Editor's Note:

Shares of Canadian Pacific (CP) and Marathon Oil (MPC) both hit our bullish exit targets today.

COF was closed at the open as planned.
We want to close CHKP and IYT at the open tomorrow.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 89.60 change: +0.37

Stop Loss: 87.25
Target(s): 97.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
03/04/13: After a Monday morning dip back toward $88, traders bought the dip twice and pushed CERN to a new relative high. Shares look poised to breakout past $90.00 soon. I am suggesting a trigger to buy calls at $90.25. If triggered our multi-week target is $97.50. FYI: The Point & Figure chart for CERN is bullish with a long-term $141 target.

Trigger @ 90.25

- Suggested Positions -

buy the Apr $90 call (CERN1320d90) current ask $2.70

Entry on March -- at $---.--
Average Daily Volume = 916 thousand
Listed on March 02, 2012


Check Point Software Tech. - CHKP - close: 51.60 change: -0.24

Stop Loss: 50.75
Target(s): 54.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/13: Hmm... we are starting to worry about CHKP. The stock underperformed the market today and looks poised to breakdown below its 20-dma and 300-dma. Our option has retreated back to breakeven. I am suggesting we abandon ship and exit at the open tomorrow morning.

*Small Positions* - Suggested Positions -

Long Mar $50 call (CHKP1316c50) entry $1.90

03/04/13 prepare to exit tomorrow morning
02/25/13 market looks weak, readers may want to exit now
02/20/13 new stop loss @ 50.75
02/16/13 CHKP looks poised to dip back toward support at $50.00
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


Home Depot - HD - close: 70.29 change: +1.26

Stop Loss: 66.40
Target(s): 74.00
Current Option Gain/Loss: +66.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/13: Shares of HD continue to show strength with a +1.8% gain on Monday. The stock has broken through potential round-number resistance at $70.00. Yet after a five-day rally HD is short-term overbought and could see a pullback. Readers may want to start raising their stop loss.

Earlier Comments:
It is possible that the $70.00 level could act as round-number, psychological resistance especially since the stock failed their multiple times in the 1999-2000 time frame. However, we are going to set our sights on a run to $74.00. FYI: The Point & Figure chart for HD is bullish with a long-term $95 target.

- Suggested Positions -

Long Apr $70 call (HD1320d70) entry $1.00

Entry on February 28 at $ 68.50
Average Daily Volume = 6.9 million
Listed on February 27, 2012


McDonald's - MCD - close: 95.07 change: -0.61

Stop Loss: 94.75
Target(s): 99.75
Current Option Gain/Loss: +10.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/13: MCD dropped quickly this morning but I can't seem to find the news behind the relative weakness. Shares spent the rest of the day hovering on either side of the $95.00 level. If this dip continues the 30-dma near $94.60 should offer a little bit of support. However, we want to play more defensively here. Today's low was $94.87. We are raising the stop loss to $94.75.

FYI: The Point & Figure chart for MCD is bullish with a $115 target.

- Suggested *Small* Positions -

Long Apr $95 call (MCD1320d95) entry $1.66

03/04/13 new stop loss @ 94.75
03/02/13 new stop loss @ 94.25

Entry on February 25 at $95.38
Average Daily Volume = 4.9 million
Listed on February 23, 2012


Toyota Motors - TM - close: 102.69 change: +0.09

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/04/13: Shares of TM spent the morning churning sideways in the $101.50-102.00 zone before starting to rally after lunchtime. I don't see any changes from my weekend comments.

Earlier Comments:
I am suggesting a trigger to buy calls at $103.25. If triggered our target is $108.00. More aggressive traders could aim higher.

I do want to warn you that shares of TM tend to gap open (up or down) each day as the U.S. shares adjust for trading that occurs back home in Japan.

Trigger @ 103.25

- Suggested Positions -

buy the Apr $105 call (TM1320d105) current ask $1.99

Entry on March -- at $---.--
Average Daily Volume = 686 thousand
Listed on March 02, 2012


CBOE Volatility Index - VIX - close: 14.01 change: -1.35

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -15.7%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/04/13: The VIX opened higher but ended the day with a -8.7% decline. If the stock market continues to rally we could see the VIX retreat back toward its lows near 12.00 again.

