Editor's Note:

The U.S. market shrugged off bearish economic data out of the EU and continued to inch higher.

Momentum does seem to be slowing and we did see a few stocks pullback today.

We closed our SBUX trade at the open this morning.


Current Portfolio:


CALL Play Updates

AMC Networks Inc. - AMCX - close: 59.44 change: -0.32

Stop Loss: 57.90
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on Feb. 26th
New Positions: Yes, see below

Comments:
02/14/13: AMCX spent Valentines day flirting with resistance at the $60.00 level. We are waiting for a breakout higher. I am suggesting a trigger to buy calls at $60.25. More conservative traders may want to wait for a rally past $61.00 before initiating positions because twice in January AMCX found resistance near the $61.00 level.

Please note this is a short-term trade. We do not want to hold over the company's earnings report on Feb. 26th. FYI: The Point & Figure chart for AMCX is bullish with an $86 target.

Trigger @ 60.25

- Suggested Positions -

buy the Mar $60 call (AMCX1316c60)

Entry on February -- at $---.--
Average Daily Volume = 486 thousand
Listed on February 13, 2012


BP Prudhoe Bay Royalty Trust - BPT - close: 80.68 change: +0.09

Stop Loss: 78.25
Target(s): 87.50
Current Option Gain/Loss: -17.5%
Time Frame: Exit prior to earnings in early March
New Positions: see below

Comments:
02/14/13: BPT gapped open lower this morning but managed to march its way back to positive territory. The call option never fully recovered and declined on the session. I would still consider new bullish positions in BPT with the stock above $80.00.

FYI: The Point & Figure chart for BPT is bullish with a $110 target.

*Small Positions* - Suggested Positions -

Long Mar $80 call (BPT1316c80) entry $2.00

Entry on February 13 at $80.25
Average Daily Volume = 131 thousand
Listed on February 07, 2012


Check Point Software Tech. - CHKP - close: 51.27 change: -0.16

Stop Loss: 49.90
Target(s): 54.50
Current Option Gain/Loss: + 2.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14/13: CHKP also spiked down at the open today but shares found support at the $51.00 level. Unfortunately the stock didn't see much of a bounce. I am not suggesting new positions at this time.

*Small Positions* - Suggested Positions -

Long Mar $50 call (CHKP1316c50) entry $1.90

02/13/13 new stop loss @ 49.90
02/06/13 new stop loss @ 49.40

Entry on February 01 at $50.25
Average Daily Volume = 2.7 million
Listed on January 31, 2012


The Cooper Companies - COO - close: 103.79 change: -0.46

Stop Loss: 99.90
Target(s): 107.50
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on Mar. 7th
New Positions: see below

Comments:
02/14/13: COO is down two days in a row. Granted the pullback so far has been very mild but shares are still showing relative weakness versus the S&P 500. Odds are growing we'll see COO dip toward its 10-dma or the $102.50-102.00 area.

Earlier Comments:
Please note that we do want to keep our position size small because the option spreads are a little bit wide. COO is scheduled to report earnings on March 7th. We do not want to hold over the report. FYI: The Point & Figure chart for COO is bullish with a $125 target.

*Small Positions* - Suggested Positions -

Long Mar $105 call (COO1316c105) entry $2.70

Entry on February 06 at $102.60
Average Daily Volume = 303 thousand
Listed on February 02, 2012


The Home Depot - HD - close: 67.34 change: -0.11

Stop Loss: 65.80
Target(s): 69.90
Current Option Gain/Loss: -15.1%
Time Frame: Exit prior to earnings on Feb. 26th
New Positions: see below

Comments:
02/14/13: HD spent Thursday's session consolidating sideways. I would still consider new positions here but readers may want to start with a smaller position size to limit risk.

Earlier Comments:
We plan to exit prior to the company's earnings report on Feb. 26th.

- Suggested Positions -

Long Mar $70 call (HD1316c70) entry $0.66

Entry on February 13 at $67.52
Average Daily Volume = 5.9 million
Listed on February 12, 2012


Lumber Liquidators - LL - close: 63.96 change: +1.02

Stop Loss: 59.45
Target(s): 64.85
Current Option Gain/Loss: +58.0%
Time Frame: Exit PRIOR to earnings on Feb. 20th
New Positions: see below

Comments:
02/14/13: The relative strength in LL continues with a +1.6% gain today. The stock is up several days in a row and growing overbought. Readers may want to seriously consider taking profits early right now. I am adjusting our exit target down to $64.85. More aggressive traders could aim higher.

