Editor's Note:

Good evening. We closed IMAX today as our target was hit. It appears the volatility was sucked out of our premium over the last few days so the gain is small, but it is still a gain. Please review the TGT play as I am suggesting we close this position tomorrow. We are currently up +92% on this position and I want to protect profits.

Please be cautious with your positions and use small position size to limit risk. This volatility is incredible and I feel like the rug could be pulled out from underneath the market at any moment. I have been listing multiple support/resistance areas I see on charts (both daily and intraday) to help guide you with potential entries and exits. I hope this helps when managiing positions. We have a good balance in the portfolio so please stay nimble and take profits when presented with the opportunity. Keeping your powder dry is also an option until more normalized conditions return.

Current Portfolio:

CALL Play Updates

Cliffs Natural Resources - CLF - close 57.34 change +0.68 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

CLF traded down to its intraday high from January 11th and reversed immediately. The stock also broke through intraday downtrend line. Hopefully CLF can get some legs from here, otherwise we need to exit this trade and protect capital. I expect the stock to gravitate towards its 50-day and 20-day SMA the recent volatility has me concerned. We are still down -38% since yesterday's shellacking. 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 on Monday. The next level would $60.95 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: Long 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

JP Morgan - JPM - close 41.69 change +0.14 stop 39.50

Target(s): 43.75, 44.70, 46.50
Key Support Areas: 41.00, 40.50, 39.75
Key Resistance Areas: 42.05, 43.75, 45.00, 47.00
Current Gain/Loss: -18%
Time Frame: 1 to 2 weeks
New Positions: Aggressive traders only

It took awhile to get JPM going today but it finally got going in the last 2 hours of trading. The result is a bottoming tail candlestick on its daily chart. JPM has entered an intraday resistance area and downtrend line. The price is coiling on the intraday charts and the gap higher on Monday was closed today, which right when JPM started to lift. The symmetrical triangle on the intraday charts should be resolved tomorrow. If it is to the upside we are looking for quick trip up to our first target of $43.25. I am looking for JPM to bounce from here so we can book a quick profit. $43.25 is just below the 20-day and 50-day SMA's which should provide resistance. With the market volatility showing no signs of waning this is a logical place to exit the position. 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 57.13 change +0.85 stop 55.48 *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: +92%
Time Frame: 1 to 2 weeks
New Positions: No

TGT had its highest close since April 29th today. We have now gained +92% on this trade. The stock is approaching a downtrend line from its April 26th highs and there is also overhead resistance. I urge traders to be careful here and suggest taking profits. Squeezing out another 85 cents on the trade will become stressful and may not happen. I would like to move up our stop again to $55.48 to protect capital. If TGT trades below this level the stock will probably fill the gap higher from Monday. A tighter stop could be placed at $56.48 which is just below the 20-day SMA. I suggest traders that do not have access to intraday trading place a stop at this level. For those that can monitor the position this is how I suggest exiting: wait for the first 5 or 15 minutes of trading to open, depending on your style. After the first candlestick is closed see how the next one closes. If the 2nd's close is below the 1st's traders may want to exit. If the 2nd's close is higher than the 1st's close traders probably want to trail their stop up. Another strategy would be to place one cancels the other (OCO) order and place sell orders below and above the current bid. Please protect profits on this position and email me with any questions.

Current Position: Long 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 48.05 change +0.38 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: -15%
Time Frame: 1 to 2 weeks
New Positions: Yes

RRC rallied almost up to yesterday's highs but didn't quite make bfore turning back lower. The stock also reversed right at its 20-day SMA and a downward trend line that began on April 26th. RRC remains below a bunch of congestion near $49.00 that I don't think it can overcome, especially if the market gets weaker from here. All of its daily SMA's are overhead along with several downtrend lines and broken uptrend lines. I continue to 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 35.11 change +1.35 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: -14%
Time Frame: 1 week
New Positions: Yes, but only as a quick trade

SINA rallied today and closed +4% today. After being in positive territory yesterday our position is now in the red. My technical comments are mostly the same. The stock remains below broken support near $35.30 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 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

Tempur-Pedic International - TPX - close 35.06 change +1.28 stop 36.25

Target(s): 31.50, 30.25
Key Support Areas: 33.25, 32.40, 31.30, 30.00
Key Resistance Areas: 34.25, 35.10
Current Gain/Loss: -25%
Time Frame: 1 to 2 weeks
New Positions:

Well, I guess all good things haven't come to an end just yet for TPX. The stock gapped higher at the open which triggered our entry to buy PUTS at $1.40. They are now worth about $1.05 and we have lost -25%. TPX proceeded to bust right through the downtrend line that started on April 23rd and closed +3.79% higher. Is this market really going to make more new highs after last weeks debacle? If it does we do not want to be involved with this stock. I see resistance right in the $35.20 area, which is where TPX reversed on April 30. Volume still looks bearish and signals distribution. The heaviest volume today by far was during the last 15 minutes of trading which is when the stock turned down. Overall volume was still lighter than recent down days. Lets see what happens tomorrow. If TPX is strong and the overall market continues its rally traders should consider exiting the position to protect capital. $35.52 is a logical place for a tighter stop. This is above today's high and the high on April 30th.

Current Position: JUNE $32.50 PUT, entry at $1.40

Entry on May 12, 2010
Earnings July 15, 2010 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 11, 2010