Editor's Note:

The market's widespread profit taking continues as investors use disappointing economic data as an excuse to sell.

Our plan was to exit the JNPR trade on Monday, Jan. 27th to lock in gains. MTW hit our target on Friday. Jan. 31st.

CBI was a watch list candidate that hit our entry trigger last week and hit our stop loss today (Feb. 3rd).


Closed Plays


JNPR was closed on Monday. Jan. 27th to lock in gains.

MTW hit our bullish target on Jan. 31st.

AIG, CBI, DD, FLR, HD, WYN hit our stop loss.



Play Updates


Alaska Air Group - ALK - close: 79.65 (as of Jan. 31, 2014)

Comments:
02/03/14: ALK is a watch list candidate that has graduated to our active play list. The plan was to buy calls on a dip at $75.25. ALK met that requirement today. The market's widespread sell-off on Monday, Feb. 3rd has produced a -4.9% plunge in shares of ALK and they're testing round-number support at $75.00.

The relative weakness today is a bit troubling. We have a stop loss at $72.75 but more conservative investors may want to use a higher stop loss. Based on today's weakness I'd probably want to see a bounce back above $76.00 or $76.25 before initiating new positions.

FYI: The point & figure chart is bullish with a $101 target.

- Suggested Positions -
FEB 03, 2014 - entry price on ALK @ 75.25, option @ 7.90
symbol: ALK1517a80 2015 JAN $80 call - current bid/ask $7.30/ 7.90

02/03/14 triggered @ 75.25

Chart of ALK:

Current Target: $95.00
Current Stop loss: 72.75
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/26/14


Avago Technologies - AVGO - close: 54.64 (as of Jan. 31, 2014)

Comments:
02/03/14: AVGO spent last week consolidating sideways in the $54-55 zone. The simple 10-dma has turned into overhead resistance. As of midday Monday, Feb. 3rd, the stock tagged resistance at the 10-dma and then reversed with the stock market's widespread decline. Shares look headed for the $52.00 area or worse.

I am suggesting an immediate exit (now or Tuesday morning Feb. 4th) to lock in gains.

- Suggested Positions -
NOV 11, 2013 - entry price on AVGO @ 44.44, option @ 3.60
symbol: AVGO1517a50 2015 JAN $50 call - current bid/ask $7.50/ 9.10

02/03/14 prepare to exit immediately (Tuesday morning, Feb. 4th)
01/19/14 new stop loss @ 49.75
More conservative investors may want to lock in profits now with the bid on our option at $9.30
01/12/14 new stop loss @ 47.25
12/29/13 new stop loss @ 45.90
12/22/13 new stop loss @ 44.90, adjust exit target to $58.50
12/08/13 new stop loss @ 42.40
...see earlier updates for older comments...

Current Target: $58.50
Current Stop loss: 49.75
Play Entered on: 11/11/13
Originally listed on the Watch List: 09/22/13


Bank of America - BAC - close: 16.75 (as of Jan. 31, 2014)

Comments:
02/03/14: BAC actually managed a bounce last week after traders bought the dip near support in the $16.00 area. Unfortunately the stock appears to have developed a short-term trend of lower highs. Odds are good we will see BAC retest the $16 area and its 50-dma.

I am moving our stop loss up to $15.35. More conservative investors may want to just exit now to lock in gains.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $2.60/2.65

02/03/14 move stop loss to $15.35, investors may want to just exit now to lock in potential gains
01/19/14 adjust exit target to $19.50 (from 18.00)
01/12/14 don't be surprised to see some post-earnings profit taking
01/05/14 new stop loss @ 14.75
11/24/13 new stop loss @ 13.70
11/17/13 new stop loss @ 13.35
07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
07/07/13 new stop loss @ 11.35
05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target: BAC @ $19.50 for 2015 call
Current Stop loss: 15.35
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


BB&T Corp. - BBT - close: 37.41 (as of Jan. 31, 2014)

Comments:
02/03/14: The profit taking in BBT continued last week as shares followed the market lower. The prior week I suggested BBT might find support near $37.00. Unfortunately, as of Monday morning, Feb. 4th, BBT has plunged through $37 and is now trading below its simple 50-dma.

