Editor's Note:

MU was added on Monday and A graduated to our play list on Friday.


Closed Plays


We closed our LVLT on Feb. 10th to lock in potential gains.



Play Updates


Agilent Technologies - A - close: 55.25

Comments:
02/16/14: Agilent is a new addition to the play list. We had this stock on our watch list with a buy-the-dip entry point at $55.00. There was the potential for a post-earnings sell-off and Agilent didn't disappoint on that end. The company did disappoint in its earnings report. A beat estimates by one cent but revenues came in just below expectations. Management then lowered their Q2 guidance. Full year guidance was a bit soft as well. The stock reacted to this bearish guidance with a gap down at $57.15 on Friday and an intraday drop to $54.87. Our buy-the-dip trigger to buy calls was hit at $55.00 in the last hour of trading. If you haven't opened positions yet more conservative investors may want to take a step back and see where the dust settles. You could wait for a bounce back above $56.00 or wait to see if shares dip toward the next level of support near $53.00. I am adjusting our stop loss from $52.40 to $52.90.

Earlier Comments:
FYI: Agilent is planning to spin off its electronic measurement company, Keysight Technologies, toward the end of 2014.

- Suggested Positions -
FEB 14, 2014 - entry price on A @ 55.00, option @ 3.70
symbol: A1517a60 2015 JAN $60 call - current bid/ask $3.75/3.85

- or -

FEB 14, 2014 - entry price on A @ 55.00, option @ 5.10
symbol: A1615a65 2016 JAN $65 call - current bid/ask $4.65/5.10

02/16/14 new stop loss @ 52.90 (was 52.40)
02/14/14 triggered at $55.00
02/09/14 adjust the entry trigger to $55.00 (from $55.50)

Chart of A:

Current Target: BAC @ $74.00
Current Stop loss: 52.90
Play Entered on: 02/14/14
Originally listed on the Watch List: 01/26/14


Bank of America - BAC - close: 16.70

Comments:
02/16/14: It was a quiet week for shares of BAC. The stock traded sideways in the $16.60-16.90 zone. Look for support near its 50-dma (around $16.25). 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 $2.60/2.64

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: 37.60

Comments:
02/16/14: BBT continued to rebound from its early February lows. Yet shares seemed to find new resistance in the $37.75 area. At this point I would suggest waiting for a close above $38.00 before considering new bullish positions.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.35/1.40

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: 79.23

Comments:
02/16/14: DIS continues to outperform with another week of big gains. Shares garnered bullish analyst comments and a new $90 price target a few days ago. DIS also pushed past short-term resistance near $78 to close at new all-time highs.

We still have several months left on our 2015 calls so I am raising our long-term price target from $84 to $89 but more conservative investors may want to go ahead and take profits now, near $80. 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 $9.15/9.30

02/16/14 more conservative traders may want to take profits now.
We are adjusting our long-term target from $84 to $89
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 @ 89.00
Current Stop loss: 69.40
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Delphi Automotive - DLPH - close: 64.12

Comments:
02/16/14: DLPH rallied to new all-time highs but momentum stalled once shares hit $64.00. The stock is near a trend line of higher highs so DLPH could be due for a pullback. I am not suggesting new positions at this time.

- Suggested Positions -
JAN 24, 2014 - entry price on DLPH @ 60.25, option @ 4.49
symbol: DLPH1517a65 2015 JAN $65 call - current bid/ask $5.80/6.30

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: 38.95

Comments:
02/16/14: I am growing concerned with our FL trade. The stock is actually up three weeks in a row but it has been a volatile three weeks. Gains this past week were disappointing. More conservative investors may want to just abandon ship right now. I am not suggesting new positions.

If FL does not perform better this week I'll likely drop it as an active trade.

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

02/16/14 recent performance has been disappointing. Investors may want to exit early now.
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: 81.21

Comments:
02/16/14: GILD posted gains for the week but shares continue to struggle with resistance in the $82-83 area. I am not suggesting new positions at this time. I am turning more defensive and raising our stop loss to $74.00.

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 $9.00/9.30

02/16/14 new stop loss @ 74.00
02/07/14 triggered @ 76.25
01/26/14 move the buy-the-dip trigger from 75.25 to 76.25

Current Target: exit when GILD hits $95.00
Current Stop loss: 74.00
Play Entered on: 02/07/14
Originally listed on the Watch List: 01/19/14


Honeywell Intl. - HON - close: 94.61

Comments:
02/16/14: HON is still showing relative strength. The stock is up three weeks in a row and this past week produced a rally to new all-time highs. HON is currently hovering just below resistance at the $95.00 level. Our target is $98.00. 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 $12.30/12.50

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: 90.59

Comments:
02/16/14: Shares of HP also rallied to new all-time highs last week. The breakout past $90.00 is technically bullish. However, HP closed near a trend line of higher highs (resistance) so do not be surprised to see a pullback soon. HP's 50-dma has risen to $84.17. I am adjusting our stop loss to $84.00. 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 $ 8.80/9.10

02/16/14 new stop loss @ 84.00
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: 84.00
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


Hospira Inc. - HSP - close: 43.55

Comments:
02/16/14: HSP posted a gain for the week but the trading action in the stock actually looks a bit bearish. HSP reported earnings on Feb. 12th. The company managed to beat Wall Street's estimates on both the top and bottom line. Unfortunately the stock has seen sold off, slightly, following its earnings data. Technically shares failed at their January highs producing a bearish double top. HSP should still have support near $42.00. Investors may want to wait for another dip near $42 and then look for a bounce before considering new positions.

