Editor's Note:

The rally in the S&P 500 index paused with the index struggling to get past the 1545 level twice today.

Our PSX trade has been triggered. We closed EMN at the open this morning.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 90.91 change: -1.37

Stop Loss: 87.25
Target(s): 97.50
Current Option Gain/Loss: + 7.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/13: CERN hit some profit taking today. Shares did rally to $92.96 this morning but reversed and gave back a good chunk of yesterday's gains. Look for a dip toward what should be round-number support at $90.00 or the recent highs near $89.00.

FYI: The Point & Figure chart for CERN is bullish with a long-term $141 target.

- Suggested Positions -

Long Apr $90 call (CERN1320d90) entry $3.15

Entry on March 05 at $90.25
Average Daily Volume = 916 thousand
Listed on March 02, 2012


Home Depot - HD - close: 70.48 change: +0.01

Stop Loss: 66.40
Target(s): 74.00
Current Option Gain/Loss: +71.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/13: Shares of HD struggled with resistance at $71.00 for the second time in two days today. The stock closed virtually unchanged on the session. I would not be surprised to see a pullback into the $69-68 area.

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


IntercontinentalExchange - ICE - close: 160.35 change: +1.82

Stop Loss: 154.75
Target(s): 164.50
Current Option Gain/Loss: +36.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06/13: Shares of ICE were upgraded to an "outperform" this morning and that helped fuel a rally to $162.29 intraday. The stock did pare its gains but still managed to close above the $160 level. Our call option added a whole dollar. I am not suggesting new positions at this time. We will raise our stop loss to $154.75.

Earlier Comments:
ICE can be a volatile stock so I am suggesting small positions.

*Small Positions* - Suggested Positions -

Long Apr $160 call (ICE1320d160) entry $3.30

03/06/13 new stop loss @ 154.75
03/05/13 trade opened on gap open higher at $157.08, above our trigger of $156.85

Entry on March 05 at $157.08
Average Daily Volume = 1.2 million
Listed on March 04, 2012


McDonald's - MCD - close: 96.81 change: +1.00

Stop Loss: 94.75
Target(s): 99.75
Current Option Gain/Loss: +68.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/13: Today looked similar to yesterday with a strong rally at the open in shares of MCD and then a narrow sideways churn the rest of the day. MCD is hovering near its late February high around the $96.80 area. A breakout here could spark some more short covering and I would expect a rally toward round-number resistance at $100.00.

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


Pharmacyclics Inc. - PCYC - close: 93.99 change: +1.23

Stop Loss: 87.95
Target(s): 99.00
Current Option Gain/Loss: + 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/13: Shares of PCYC remain volatile with another spike higher this morning. Shares hit $95.85 before trimming their gains. I would not chase the stock here. I would not be surprised to see a dip back toward $92.00 before it continues higher.

Earlier Comments:
PCYC can be a volatile stock so we do want to keep our position size small to limit our risk.

*Small Positions* - Suggested Positions -

Long Apr $95 call (PCYC1320d95) entry $4.80

Entry on March 05 at $91.75
Average Daily Volume = 788 thousand
Listed on March 04, 2012


Phillips 66 - PSX - close: 66.05 change: +0.28

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: - 6.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/13: Our new play on PSX is open. Shares spiked higher this morning and hit our trigger to buy calls at $66.15. I would still consider new positions now at current levels.

Our short-term target is $69.75. More aggressive traders could certainly aim higher.

- Suggested Positions -

Long Apr $67.50 call (PSX1320d67.5) entry $2.15

Entry on March 06 at $66.15
Average Daily Volume = 3.9 million
Listed on March 05, 2012


Toyota Motors - TM - close: 104.45 change: +1.15

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: +14.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/13: The rally in TM continues with a +1.1% gain on Wednesday. I don't see any changes from my previous comments.

Earlier Comments:
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.

- Suggested Positions -

Long Apr $105 call (TM1320d105) entry $2.25

Entry on March 05 at $103.25
Average Daily Volume = 686 thousand
Listed on March 02, 2012


CBOE Volatility Index - VIX - close: 13.53 change: +0.05

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -26.3%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/06/13: The S&P 500 index didn't move much today and neither did the VIX. I am not suggesting new positions at this time.

- 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

F5 Networks - FFIV - close: 93.11 change: -0.32

Stop Loss: 96.75
Target(s): 86.50
Current Option Gain/Loss: -16.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06/13: FFIV tried to rally this morning but ran out of strength near the $94.40 level. Shares are clearly not participating in the market's rally.

I want to remind you that we have March put options that expire in seven trading days. They're going to be a lot more volatile to any movement in shares of FFIV.

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


CLOSED BEARISH PLAYS

Eastman Chemical - EMN - close: 72.00 change: +0.88

Stop Loss: 72.05
Target(s): 65.25
Current Option Gain/Loss: -60.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06/13: After yesterday's bullish move higher we decided the best response was to abandon ship and exit at the open this morning. Unfortunately, EMN gapped open higher at $71.65. Today's close above all of its short-term moving averages is bullish.

*Small Positions* - Suggested Positions -

Apr $67.50 PUT (EMN1320p67.5) entry $2.30 exit $0.92 (-60.0%)

03/06/13 planned exit this morning
03/05/13 prepare to exit at the open tomorrow morning
03/01/13 trade opened on EMN's gap down

chart:

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