More conservative investors may want to exit now to avoid a loss or raise their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.07/1.15

02/03/14 conservative investors may want to exit now to avoid a potential loss (or raise their stop loss)
01/12/14 new stop loss @ 34.90

Current Target: BBT @ 42.50
Current Stop loss: 34.90
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Deer & Co - DE - close: 85.96 (as of Jan. 31, 2014)

Comments:
02/03/14: DE spent last week churning sideways in the $85-87 zone. It looked like DE would actually hold support near 485 and its 100-dma and 200-dma. Yet as of Monday, Feb. 3rd, the stock has pierced its 200-dma. So far the low today is $84.60. Another 20 cents and DE will hit our stop loss at $84.40. I am not suggesting new positions at this time.

FYI: DE is scheduled to report earnings on February 12th.

- Suggested Positions -
DEC 10, 2013 - entry price on DE @ 87.26, option @ 5.85*
symbol: DE1517a90 2015 JAN $90 call - current bid/ask $4.15/4.30

01/05/14 new stop loss @ 84.40
12/22/13 new stop loss @ 83.75
12/10/13 trade opens. DE @ 87.26
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/09/13 DE closed @ 87.20, above our suggested entry of a close above $86.25

Current Target: DE @ 98.50
Current Stop loss: 84.40
Play Entered on: 12/10/13
Originally listed on the Watch List: 12/08/13


The Walt Disney Co. - DIS - close: 72.61 (as of Jan. 31, 2014)

Comments:
02/03/14: With DIS's bounce from last Wednesday, Jan. 29th, it looked like the stock's four-week correction from its January highs might be over. Unfortunately for the bulls the bounce in DIS stalled at its simple 10-dma. Monday, Feb. 3rd's market sell-off has pushed DIS to a new relative low. The stock is nearing what should be support near $70.00. Our stop loss is currently at $69.40.

I do expect DIS to see some volatility (up or down) following its earnings report later this week.

FYI: DIS is scheduled to report earnings on February 5th, after the closing bell.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $4.65/4.75

01/05/14 new stop loss @ 69.40
12/29/13 new stop loss @ 67.40
12/08/13 new stop loss @ 65.75
11/24/13 new stop loss @ 64.75

Current Target: DIS @ 84.00
Current Stop loss: 69.40
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Delphi Automotive - DLPH - close: 60.89 (as of Jan. 31, 2014)

Comments:
02/03/14: DLPH spent last week hovering around support near $60 and testing its 50-dma. Yet each bounce kept stalling at short-term resistance at its 10-dma. Today's move, Monday, Feb. 3rd, doesn't look so hot with another failed rally at the 10-dma and what currently looks like a bearish engulfing candlestick reversal pattern.

Tomorrow could be volatile. DLPH is due to report earnings tomorrow morning (Feb. 4th).

FYI: DLPH is scheduled to report earnings on February 4th. Investors may also want to note that DLPH will begin trading ex-dividend on February 13, 2014. The quarterly cash dividend should be 25 cents.

- Suggested Positions -
JAN 24, 2014 - entry price on DLPH @ 60.25, option @ 4.49
symbol: DLPH1517a65 2015 JAN $65 call - current bid/ask $3.80/4.50

Current Target: DLPH @ 75.00
Current Stop loss: 57.25
Play Entered on: 01/24/14
Originally listed on the Watch List: 01/19/14


Foot Locker, Inc. - FL - close: 38.60 (as of Jan. 31, 2014)

Comments:
02/03/14: Shares of FL appeared to find a bottom last week with shares churning sideways in the $37.50-39.00 zone. Today's market drop (Monday, Feb. 3rd) looks pretty ugly and FL is underperforming with a -3.5% decline (so far today). Our stop loss is at $36.75.

The bottom of the gap from November 21, 2013 is $36.75. The simple 100-dma is at $36.76. Either of these could offer potential support. I am adjusting our stop loss down from $36.75 to $36.49. I am not suggesting new positions at this time.

Earlier Comments:
Our long-term target is $48.00 but more aggressive traders could aim higher since the point & figure chart is forecasting a $60 target.

