Editor's Note:

After drifting lower almost all day long the S&P 500 produced a sharp, late-day rebound to pare its losses.

Most of our candidates were little changed on the session. Many of them look poised for new gains tomorrow if the broader market cooperates.

Current Portfolio:


CALL Play Updates

Citrix Systems - CTXS - close: 73.87 change: +0.25

Stop Loss: 69.75
Target(s): Mar calls: $76.50
Current Option Gain/Loss: (Feb70c: + 8.1%) & Mar70c: +57.5%
Time Frame: 2 to 4 weeks
New Positions: , see below

Comments:
02/14 update: It was a relatively quiet day for CTXS. Shares didn't see a lot of selling pressure this morning. The stock consolidating sideways under short-term resistance near $74.00. Readers may want to raise their stops closer to the $71.50-72.00 area. 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: 54.01 change: +0.20

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:
02/14 update: Hmm... CVLT refuses to move lower. Given the market's widespread declines earlier today I would have expected CVLT to see some profit taking. Instead the stock continues to drift sideways in a very narrow range near $54.00. Volume is getting lighter as well.

No changes from my prior comments yet. 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: 88.50 change: +0.78

Stop Loss: 84.75
Target(s): 89.75 & 92.50
Current Option Gain/Loss: Feb$87.5c:+130.0% & Mar$87.5c: +30.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14 update: DLTR continues to show relative strength. The stock rallied to another new high with a +0.8% gain today. Yesterday we adjusted our plan to exit our Feb. $87.50 calls at the closing bell today.

I am not suggesting new positions at this time. Our exit target for the March calls is $92.50 but the $90.00 level could be round-number resistance.

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 -

Feb $87.50 call (DLTR1218B87.5) entry $0.50 exit $1.15 (+130.0%)

- or -

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

02/14/12 scheduled close for the Feb. $87.50 calls at the closing bell tonight. bid on the call option was $1.15 (+130%).
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: 117.16 change: -0.26

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:
02/14 update: The rally in FLS took a day off to rest. Shares spent the session bouncing along new short-term support near $116.00. I don't see any changes from my prior comments. Readers may want to go ahead and exit now. Our official exit price is $118.00. 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: 87.99 change: -0.04

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:
02/14 update: MMM spiked down at the open but selling pressure was mild. The stock recovered to close near the $88 level again. We are still waiting ont he sidelines. 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: 64.12 change: -0.12

Stop Loss: 61.75
Target(s): 64.75
Current Option Gain/Loss:(Feb$60c: + 91.4%) & Mar$60c: +58.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14 update: After yesterday's new high PLL hit some profit taking this morning. The stock spiked down to $62.61 but quickly rebounded. Shares almost made it back into positive territory thanks to the market's sharp bounce late this afternoon. 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: 37.85 change: -0.09

Stop Loss: 36.45
Target(s): 43.00
Current Option Gain/Loss: Feb37c: -48.1% & Mar36c: - 8.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/14 update: It was another quiet day for the XES. Unfortunately we are quickly running out of time for the February calls. Yesterday we adjusted our plan to exit our February calls at the closing bell today. I am not suggesting new positions at this time.

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 -

Feb $37 call (XES1218B37) Entry $1.35 exit $0.70 (-48.1%)

- or -

Long Mar $36 call (XES1217C36) Entry $2.45

02/14/12 exited Feb. calls at the close: bid @ $0.70 (-48.1%)
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


Oil & Gas Exploration ETF - XOP - close: 58.76 change: +0.45

Stop Loss: 56.45
Target(s): 63.00
Current Option Gain/Loss: Mar$60c: - 2.9% & Jun$60c: - 2.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/14 update: Our new trade on the XOP has been opened. Shares hit our trigger at $58.75 while it was churning sideways in the $58.20-59.00 zone all day long. FYI: The Point & Figure chart for XOP is bullish with a $74 target.

- Suggested Positions -

Long Mar $60 call (XOP1217C60) Entry $1.70

- or -

Long Jun $60 call (XOP1216F60) Entry $4.10

Entry on February 14 at $58.75
Earnings Date --/--/--
Average Daily Volume = 3.8 million
Listed on February 13, 2012


PUT Play Updates

Green Mountain Coffee Roasters - GMCR - close: 67.32 change: +1.93

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:
02/14 update: We may have to abandon our plans for a put play on GMCR. The bounce continues and GMCR outperformed the market with a +2.9% gain.

Currently 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: 65.69 change: +1.03

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:
02/14 update: Bears are also on the run in WLP. Shares outperformed the market today with a +1.5% bounce. The stock is nearing what should be resistance at the $66.00 level.

Currently 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