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 $ 3.80/4.20

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: 58.15

Comments:
02/16/14: JPM has been a beacon of strength for the financials. Shares are up three weeks in a row and up nine sessions in a row. On a short-term basis the stock is overbought and due for a pullback. I am not suggesting new positions at this time.

- 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 $ 6.00/6.10

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


Micron Technology - MU - close: 25.08

Comments:
02/16/14: Last week MU graduated from our watch list to our new play list after meeting our entry point requirement on Friday, February 7th. Since then MU has quietly consolidated sideways near the $25.00 level.

Depending on your trading style you could wait for a new high above $25.30 or wait for a dip toward $24.00 or even the 50-dma near $22.90 as an alternative entry point to launch positions.

Earlier Comments:
Keep in mind that late last year MU saw some volatility around news that a rival chip maker, Hynix, was building a new factory in 2014 and investors worried that might (naturally) impact supply and thus memory pricing. This could be a story that shows up again in 2014 even though the new factory probably won't start producing until 2015.

- Suggested Positions -
FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.75*
symbol: MU1517a25 2015 JAN $25 call - current bid/ask $ 3.90/3.95

- or -

FEB 10, 2014 - entry price on MU @ 24.64, option @ 3.60*
symbol: MU1615a30 2016 JAN $30 call - current bid/ask $ 3.70/3.90

02/10/14 trade opens, MU @ $24.64
*option entry price is an estimate since the option did not trade at the time our play was opened.
02/07/14 MU meets our entry point requirement with a close above $24.50
02/03/14 adjust entry strategy. Instead of a buy-the-dip trigger at $22.00, wait for MU to close above $24.50 and then buy calls the next day.

Current Target: MU @ $29.75
Current Stop loss: 21.75
Play Entered on: 02/10/14
Originally listed on the Watch List: 01/12/14


QUALCOMM Inc. - QCOM - close: 76.28

Comments:
02/16/14: QCOM kept its rally alive and stretched its gains to three weeks in a row. This past week saw a breakout past its January highs. I remain long-term bullish but would hesitate to launch positions at current levels. QCOM is testing a trend line of higher highs and shares could see a pullback soon.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $6.00/6.15

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: 75.03

Comments:
02/16/14: Hmm... SBUX only managed a 99-cent gain for the week. Shares have spent the last few days consolidating sideways under round-number resistance at the $75.00 level. If this bounce continues then SBUX could breakout past its two-month trend of lower highs, which could be bullish. I do see potential resistance at its 50-dma and the $76.00 level. If you're looking for a new entry point then a close above $76.00 could qualify. Alternatively if SBUX fails at current levels then we'll likely see shares retest their lows in the $69-70 zone.

On a side note, here's fun little story about how NBC has a "private" Starbucks in their Socchi Olympic operations. read the article here .

- Suggested Positions -
FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 4.65
symbol: SBUX1517a75 2015 JAN $75 call - current bid/ask $6.70/6.85

- or -

FEB 03, 2014 - entry price on SBUX @ 70.50, option @ 6.75*
symbol: SBUX1615a80 2016 JAN $80 call - current bid/ask $8.15/8.35

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: 46.13

Comments:
02/16/14: WFC continues to hold up well. The gains last week were not amazing but they were still gains. WFC is currently trading just below short-term resistance near $46.25. Investors might want to wait for a close above this level before initiating new positions. Or if you think the market is going to roll over then wait for another dip toward $44.00 as an alternative entry point.

- Suggested Positions -
DEC 26, 2013 - entry price on WFC @ 45.50, option @ 1.50
symbol: WFC1517a50 2015 JAN $50 call - current bid/ask $ 1.35/1.40

-- or --

DEC 26, 2013 - entry price on WFC @ 45.50, option @ 2.95*
symbol: WFC1615a50 2016 JAN $50 call - current bid/ask $ 2.85/2.99

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


Level 3 Communications - LVLT - close: 38.48

Comments:
02/16/14: It looks like I was a little early calling a top in shares of LVLT. Two weeks ago the stock had moved higher in a big way and stopped at potential resistance. Our plan was to exit positions on Monday morning, Feb. 10th, to lock in potential gains. A bullish market allowed LVLT to keep climbing and shares added another +4.7% for the week.

Our exit was on the 10th at $36.82.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - exit $8.30** (+88.6%)

02/10/14 planned exit at the opening bell
**option exit price is an estimate since the option did not trade at the time our play was closed.
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