Earlier Comments:
We do not want to hold over the Feb. 20th earnings report. Shares could see a short squeeze. The most recent data listed short interest at 22% of the very small 23.9 million share float. FYI: The P&F chart is bullish with a $74 target.

- Suggested Positions -

Long Mar $65 call (LL1316c65) entry $1.55

02/14/13 adjust exit down to $64.85
02/13/13 new stop loss @ 59.45

Entry on February 12 at $61.36
Average Daily Volume = 568 thousand
Listed on February 11, 2012


Mohawk Industries - MHK - close: 107.05 change: -0.52

Stop Loss: 101.85
Target(s): 109.75
Current Option Gain/Loss: +17.8%
Time Frame: Exit PRIOR to earnings on Feb. 21st
New Positions: Yes, see below

Comments:
02/14/13: Uh-oh! Did shares of MHK just peak? The stock spiked higher to $108.80 this morning but failed to hold these gains and closed in negative territory. Was today's move a failed rally under the $110 level? Odds are good we could see MHK dip to and retest the $105.00 level as new support. More conservative traders may want to raise their stops.

Earlier Comments:
We do not want to hold over the Feb. 21st earnings report.

- Suggested Positions -

Long Mar $105 call (MHK1316c105) entry $3.65

Entry on February 12 at $105.35
Average Daily Volume = 588 thousand
Listed on February 11, 2012


3M Company - MMM - close: 102.78 change: -0.08

Stop Loss: 100.70
Target(s): 106.50
Current Option Gain/Loss: +16.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/14/13: MMM's rally is starting to look a little tired. Shares dipped to short-term technical support at the rising 10-dma this morning. Traders did buy the dip but MMM still closed negative for the session.

Earlier Comments:
I am suggesting we keep our position size small to limit our risk.

- Suggested Positions -

long Mar $100 call (MMM1316c100) entry $2.95

Entry on February 06 at $102.25
Average Daily Volume = 3.0 million
Listed on February 05, 2012


Rock-Tenn Company - RKT - close: 82.94 change: +0.52

Stop Loss: 79.45
Target(s): 84.85
Current Option Gain/Loss: +18.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/14/13: RKT continues to show relative strength. Traders bought the dip twice today at the $82.00 level and RKT rebounded to a new high. There is no change from my prior comments. We are aiming for $84.85. More aggressive traders could aim higher.

Earlier Comments:
FYI: The Point & Figure chart for RKT is bullish with a long-term $117 target.

- Suggested Positions -

Long Mar $80 call (RKT1316c80) entry $3.05

Entry on February 06 at $81.05
Average Daily Volume = 743 thousand
Listed on February 02, 2012


CBOE Volatility Index - VIX - close: 12.66 change: -0.32

Stop Loss: 11.45
Target(s): 22.00-25.00 range
Current Option Gain/Loss: -18.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
02/14/13: The VIX failed at its 30-dma this morning. That's the third time this morning that the VIX's bounce has reversed at its 30-dma. The index looks poised to test its lows from mid January near the 12.30 level.

Traders may want to consider alternative entry points. You could wait for a dip to 12.30 or better yet buy a bounce off the 12.30 level. One idea would be to wait for the S&P 500 index to close below its simple 10-dma again and then buy puts on the VIX.

- Suggested Positions -

Long Apr $16 call (VIX1317D16) entry $1.90

Entry on February -- at $---.--
Average Daily Volume = n/a
Listed on February 09, 2012


WESCO Intl. Inc. - WCC - close: 75.92 change: +0.41

Stop Loss: 73.25
Target(s): 79.75
Current Option Gain/Loss: + 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14/13: WCC saw a small spike lower at the open but shares quickly bounced off the $75.00 level and set a new multi-year closing high. I would still consider new positions now at current levels.

Earlier Comments:
The breakout past resistance could also spark some short covering. The most recent data listed short interest at 20% of the 41 million-share float.

