Editor's Note:

Shares of FLS rallied to new eight-month highs on positive analyst comments. The stock is about to hit our exit target. Readers may want to go ahead and lock in gains now.

The same goes for our PLL trade.

Current Portfolio:


CALL Play Updates

Citrix Systems - CTXS - close: 73.62 change: +2.16

Stop Loss: 69.75
Target(s): Mar calls: $76.50
Current Option Gain/Loss: (Feb70c: + 8.1%) & Mar70c: +51.5%
Time Frame: 2 to 4 weeks
New Positions: , see below

Comments:
02/13 update: CTXS displayed some relative strength on Monday with a +3.0% surge to new six-week highs. We are raising our stop loss to $69.75. I am not suggesting new bullish positions at this time.

Earlier Comments:
The plan was to keep our position size small. Our target is $76.50 for the March calls.

(small positions!) - Suggested Positions -

Long Mar $70 calls (CTXS1217C70) Entry $3.30

02/13/12 new stop loss @ 69.75
02/10/12 planned exit for Feb. $70 calls @ the open.
bid on calls opened at $2.00 (+8.1%)
02/09/12 new stop loss @ 68.75
02/09/12 prepare to exit Feb. $70 calls at the open tomorrow. current bid $2.50 (+35%)

Entry on February 07 at $70.50
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on February 06, 2012


CommVault Systems - CVLT - close: 53.81 change: +0.16

Stop Loss: 49.75
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
02/13 update: CVLT spent Monday consolidating sideways. Our plan is to buy calls on a dip at $51.50. More conservative traders may want to wait and buy the bounce from this area. FYI: The Point & Figure chart for CVLT is bullish with a long-term $86 target.

NOTE: We want to keep our position size small because the option spreads on CVLT are a bit wide.

buy-a-dip trigger @ 51.50

- Suggested Positions - (small positions!)

buy Mar $55 call (CVLT1217C55)

02/09/12 trade did not open (barely). Adjust entry point strategy to buy a dip at $51.50, stop loss $49.75

Entry on February xx at $ xx.xx
Earnings Date 05/10/12 (unconfirmed)
Average Daily Volume = 531 thousand
Listed on February 08, 2012


Dollar Tree - DLTR - close: 87.72 change: +0.89

Stop Loss: 84.75
Target(s): 89.75 & 92.50
Current Option Gain/Loss: Feb$87.5c: +40.0% & Mar$87.5c: +13.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/13 update: DLTR continues to rally as expected and shares closed at new highs. We do not have much time left on our February calls (just four trading days). I am suggesting we exit our Feb. $87.50 calls tomorrow at the closing bell.

Earlier Comments:
Keep a wary eye on the $90.00 level since it might be round-number resistance. FYI: The Point & Figure chart for DLTR is bullish with a long-term $113 target.

(small positions) - Suggested Positions -

Long Feb $87.50 call (DLTR1218B87.5) entry $0.50
exit target: 89.75

- or -

Long Mar $87.50 call (DLTR1217C87.5) entry $2.30
exit target: 92.50

02/13/12 prepare to exit our Feb. calls at the close tomorrow
02/09/12 trade opened
02/04/12 Only open small (half-sized) positions if DLTR hits our entry point at $86.75

Entry on February 09 at $86.75
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on February 02, 2012


Flowserve Corp. - FLS - close: 117.42 change: +2.07

Stop Loss: 114.40
Target(s): 114.50 for Feb call & 118.00 for April call
Current Option Gain/Loss: (Feb $110c: +48.2%) & Apr$115c: +60.0%.
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
02/13 update: Positive analyst comments this morning helped fuel FLS' rally and its breakout to new multi-month highs. The intraday high was $117.50. Readers will want to seriously consider exiting our April calls immediately. Our official exit price is $118.00. I am raising our stop loss up to $114.40. More aggressive traders could aim for the $120 level.