- Suggested Positions -
JAN 17, 2014 - entry price on FL @ 39.25, option @ 3.85*
symbol: FL1517a40 2015 JAN $40 call - current bid/ask $2.50/3.10

02/03/14 adjust stop loss to $36.49
01/17/14 triggered @ 39.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: exit when FL hits $48.00
Current Stop loss: 36.49
Play Entered on: 01/17/14
Originally listed on the Watch List: 12/29/13


HollyFrontier Corp. - HFC - close: 46.30 (as of Jan. 31, 2014)

Comments:
02/03/14: It's not looking good for our HFC trade. After peaking in early January with a failed rally near $50.00 the stock has developed a bearish trend of lower highs and lower lows. More conservative investors may want to abandon ship. Today, Monday, Feb. 3rd, has HFC flirting with a breakdown below its converging 100-dma and 200-dma. The intraday low this morning was $44.92. Our stop loss is at $44.75. HFC could hit our stop before the day is over. I am not suggesting new positions at this time.

Earlier Comments:
NOTE: The options for HFC have changed. Due to a 50-cent special dividend the option strikes have all been adjusted down by 50 cents. Our listed option strike 2015 January $49.50 has become $49.00.

- Suggested Positions -
NOV 26, 2013 - entry price on HFC @ 47.17, option @ 5.00*
symbol: HFC1517a49 2015 JAN $49 call - current bid/ask $3.60/4.10

01/12/14 new stop loss @ 44.75
12/15/13 new stop loss @ 43.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: HFC @ 59.00
Current Stop loss: 44.75
Play Entered on: 11/26/13
Originally listed on the Watch List: 11/24/13


Honeywell Intl. - HON - close: 91.23 (as of Jan. 31, 2014)

Comments:
02/03/14: HON displayed some relative strength last week. The stock managed to tag a new all-time high near $92.00. More conservative investors might want to consider moving their stop loss closer to technical support at the rising 100-dma (currently near $87.35).

I am not suggesting new positions at this time.

Earlier Comments:
Our initial plan was to keep our position size small to limit risk.

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 9.25/ 9.35

12/29/13 new stop loss @ 84.85
12/22/13 adjust the exit target to $98.00
11/24/13 new stop loss @ 83.75
11/17/13 new stop loss @ 82.75
11/10/13 new stop loss @ 81.75
10/20/13 new stop loss @ 79.40
10/13/13 investors might want to take profits on our 2015 calls, which have doubled in value.
...please see earlier newsletter for prior comments...

Current Target:$ 98.00
Current Stop loss: 84.85
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Helmerich & Payne, Inc. - HP - close: 88.04 (as of Jan. 31, 2014)

Comments:
02/03/14: Shares of HP were also showing relative strength last week. The stock garnered bullish comments from two different analysts. HP was giving a $100 price target. The stock is currently flirting with new highs.

The simple 50-dma has risen to $82.57. I am raising our stop loss to $82.45. More conservative investors may want to raise their stop higher. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 05, 2013 - entry price on HP @ 81.00, option @ 5.60*
symbol: HP1517a90 2015 JAN $90 call - current bid/ask $ 7.00/7.80

02/03/14 new stop loss @ 82.45
01/26/14 new stop loss @ 81.40
01/12/14 new stop loss @ 79.65
12/29/13 new stop loss @ 77.45
12/05/13 trade opens with HP opening at $81.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/04/13 HP closes at $80.97, above our suggested trigger @ 80.25
11/17/13 strategy change: Wait for HP to close above $80.25 and then buy calls the next day with a stop loss at $74.75. Our new long-term target is $95.00. New option strike at 2015 $90 call

Current Target:$ 95.00
Current Stop loss: 81.40
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


Hospira Inc. - HSP - close: 44.01 (as of Jan. 31, 2014)

Comments:
02/03/14: HSP was a watch list candidate. We have been waiting for shares to pullback toward support. The plan was to buy calls on a dip at $43.00. HSP almost hit our entry point on Friday but the intraday low was only $43.06. The market's widespread sell-off today (Monday, Feb. 3rd) has pushed HSP to our suggested entry point at $43.00. Broken resistance in the $42-43 zone should be significant support. A pullback to this area can be used as a new bullish entry point.

Earlier Comments:
Our long-term target is $49.75. You may want to aim higher since the point & figure chart is forecasting at $69 target but I do see potential resistance at $50.00.

FYI: Earnings are scheduled for February 12th.

