Editor's Note:

We want to close our LVLT trade immediately on Monday morning, Feb. 10th, to lock in potential gains.

GILD has graduated from our watch list to our play list.


Closed Plays


Our plan was to close the AVGO and MSI trades on Feb. 4th.

ALK, DE, HFC, ITW, and SNDK hit our stop loss.



Play Updates


Bank of America - BAC - close: 16.82

Comments:
02/09/14: BAC bounced from its rising 40-dma and managed to post a gain for the week. Shares look ready to breakout past the three-week trend of lower highs. I am not suggesting new positions at this time.

- 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 $2.76/2.80

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:
02/09/14: After a three-week pullback the correction in shares of BBT might be over. The stock dipped to an intraday low of $36.28 on Tuesday. If you're looking for an entry point you could buy this bounce or wait for a new close above $38.00 (although if you choose an entry point now I suggest you adjust your stop loss higher).

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.28/1.33

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


The Walt Disney Co. - DIS - close: 75.67

Comments:
02/09/14: DIS reported earnings last week and results were better than expected. Wall Street was looking for a net profit of 91 cents a share with revenues of $12.23 billion. DIS delivered $1.04 a share on revenues of $12.31 billion. The stock soared toward its recent highs on Thursday.

It was a close call. DIS was testing support near $70 and its 100-dma earlier in the week during the market sell-off. Now DIS is hovering below resistance in the $76.00-76.50 area. I am not suggesting new positions at this time.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $7.15/7.25

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: 62.41

Comments:
02/09/14: DLPH held up pretty well last week especially considering that management lowered their earnings guidance when the company reported earnings. DLPH announced earnings on Feb. 4th and beat estimates on both the top and bottom line. Management lowered guidance for the first quarter but reaffirmed full year 2014 estimates. Surprisingly shares of DLPH did not see a bit sell-off on the earnings warning. Shares briefly spiked lower under $59 and its 100-dma only to quickly rebound.

FYI: Investors should 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 $4.90/5.40

02/04/14 DLPH reports better than expected earnings but lowers Q1 guidance

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: 38.67

Comments:
02/09/14: FL eked out a very minor gain for the week. At its close on Monday the stock was down more than 11% from its recent highs. Fortunately that proved to be support near FL's rising 100-dma. Shares have rebounded back toward overhead resistance near $39.00. 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 $3.10/3.40

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


Gilead Sciences - GILD - close: 78.75

Comments:
02/09/14: GILD was a watch list candidate. Shares hit our suggested buy-the-dip entry point at $76.25 on Friday morning (the intraday low on Thursday was $76.26). As expected GILD bounced from technical support at its 50-dma and ended Friday's session higher. I would still consider new positions now at current levels. We're starting this trade with a stop loss at $69.75. More conservative investors may want to use a higher stop closer to the $74 area.

Earlier Comments:
I am labeling this a more aggressive, higher risk trade. There is always the risk that the wrong headline sends any biotech stock gapping lower (or higher as the case may be). I'm suggesting small positions to start. Broken resistance near $75.00 should be new support. Currently the point & figure chart is bullish and forecasting at $98 target.

- Suggested Positions -
FEB 07, 2014 - entry price on GILD @ 76.25, option @ 7.30
symbol: GILD1517a85 2015 JAN $85 call - current bid/ask $8.30/8.40

02/07/14 triggered @ 76.25
01/26/14 move the buy-the-dip trigger from 75.25 to 76.25

Chart of GILD:

Current Target: exit when GILD hits $95.00
Current Stop loss: 69.75
Play Entered on: 02/07/14
Originally listed on the Watch List: 01/19/14


Honeywell Intl. - HON - close: 93.16

Comments:
02/09/14: HON has weathered the market's recent storm very well. The two-day bounce helped launch shares of HON to a new high. I am raising our stop loss to $87.45.