- Suggested Positions -

Long APR $115 call (FLS1221D115) Entry $4.00
exit target: $118.00

02/13/12 new stop loss @ 114.40, readers may want to exit now. April $115 call (bid) is at $7.20 (+80.0%)
02/11/12 new stop loss @ 112.40
02/09/12 new stop loss @ 111.75
02/04/12 new stop loss @ 109.45
02/03/12 exit target hit at $114.50 for Feb. $110 calls. exit $5.00 (+48.2%)
02/02/12 new stop loss @ 107.95
02/01/12 new stop loss @ 106.95
02/01/12 adjusted exit targets: $114.50 for Feb call, $118.00 for Apr call
01/30/12 new stop loss at $105.75
01/26/12 trade opened on FLS' gap open higher at $109.21.
01/25/12 adjusted entry point strategy to buy calls when FLS hits $109.05, and use a stop loss at $105.45

Entry on January 26 at $109.21
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 400 thousand
Listed on January 21, 2012


3M Co. - MMM - close: 88.03 change: +0.89

Stop Loss: 86.45
Target(s): 94.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
02/13 update: MMM bounced back toward resistance near $88.00 but shares have not yet broken out to new relative highs. The plan is to open bullish positions at $88.50.

NOTE: MMM begins trading ex-dividend on Feb. 15th. We can expect shares to gap down by 60 cents.

Earlier Comments:
The $90 level could be round-number resistance but we're setting our exit target at $94.00. FYI: The Point & Figure chart for MMM is bullish with a $109 target.

Breakout Trigger (buy calls) @ $88.50

- Suggested Positions -

buy the MAR $90 call (MMM1217C90)

02/09/12 removed the February call.

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on February 07, 2012


Pall Corp. - PLL - close: 64.24 change: +0.97

Stop Loss: 61.75
Target(s): 64.75
Current Option Gain/Loss:(Feb$60c: + 91.4%) & Mar$60c: +65.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/13 update: PLL continues to show relative strength. The stock added another +1.5% to close at new highs. Our exit target is $64.75 but readers may want to lock in gains now.

- Suggested Positions -

Long MAR $60 call (PLL1217C60) Entry $2.90

02/13/12 readers may want to exit early to lock in gains on our March calls.
02/10/12 exit Feb $60 call, bid @ $3.35 (+91.4%)
02/09/12 prepare to exit Feb calls at the open tomorrow. current bid is $3.60 (+105%)
02/09/12 new stop loss @ 61.75
02/04/12 new stop loss @ 59.45

Entry on February 02 at $61.00
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 769 thousand
Listed on January 31, 2012


S&P Oil ETF - XES - close: 37.94 change: +0.43

Stop Loss: 36.45
Target(s): 43.00
Current Option Gain/Loss: Feb37c: -40.7% & Mar36c: - 8.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/13 update: Oil and energy stocks enjoyed a strong bounce this morning but gains in the XES faded. The ETF still managed a +1.1% gain. I am not suggesting new positions at this time.

February options expire in four trading days. I am suggesting we exit our February calls at the closing bell tomorrow.

Earlier Comments:
The option spreads on the XES a bit wide, which makes this a higher-risk trade. I am suggesting we keep our position size small to limit our risk. Our multi-week exit target is $43.00. I prefer the March calls but short-term traders can use February options but these expire in two weeks.

(small positions) - Suggested Positions -

Long Feb $37 call (XES1218B37) Entry $1.35

- or -

Long Mar $36 call (XES1217C36) Entry $2.45

02/13/12 prepare to exit our Feb. $37 calls at the closing bell tomorrow.

Entry on February 06 at $37.75
Earnings Date --/--/--
Average Daily Volume = 177 thousand
Listed on February 04, 2012


PUT Play Updates

Green Mountain Coffee Roasters - GMCR - close: 65.39 change: +2.54

Stop Loss: 65.01
Target(s): 56.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
02/13 update: GMCR broke a four-day losing streak with a +4.0% bounce today. We're on the sidelines waiting for a drop to new relative lows.

I am suggesting a trigger to buy puts $61.75 with a stop loss at 65.01. Our exit target is $56.00. GMCR can be a volatile stock so we want to keep our position size small. Plus, the $60.00 level could still act as potential support.

Buy Puts Trigger @ $61.75 (small positions)

- Suggested Positions -

buy the Mar $60 PUT (GMCR1217O60)

Entry on February xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 6.4 million
Listed on February 11, 2012


WellPoint Inc. - WLP - close: 64.66 change: +0.49

Stop Loss: 65.15
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
02/13 update: WLP also participated in the market's widespread bounce on Monday. Shares gained +0.7% but volume was pretty low. There is no change from my weekend comments.

The late January low was $63.48. I am suggesting a trigger to open bearish positions at $63.25. If triggered our target is $58.50 but more conservative traders may want to exit near $60.00 which could act as round-number support.

Buy Puts Trigger @ 63.25

- Suggested Positions -

buy the Mar $62.50 PUT (WLP1217O62.5)

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on February 11, 2012