- Suggested Positions -
FEB 03, 2014 - entry price on HSP @ 43.00, option @ 4.60
symbol: HSP1517a45 2015 JAN $45 call - current bid/ask $ 3.70/4.60

02/03/14 triggered at $43.00

Chart of HSP:

Current Target:$ 49.75
Current Stop loss: 39.90
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/26/14


Illinois Tool Works Inc. - ITW - close: 78.87 (as of Jan. 31, 2014)

Comments:
02/03/14: Shares of ITW were upgraded last week but the news didn't help much. ITW spent last week consolidating sideways in the $78-80 zone. Unfortunately, today (Feb.3rd) we are seeing ITW breakdown below support at $78. The low today so far is $76.97. Our stop loss is at $76.85. I am not suggesting new positions at this time.

- Suggested Positions -
JAN 24, 2014 - entry price on ITW @ 80.66, option @ 3.65*
symbol: ITW1517a85 2015 JAN $85 call - current bid/ask $2.65/2.75

01/24/14 trade opened on gap down at $80.66. Trigger was $80.75
*option entry price is an estimate since the option did not trade at the time our play was opened.
01/12/14 adjust the buy-the-dip entry point to $80.75 (from 80.25)

Current Target: ITW @ 95.00
Current Stop loss: 76.85
Play Entered on: 01/24/14
Originally listed on the Watch List: 12/29/13


JPMorgan Chase & Co. - JPM - close: 55.36 (as of Jan. 31, 2014)

Comments:
02/03/14: JPM delivered a similar performance last week with shares consolidating sideways. Look for additional support near $54.00 and its 200-dma. Currently our stop is at $52.90. More conservative investors may want to raise their stop given the market's recent weakness.

- Suggested Positions -
(2014 call exit on Monday, December 23rd)
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - exit $3.05 (+90.6%)

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 4.40/4.50

01/26/14 a dip or a bounce near $54.00 could be used as a new bullish entry point
01/05/14 new stop loss @ 52.90
12/23/13 planned exit for 2014 calls, option @ +90.6%
12/22/13 prepare to exit the 2014 calls on Monday morning, Dec. 23rd
12/01/13 adjust exit target for the 2014 calls to exit when JPM hits $59.50
(see older updates for earlier comments)
Current Target: exit 2015 calls when JPM hits $64.00
Current Stop loss: 52.90
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Level 3 Communications - LVLT - close: 32.10 (as of Jan. 31, 2014)

Comments:
02/03/14: Last week saw LVLT pullback toward technical support at its 50-dma. Today (Feb. 3rd) we see LVLT break lower and move toward $31.00, which as broken resistance should be support.

Keep in mind that LVLT could be volatile this week as the market reacts to earnings, which are expected on February 5th, before the opening bell.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 4.70/5.40

01/12/14 new stop loss @ 29.75
12/29/13 new stop loss @ 28.75
12/08/13 new stop loss @ 27.75
11/24/13 new stop loss @ 26.75
*option entry price is an estimate since the option did not trade at the time our play was opened.
Current Target: $39.00
Current Stop loss: 29.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


Motorola Solutions - MSI - close: 63.80 (as of Jan. 31, 2014)

Comments:
02/03/14: Our MSI trade is not performing as expected. The oversold bounce has failed. Today (Feb. 3rd) we see MSI breaking down below its simple 100-dma. I suspect shares are headed for the $60 area. Prepare to exit immediately on Tuesday, Feb. 4th at the opening bell.

- Suggested Positions -
DEC 23, 2013 - entry price on MSI @ 66.75, option @ 4.10
symbol: MSI1517a70 2015 JAN $70 call - current bid/ask $ 2.41/2.53

- or -

DEC 23, 2013 - entry price on MSI @ 66.75, option @ 5.10
symbol: MSI1615a75 2016 JAN $75 call - current bid/ask $ 2.93/3.60

02/03/14 prepare to exit immediate (on Tues. Feb 4th)
01/19/14 adjust stop to $62.45
01/12/14 new stop loss @ 62.75
Current Target: Exit when MSI trades in the $80-90 zone.
Current Stop loss: 62.45
Play Entered on: 12/23/13
Originally listed on the Watch List: 12/08/13


QUALCOMM Inc. - QCOM - close: 74.22 (as of Jan. 31, 2014)

Comments:
02/03/14: QCOM continued to see volatility last week. Shares broke support near $72 but traders bought the dip near its 100-dma. Fortunately the stock has rebounded. Honestly I am surprised that QCOM did not see more weakness. Earnings came out on January 29th and QCOM's results were disappointing. They missed the bottom line number by 8 cents and missed the revenue number. Management then guided lower for the second quarter but they raised guidance for all of 2014. Investors must be hopeful that QCOM will deliver on that full-year guidance.

