10:40am (EST)

Amazon.com (AMZN, $77.95, down $0.10) opened higher this morning after an upgrade but has given back most of its gains since. I mentioned in the Weekly Wrap last night to set limit prices of $1.30 on the May 90 calls (ZQNER, $1.43, up $0.05). The options opened at $1.43 but it appears the shares have lost momentum as the Dow is down over 200 points.

If Amazon keeps falling, lower the entry price to $1.10 or less and wait for a rebound.

We had limit prices of $1.10 on the Yahoo (YHOO, $13.78, down $0.61) May 14 puts (YHQQP, $1.27, up $0.23) so those should have been filled.

Hopefully we aren’t catching a falling knife but Olin (OLN, $14.88, down $1.09) is down 7%. We were watching the May 15 calls (OLNEC, $0.90, down $0.80) and the May 17.50 calls (OLNEW, $0.25, down $0.30) and both options have hit our targeted entry prices of $1.20 and 30 cents.

Dendreon (DNDN, $19.66, up $1.67) continues to do well.

Rick Rouse