- Suggested Positions -

Long Apr $16 call (VIX1317D16) entry $1.90

02/25/13 adjust exit target to 19.90

Entry on February 10 at $13.37
Average Daily Volume = n/a
Listed on February 09, 2012


PUT Play Updates

Eastman Chemical - EMN - close: 69.78 change: +0.07

Stop Loss: 72.05
Target(s): 65.25
Current Option Gain/Loss: -26.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/13: EMN is still churning sideways. Shares are hovering just below the $70.00 mark. More conservative traders may want to lower their stop loss. EMN should see a breakout soon but it could be a breakout either direction.

*Small Positions* - Suggested Positions -

Long Apr $67.50 PUT (EMN1320p67.5) entry $2.30

03/01/13 trade opened on EMN's gap down

Entry on March 01 at $69.09
Average Daily Volume = 1.8 million
Listed on February 28, 2012


F5 Networks - FFIV - close: 92.65 change: -0.93

Stop Loss: 96.75
Target(s): 86.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/13: FFIV looking weak today with a -0.99% decline. I don't see any changes from my weekend comments. Readers may want to try and reduce their risk by lowering the stop loss.

Earlier Comments:
It's possible the $90.00 level could act as round-number, psychological support but we are going to aim for the $86.50 level.

- Suggested Positions -

Long Mar $95 PUT (FFIV1316o95) entry $3.55

02/28/13 corrected the option entry price to $3.55

Entry on February 27 at $93.50
Average Daily Volume = 1.4 million
Listed on February 26, 2012


iShares Dow Jones Transports - IYT - close: 107.77 change: +1.26

Stop Loss: 108.25
Target(s): 100.25
Current Option Gain/Loss: -31.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/13: Our IYT put play is not working. The market still acts like it wants to go higher and transports are helping lead the way. The IYT outperformed the major indices with a +1.1% gain and a new all-time high. I am suggesting we exit immediately at the opening bell tomorrow morning.

Small Positions - Suggested Positions -

Long Apr $105 PUT (IYT1320p105) entry $2.20

03/04/13 prepare to exit at the open tomorrow morning

Entry on February 28 at $106.61
Average Daily Volume = 610 thousand
Listed on February 26, 2012


CLOSED BULLISH PLAYS

Canadian Pacific Railway - CP - close: 125.24 change: +1.72

Stop Loss: 119.65
Target(s): 124.75
Current Option Gain/Loss: +89.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/13: Target achieved.

Railroad stocks continued to rally on Monday and CP pushed past the $125.00 mark. Our exit target was hit at $124.75.

- Suggested Positions -

Long Mar $120 call (MAR1316c120) entry $2.75 exit $5.20 (+89.0%)

03/04/13 target hit @ 124.75
03/02/13 new stop loss @ 119.65

chart:

Entry on February 27 at $120.25
Average Daily Volume = 795 thousand
Listed on February 23, 2012


Marathon Petroleum - MPC - close: 89.79 change: +4.78

Stop Loss: 82.25
Target(s): 89.75
Current Option Gain/Loss: +83.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/13: Target achieved.

MPC was a big winner today with a +5.6% gain. The stock opened at $84.81 this morning and after hovering near $85.00 for a little while just started climbing. It hovered near $87.00 midday and then produced an afternoon surge higher.

Our trigger to buy calls was hit at $85.25 and our exit target was hit at $89.75. Oddly enough I can't find any specific news to account for this impressive show of strength today.

Trigger @ 85.25

- Suggested Positions -

Apr $87.50 call (MPC1320d87.5) entry $2.75 exit $5.05 (+83.6%)

03/04/13 target hit at $89.75
03/04/13 triggered @ 85.25

Annotated Chart:

Entry on March 04 at $85.25
Average Daily Volume = 3.5 million
Listed on March 02, 2012


CLOSED BEARISH PLAYS

Capital One Financial - COF - close: 53.12 change: +1.25

Stop Loss: 54.55
Target(s): 48.50
Current Option Gain/Loss: -2.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/13: Over the weekend we decided that given COF's bounce from support and the market's recent strength that our best move was to exit early. The plan was to exit this morning at the open.

- Suggested Positions - *Small Positions*

Mar $52.50 PUT (COF1316o52.5) entry $1.23 exit $1.20 (-2.4%)

03/04/13 early exit at the open
03/02/13 prepare to exit on Monday morning
02/23/13 be careful here. COF is holding support at the $52 level. Shares could be poised to bounce.

chart:

Entry on February 20 at $52.25
Average Daily Volume = 5.9 million
Listed on February 19, 2012