas: 41.00, 40.50, 39.75
Key Resistance Areas: 43.75, 45.00, 47.00
Current Gain/Loss: -2%
Time Frame: 1 to 2 weeks
New Positions: Aggressive traders only

JPM traded down near our entry so we are long June $42 CALLS at $1.95, which is about where the CALLS closed at the end of the day. I am looking for JPM to bounce from here so we can book a quick profit. I've listed $43.75 as another target for a potential exit. This is just below the 20-day and 50-day SMA's. With the market volatility showing no signs of waning this is a logical place to exit the position. Our calls would gain about $1 from current levels which would represent a +50% gain. If JPM is weak in the coming days I expect $40.50 to hold as support. This is where an upward trend line that began on July 6, 2009 and horizontal support dating back to August 2009 converge.

Current Position: JUNE $42.00 CALL, entry at $1.95

Entry on May 11, 2010
Earnings Date July 15, 2010 (unconfirmed)
Average Daily Volume: 46 million
Listed on May 10, 2010

Target Corporation - TGT - close 56.28 change -0.39 stop 54.25 *NEW*

Target(s): 58.00
Key Support Areas: 56.50 (20-dma), 54.75, 52.30,
Key Resistance Areas: 56.75, 58.00
Current Gain/Loss: +32%
Time Frame: 1 to 2 weeks
New Positions: No

TGT traded in a relatively tight range today and closed down -0.69%. The stock has gained about +7% since the low on Friday morning. Our position has nice healthy gains of +31% and I urge readers to protect profits or simply exit the position. I would like to move our stop up to $54.25 to protect capital. If TGT trades below this level the stock will probably decline at least another $1 to $2 and we need to get out of the way. TGT closed just below its 20-day SMA today after closing above it yesterday. If the market is weak from here TGT could be kissing the 20-day SMA goodbye. Please protect profits on this position.

Current Position: JUNE $57.50 CALL, entry at $1.20

Entry on May 6, 2010 at $2.00
Earnings Date May 20, 2010 (unconfirmed)
Average Daily Volume: 5.2 million
Listed on May 5, 2010

PUT Play Updates

Range Resources Corp - RRC - close 47.67 change -0.62 stop 50.75

Target(s): 45.00, 44.00, 42.50
Key Support Areas: 46.00, 45.00, 43.30
Key Resistance Areas: 49.00, 50.00
Current Gain/Loss: +5%
Time Frame: 1 to 2 weeks
New Positions: Yes

RRC puts were initiated today per last night's updates. The stock is just below a bunch of congestion near $49.00 that I don't think it can overcome, especially if the market is weak. All of its daily SMA's are overhead along with several downtrend lines and broken uptrend lines. I really like the way this trade sets up but we can't get too confident. We're keeping a tight stop at $50.75 and will step aside if it trades up to this level. We are looking for a $2.50 to $5.00 move to the downside which will garner a nice profit on the trade if it happens. We chose further out of the money options than usual to reduce risk in the trade. *NOTE: Please use small position due to the volatility in this stock and the recent sell off in oil oversold.

Current Position: JUNE $42.50 PUT, entry at $0.95

Entry on 5/11/2010
Earnings Date 7/22/2010 (unconfirmed)
Average Daily Volume: 3.1 million
Listed on 5/8/2010

Sina Corporation - SINA - close 33.76 change -0.73 stop $36.80

Target(s): 33.25 (hit), 32.50, 30.50
Key Support Areas: 32.50, 30.50
Key Resistance Areas: 35.30, 36.00, 37.60
Current Gain/Loss: +24%
Time Frame: 1 week
New Positions: No

SINA continues to look vulnerable and closed -2.12% today. The stock remains below broken support near $35.00 and is also below all of its major daily and weekly SMA's. The 50-day SMA crossed below the 200-day SMA which is a bearish signal that confirms our outlook for this stock. I expect the overhead resistance and SMA's to hold. Our stop has been moved down to $36.80 to protect capital if SINA somehow manages to continue higher from here. SINA is approaching earnings on May 17th so we plan to be out of the trade on or before this date. I urge readers to book gains or tighten stops as SINA approaches $32.50. Our position is up +24% now and if our target at $32.50 is hit we should have gains of about +60%. Our target is just above the low from Friday.

Current Position: JUNE $35.00 PUT, entry at $2.20

Entry on May 4th at $2.20
Earnings Date May 17, 2010 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 1, 2010