Currently our stop loss is at $69.45. More conservative investors may want to raise their stop closer to last week's low near $71.00. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.05/5.15

01/19/14 new stop loss @ 69.45
12/08/13 new stop loss @ 67.75
11/15/13 trade opens. QCOM @ 71.34
11/14/13 QCOM closes above entry trigger (above 70.50)

Current Target: $85.00
Current Stop loss: 69.45
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 71.12 (as of Jan. 31, 2014)

Comments:
02/03/14: We have had SBUX on our watch list since early January. Shares have been correcting lower and we've been waiting for a decline toward $70.00. Today's market sell-off (Monday, Feb. 3rd) has pushed SBUX below the $70.00 mark. Our buy-the-dip trigger was hit at $70.50. Unfortunately the stock did not bounce at the $70.00 mark. Currently, with less than 90 minutes to go on Monday, SBUX is down -2.9% and trading near $69.00. At the moment I would not launch new positions until we see SBUX close back above the $70.00 level.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $4.05/4.20

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $6.05/6.50

02/03/14 triggered at $70.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of SBUX:

Current Target: $82.00
Current Stop loss: 67.00
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/05/14


SanDisk - SNDK - close: 69.55 (as of Jan. 31, 2014)

Comments:
02/03/14: SNDK closed virtually unchanged for the week on Friday. The bad news is that shares are underperforming today (Monday, Feb. 3rd) with a -3.2% plunge to technical support at its 100-dma. The intraday low (so far) has been $67.17. Our stop loss is at $67.00. I am not suggesting new positions at this time.

Earlier Comments:
The plan was to start with small positions. Our long-term target is $90. Coincidentally the point & figure chart is forecasting at $90 target.

- Suggested (small) Positions -
JAN 13, 2014 - entry price on SNDK @ 72.51, option @ 5.80
symbol: SNDK1517a80 2015 JAN $80 call - current bid/ask $ 3.65/3.80

01/13/14 trade opens. SNDK @ 72.51

Current Target: $90.00
Current Stop loss: 67.00
Play Entered on: 01/13/14
Originally listed in the New Plays 01/12/14


Wells Fargo & Co. - WFC - close: 45.34 (as of Jan. 31, 2014)

Comments:
02/03/14: WFC only lost about 15 cents after churning sideways in the $45.50-46.25 zone all week. That is changing today. The market's broad-based sell-off is pushing WFC below short-term support near $45.00 and its 50-dma. I would look for WFC to find additional support in the $43-44 area. I am not suggesting new positions at this time.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.27/1.31

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 2.56/2.91

01/19/14 new stop loss @ 42.90
12/26/13 trade opens with WFC @ $45.50
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/24/13 WFC closed @ 45.39, above our trigger at $45.25

Current Target: Exit WFC hits $54.50
Current Stop loss: 42.90
Play Entered on: 12/26/13
Originally listed on the Watch List: 12/08/13



CLOSED Plays


American Intl. Group - AIG - close: 47.96 (Friday, 01/31/2014)

Comments:
02/03/14: The stock market's sell-off on Monday, January 27th was too much for AIG and the stock pierced its 200-dma. Shares also hit our stop loss at $47.75. The stock followed the late January decline with a bounce but the $49.00 level has turned into new overhead resistance. It looks like AIG may have formed a large (bearish) double top pattern with the peaks in October and the lower high now in January 2014.

- Suggested Positions -
(exit 2014 calls on January 9, 2014)
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - exit $2.04 (-18.4%)

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - exit $2.10 (-48.1%)

01/27/14 stopped out at $47.75
01/26/14 AIG is plunging and poised to hit our stop loss at 47.75
01/09/14 AIG hit our $52.00 exit target for the 2014 calls
01/05/14 adjust the exit for the 2014 calls down to $52.00
12/29/13 new stop loss @ 47.75
10/20/13 new stop loss @ 46.40
10/13/13 exit strategy update: exit 2014 calls at $54.50
adjust the exit target for the 2015 calls to $59.00
09/15/13 new stop loss @ 44.65
08/04/13 new stop loss @ 43.75
...please see earlier updates for more history...