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 $11.60/11.80

02/09/14 new stop loss @ 87.45
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: 87.45
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Helmerich & Payne, Inc. - HP - close: 87.17

Comments:
02/09/14: HP looks relatively unscathed from the market's recent turmoil. Shares bounced at their rising 40-dma, which was support in late November. The next challenge for bulls is pushing HP past the $90.00 level. 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 $ 7.00/7.40

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: 82.45
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


Hospira Inc. - HSP - close: 42.89

Comments:
02/09/14: HSP held support near the $42.00 level just as we expected. Unfortunately the rebound from this support was a bit muted. Investors could be waiting for HSP's earnings report. The company will announce on February 12th before the opening bell (Wednesday). I would be tempted to buy calls here but the smarter move is to probably wait and see how HSP reacts following its earnings report. More conservative investors might want to raise their stop loss closer to $41.00 or even the 50-dma near $41.80.

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 $ 3.50/4.00

02/03/14 triggered at $43.00

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


JPMorgan Chase & Co. - JPM - close: 56.62

Comments:
02/09/14: The market's volatility last week pushed JPM low enough to pierce its long-term trend line of higher lows (best seen on the weekly chart). Fortunately JPM and the financial sector bounced. Shares are now testing short-term resistance near $57 and its 50-dma. I am not suggesting new positions at this time. We will raise our stop loss to $53.65.

- 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 $ 5.15/5.25

02/09/14 new stop loss @ 53.65
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: 53.65
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Level 3 Communications - LVLT - close: 36.75

Comments:
02/09/14: LVLT was a big winner last week. The company reported earnings on the 5th and the results were good enough to send shares soaring. The rally stalled at its trend line of resistance. After a +18.5% gain in the last four days I am suggesting an immediate exit!

Prepare to exit positions on Monday morning, Feb. 10th.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 8.30/9.20

02/09/14 prepare to exit immediate, Feb. 10th at the opening bell
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.

Chart of LVLT:
Current Target: $39.00
Current Stop loss: 29.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


QUALCOMM Inc. - QCOM - close: 74.41

Comments:
02/09/14: QCOM held up pretty well. Traders bought the dip near short-term support at $72.00 and QCOM produced a gain for the week. Shares look poised to run tow their recent high near $76.00. While I'm long-term bullish on QCOM I am a bit hesitant to launch new positions.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.45/5.60

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: 74.04

Comments:
02/09/14: SBUX gave us a bit of a scare on Monday when it pierced the $70.00 level (and triggered our play on the move lower). Fortunately the stock immediately bounced on Tuesday and ended the week with big gains. The rally back above $70 and back above its 200-dma is positive.

The $76.00 level and its 50-dma could both be overhead resistance. If you're looking for a new entry point I would suggest waiting for a dip back toward $72 or its 200-dma and then buy calls on a bounce. Please note I am moving the stop loss up to $67.90.

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $6.50/6.55

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $8.15/8.45

02/09/14 new stop loss @ 67.90
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.

Current Target: $82.00
Current Stop loss: 67.90
Play Entered on: 02/03/14
Originally listed on the Watch List: 01/05/14


Wells Fargo & Co. - WFC - close: 45.37

Comments:
02/09/14: The two-day rebound in WFC left shares with a fractional gain for the week. The close back above $45.00 and its 50-dma is technically encouraging. I would be tempted to launch new bullish positions if we see WFC close above $46.00.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.31/1.36

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 2.72/2.89

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


Alaska Air Group - ALK - close: 77.82

Comments:
02/09/14: The stock market's sell-off early last week was too much for our new ALK trade. Shares hit our stop loss at $72.75 on Tuesday morning. ALK's rebound looks promising. The stock's long-term trend of higher lows remains in place. I would keep this stock on your watch list. The next challenge for the bulls is resistance near $80.00.

- Suggested Positions -
FEB 03, 2014 - entry price on ALK @ 75.25, option @ 7.90
symbol: ALK1517a80 2015 JAN $80 call - exit $6.80 (-13.9%)

02/04/14 stopped out @ 72.75
*option exit price is an estimate since the option did not trade at the time our play was closed.
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: 56.57

Comments:
02/09/14: Last week it looked like AVGO may have peaked. Our plan was to exit on Tuesday morning, Feb. 4th to lock in potential gains. Since then AVGO has rebounded and is nearing overhead resistance in the $57.00 area.