- Suggested Positions -

Long Mar $75 call (WCC1316c75) entry $2.40

Entry on February 14 at $75.06
Average Daily Volume = 918 thousand
Listed on February 13, 2012


Zimmer Holdings - ZMH - close: 76.34 change: +0.34

Stop Loss: 73.40
Target(s): 79.50
Current Option Gain/Loss: +28.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14/13: ZMH continues to show relative strength with a +0.4% gain. The stock also closed above resistance at the $76.00 level, which is a bullish sign.

Earlier Comments:
I am suggesting we keep our position size small to limit our risk. FYI: The Point & Figure chart for ZMH is bullish with a long-term $89 target.

- Suggested Positions - *small positions*

Long Mar $75 call (ZMH1316c75) entry $1.60

02/09/13 new stop loss @ 73.40

Entry on February 07 at $75.24
Average Daily Volume = 1.2 million
Listed on February 06, 2012


PUT Play Updates

EV Energy Partners - EVEP - close: 55.18 change: -0.38

Stop Loss: 57.25
Target(s): 50.50
Current Option Gain/Loss: -17.8%
Time Frame: exit prior to earnings on Feb. 27
New Positions: see below

Comments:
02/14/13: It looks like EVEP's bounce is running out of steam. Shares underperformed the market with a -0.6% decline. I would wait for a new drop below $54.75 before initiating new bearish positions.

- Suggested Positions -

Long Mar $55 put (EVEP1316o55) entry $3.65

Entry on February 11 at $54.75
Average Daily Volume = 300 thousand
Listed on February 09, 2012


Blue Nile Inc. - NILE - close: 30.30 change: -0.67

Stop Loss: 32.15
Target(s): 27.00
Current Option Gain/Loss: -51.3%
Time Frame: To be determined (see below)
New Positions: see below

Comments:
02/14/13: Shares of NILE were downgraded today but that didn't stop shares from another oversold bounce. The stock really outperformed the market with a +3.3% rebound. Shares have not yet broken the short-term bearish trend of lower highs or tested what should be resistance at the $32.00 level. While the stock might rollover soon more conservative traders may want to abandon ship and exit early now.

Earlier Comments:
We want to keep our position size small to limit our risk.

*Small Positions* - Suggested Positions -

Long Mar $30 PUT (NILE1316o30) entry $1.85

02/13/13 new stop loss @ 32.15
02/11/13 more conservative traders will want to exit prior to the earnings announcement tomorrow after the closing bell. We have decided to hold the position over the report. Please note our new stop loss at $33.05 and our target at $27.00.

Entry on February 07 at $31.45
Average Daily Volume = 319 thousand
Listed on February 06, 2012


SBA Communications - SBAC - close: 67.45 change: -0.82

Stop Loss: 70.05
Target(s): 63.50
Current Option Gain/Loss: - 8.3%
Time Frame: Exit prior to earnings on Feb. 21
New Positions: see below

Comments:
02/14/13: SBAC did not cooperate with us today. The stock spiked down to a new relative low this morning and then immediately bounced. Shares rallied to a +0.9% gain and almost created a bullish reversal signal. We can watch for short-term technical resistance at its simple 10-dma.

Earlier Comments:
Our target is $63.50 although more conservative traders may want to exit near $65.00. Bear in mind that we will exit before the company's earnings report on Feb. 21st if SBAC has not hit our exit by then.

- Suggested Positions -

Long Mar $65 PUT (SBAC1316o65) entry $0.60

Entry on February 13 at $68.21
Average Daily Volume = 131 thousand
Listed on February 12, 2012


CLOSED BULLISH PLAYS

Starbucks Corp. - SBUX - close: 55.55 change: -0.28

Stop Loss: 54.75
Target(s): 59.85
Current Option Gain/Loss: - 43.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/14/13: We have been growing concerned with SBUX's performance. Last night we decided to exit positions at the open this morning. Shares of SBUX did not cooperate and the stock gapped open lower at $55.53. The option opened down as well.

- Suggested Positions -

Mar $55 call (SBUX1316c55) entry $2.51 exit $1.43 (-43.0%)

02/14/13 closed at the opening bell today
02/13/13 SBUX is not performing. We want to exit early tomorrow morning

chart:

Entry on February 01 at $56.57
Average Daily Volume = 6.8 million
Listed on January 30, 2012