Chart of AIG:

Current Target:$ exit 2014 calls @ 52.00, exit 2015 calls @ 59.00
Current Stop loss: 47.75
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Chicago Bridge & Iron - CBI - close: 74.99 (as of Jan. 31, 2014)

Comments:
02/03/14: CBI was on our watch list. The plan was to buy calls on a dip at $74.50. The stock market's sell-off on Monday, Jan. 27th was enough to push CBI below the $74.00 level, triggering our play. CBI managed a bit of an oversold bounce. Unfortunately as of Monday, Feb. 3rd, that bounce has been completely erased. CBI is significantly underperforming the market and hit our stop loss at $72.25 today (02/03/2014).

- Suggested Positions -
JAN 27, 2014 - entry price on CBI @ 74.50, option @ 6.14
symbol: CBI1517a80 2015 JAN $80 call - exit $4.90* (-20.1%)

02/03/14 stopped out @ 72.25
*option exit price is an estimate since the option did not trade at the time our play was closed.
01/27/14 triggered on a dip at $74.50
01/26/14 adjust entry strategy to buy calls on a dip at $74.50, move the stop loss to $72.25. Adjust the option strike to 2015 Jan $80 call
01/19/14 adjust entry strategy. Wait for a close above $84.00, move the stop loss to $79.40
01/12/14 move the trigger to $78.50 (from 78.25)
01/05/14 adjust the buy-the-dip trigger to $78.25, from $80.25
adjust the stop loss to $74.45 from $74.75.

Chart of CBI
Current Target:
Current Stop loss: 72.25
Play Entered on: 01/27/14
Originally listed on the Watch List: 12/22/13


E.I. du Pont - DD - close: 61.01 (as of Jan. 31, 2014)

Comments:
02/03/14: Last week's market decline pushed DD below the $60.00 level. Shares hit our new stop loss at $59.75. If this stock closes under its 200-dma I would expect a drop into the $55-52 area.

- Suggested Positions -
(2014 calls closed on December 30th, 2013)
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - exit $0.69 (-6.7%)

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - exit $2.10 (-33.3%)

01/27/14 stopped out @ 59.75
01/19/14 new stop loss @ 59.75
12/30/13 planned exit for 2014 calls.
12/29/13 prepare to exit 2014 calls on Monday, Dec. 30th at the open.
12/08/13 new stop loss @ 58.90
10/25/13 trade opens. DD gaps higher a $62.57
10/24/13 DD closed above our trigger @ 60.75
09/22/13 adjust entry: wait for a close above $60.75
instead of a close above $60.50

Chart of DD

Current Target: DD @ 69.00
Current Stop loss: 59.75
Play Entered on: 10/25/13
Originally listed on the Watch List: 08/11/13


Fluor Corp. - FLR - close: 75.96 (as of Jan. 31, 2014)

Comments:
02/03/14: The reversal in FLR has been pretty ugly. The market's sell-off on Monday, January 27th was enough to push FLR below our stop loss at $76.75. If the current weakness continues the next level of support could be $70 or its simple 200-dma.

FYI: FLR is scheduled to report earnings on February 18th.

- Suggested Positions -
(exit 2014 call on Nov. 13th)
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - exit $9.30 (+220.6%)

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - exit $8.70 (+52.6%)

01/27/14 stopped out on the widespread market sell-off today
01/26/14 caution: FLR looks poised to hit our stop loss.
01/19/14 new stop loss @ 76.75
12/22/13 new stop loss @ 74.40
11/24/13 new stop loss @ 72.75
11/13/13 exit target hit for 2014 Jan. $70 calls
11/10/13 new stop loss @ 71.40
(see earlier updates for older comments)
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of FLR:

Current Target: Target for 2015 calls is FLR @ $88.00
Current Stop loss: 76.75
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


Home Depot, Inc. - HD - close: 76.85 (as of Jan. 31, 2014)

Comments:
02/03/14: HD has suffered some ugly profit taking in the last two weeks. The stock has been slicing through potential support levels and key moving averages. HD hit our stop loss at $76.75 on Jan. 29th.