Our trade closed on Feb. 4th at $53.51 thanks to a gap higher that morning.

- Suggested Positions -
NOV 11, 2013 - entry price on AVGO @ 44.44, option @ 3.60
symbol: AVGO1517a50 2015 JAN $50 call - exit $7.50* (+108.3%)

02/04/14 planned exit this morning
*option exit price is an estimate since the option did not trade at the time our play was closed.
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...

Chart of AVGO:

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


Deer & Co - DE - close: 86.56

Comments:
02/09/14: After all the volatility this past week DE actually managed a gain for the week. Unfortunately the declined on Tuesday morning were too much and DE hit our stop loss at $84.40.

I am still bullish on DE and would keep it on your watch list. The company reports earnings on February 12th. Let's look at it again after it reports.

- Suggested Positions -
DEC 10, 2013 - entry price on DE @ 87.26, option @ 5.85*
symbol: DE1517a90 2015 JAN $90 call - exit $3.85 (-34.1%)

02/04/14 stopped out
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

Chart of DE:

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


HollyFrontier Corp. - HFC - close: 44.97

Comments:
02/09/14: The sell-off in HFC continued midweek and shares hit our stop loss at $44.75 on Tuesday. Even with Friday's bit +2.6% bounce HFC still closed down for the week and marked its fourth weekly loss in a row.

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 - exit $3.05** (-39.0%)

02/04/14 stopped out
**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 @ 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.

Chart of HFC:

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


Illinois Tool Works Inc. - ITW - close: 79.68

Comments:
02/09/14: ITW hit our stop loss at $76.85 right near the closing bell on Monday, Feb. 3rd. The stock dipped again on Tuesday morning and then reversed to followed it with a four-day bounce. The next hurdle for ITW bulls is technical resistance at the 50-dma. Readers may want to keep ITW on their watch list.

- Suggested Positions -
JAN 24, 2014 - entry price on ITW @ 80.66, option @ 3.65*
symbol: ITW1517a85 2015 JAN $85 call - exit $2.40 (-34.2%)

02/03/14 stopped out at $76.85 (after the newsletter was sent)
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)

Chart of ITW:

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


Motorola Solutions - MSI - close: 64.60

Comments:
02/09/14: After MSI's plunge on Monday and its breakdown below the 100-dma we wanted to exit immediately. We closed this trade on Tuesday morning with MSI opening at $63.00. Since then the market's widespread bounce has lifted MSI back above short-term resistance near its 10-dma and 100-dma. I am not suggesting new positions.

- Suggested Positions -
DEC 23, 2013 - entry price on MSI @ 66.75, option @ 4.10
symbol: MSI1517a70 2015 JAN $70 call - exit $2.16 (-47.3%)

- or -

DEC 23, 2013 - entry price on MSI @ 66.75, option @ 5.10
symbol: MSI1615a75 2016 JAN $75 call - exit $2.90* (-43.1%)

02/04/14 planned exit this morning
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

Chart of MSI:
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


SanDisk - SNDK - close: 71.61

Comments:
02/09/14: The market's recent volatility was too much for our SNDK trade. Shares hit our stop loss on Wednesday when they pierced support at the 100-dma and tagged a new multi-week low. Our stop was hit at $67.00. Unfortunately, SNDK immediately bounced and is up three days in a row and above all its key moving averages. I would keep SNDK on your watch list. If the market correction resumes then a dip near $65 or its 200-dma could be a new entry point.

Earlier Comments:
The plan was to start with small positions.

- Suggested (small) Positions -
JAN 13, 2014 - entry price on SNDK @ 72.51, option @ 5.80
symbol: SNDK1517a80 2015 JAN $80 call - exit $3.55* (-38.7%)

02/05/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
01/13/14 trade opens. SNDK @ 72.51

Chart of SNDK:

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