NOTE: Traders may have gotten a better exit on the 2016 option. The spread is normally 30 to 50 cents. On the 29th the spread appeared to be $1.80.

- Suggested Positions -
DEC 27, 2013 - entry price on HD @ 81.65, option @ 3.40
symbol: HD1517a90 2015 JAN $90 call - exit $1.52 (-55.2%)

- or -

DEC 27, 2013 - entry price on HD @ 81.65, option @ 6.55
symbol: HD1615a90 2016 JAN $90 call - exit $3.20 (-51.1%)

01/29/14 stopped out at $76.75

Chart of HD:

Current Target: HD at $99.00
Current Stop loss: 76.75
Play Entered on: 12/27/13

Originally listed on the Watch List: 12/01/13


Juniper Networks - JNPR - close: 26.61 (as of Jan. 31, 2014)

Comments:
02/03/14: Our plan was to exit our JNPR play on Monday, January 27th to lock in gains. The stock was kind enough to see a small gap open higher on the 27th.

- Suggested Positions -
JAN 13, 2014 - entry price on JNPR @ 25.07, option @ 3.95
symbol:JNPR1517a25 2015 JAN $25 call - exit $4.90 (+24.0%)

- or -

JAN 13, 2014 - entry price on JNPR @ 25.07, option @ 5.10*
symbol:JNPR1615a25 2016 JAN $25 call - exit $6.10 (+19.6%)

01/27/14 planned exit
01/26/14 prepare to exit on Monday morning to lock in gains.
01/19/14 new stop loss @ 22.75, adjust target to $29.75
01/13/14 trade opens with JNPR's gap open higher at $25.07
*option entry price is an estimate since the option did not trade at the time our play was opened.
01/10/14 JNPR meets our entry point requirement with a close above $23.25

Chart of JNPR

Current Target: exit calls when JNPR hits $29.75
Current Stop loss: 22.75
Play Entered on: 01/13/14
Originally listed on the Watch List: 01/05/14


The Manitowoc Co. - MTW - close: 28.45 (as of Jan. 31, 2014)

Comments:
02/03/14: Target achieved.

MTW was a big winner last week with a +20% gain. Most of that gain was from Friday's rally. Shares hit an intraday high of $29.39 before paring its gains to settle at $28.45. The move was a reaction to MTW's earnings report released on Thursday night. MTW beat estimates by 13 cents. Wall Street was only expecting 34 cents a share and MTW reported 47 cents. Our exit target was hit on Friday at $28.00.

- Suggested Positions -
DEC 19, 2013 - entry price on MTW @ 22.33, option @ 2.85*
symbol: MTW1517a25 2015 JAN $25 call - exit $5.55** (+94.7%)

01/31/14 target hit at $28.00
**option exit price is an estimate since the option did not trade at the time our play was closed.
01/12/14 new stop loss @ 21.90, investors may want to just lock in profits now.
12/19/13 trade opens. MTW @ 22.33
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/18/13 triggered with MTW close at $22.36, above our $22.10 trigger

Chart of MTW
Current Target: $28.00
Current Stop loss: 21.90
Play Entered on: 12/19/13
Originally listed on the Watch List: 12/15/13


Wyndham Worldwide - WYN - close: 70.94 (as of Jan. 31, 2014)

Comments:
02/03/14: WYN continues to see profit taking. Today's market-wide sell-off (Monday, Feb. 3rd) has pulled WYN below round-number support near $70.00. WYN is underperforming with a -3.1% decline. Our stop loss has been hit at $69.40.

- Suggested Positions -
NOV 18, 2013 - entry price on WYN @ 68.97, option @ 4.20
symbol: WYN1517a75 2015 JAN $75 call - exit $3.50 (-16.6%)

02/03/14 stopped out
01/19/14 new stop loss @ 69.40
12/22/13 new stop loss @ 67.40
12/01/13 new stop loss @ 65.40
11/24/13 new stop loss @ 64.75
11/18/13 trade opens. WYN opens @ 68.97

Chart of WYN:

Current Target: 85.00
Current Stop loss: 69.40
Play Entered on: 11/18/13
Originally listed on the Watch List: 11/10/13