Editor's Note:

The market's major indices drifted higher on Thursday. Momentum seems to be slowing down.

GMCR and ONXX are exceptions. Both stocks displayed momentum and hit our entry triggers today.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 91.51 change: +0.60

Stop Loss: 87.25
Target(s): 97.50
Current Option Gain/Loss: +14.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/07/13: CERN's early morning spike higher faded and the stock spent the rest of the session drifting sideways. I would not be surprised to see a dip to the $89.00-90.00 levels.

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


Green Mountain Coffee Roasters - GMCR - close: 51.56 chg: +2.38

Stop Loss: 47.75
Target(s): 54.75
Current Option Gain/Loss: +55.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: This morning GMCR issued a press release that the company had inked an agreement with consumer goods giant Unilever (UN) to offer Lipton hot and iced teas through GMCR's Keurig single cup brewers. This news may be partially responsible for the stock's show of strength. GMCR gapped open higher at $50.00 and then surged to a +4.8% gain. Our entry trigger to buy calls was hit at $50.25 early this morning.

Earlier Comments:
Our short-term target is $54.75. More aggressive traders could aim for the $58.50-60.00 zone instead.

- Suggested Positions -

Long Apr $55 call (GMCR1320d55) entry $1.05

Entry on March 07 at $50.25
Average Daily Volume = 5.3 million
Listed on March 06, 2012


Home Depot - HD - close: 70.25 change: -0.23

Stop Loss: 66.40
Target(s): 74.00
Current Option Gain/Loss: +52.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: HD spent Thursday's session drifting lower toward the $70.00 level. I suspect there is still a good chance we'll see HD correct lower 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: 158.74 change: -1.61

Stop Loss: 154.75
Target(s): 164.50
Current Option Gain/Loss: + 9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07/13: After a sharp three-day rally ICE hits some profit taking today with a -1.0% decline. The dip may not be over yet. Readers could use a pullback into the $156-155 area as a new bullish entry point.

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: 97.09 change: +0.28

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: +80.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: MCD continues to show strength with another gain. The stock edged up to a new multi-month high. I am adjusting our exit target down to $99.50.

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

- Suggested *Small* Positions -

Long Apr $95 call (MCD1320d95) entry $1.66

03/07/13 adjust exit target to $99.50
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


Onyx Pharmaceuticals - ONXX - close: 83.49 change: +3.47

Stop Loss: 77.75
Target(s): 84.85
Current Option Gain/Loss: +38.1
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: As expected the rally in ONXX continued. Shares outperformed the market with a +4.3% gain. On a positive note the rally was powered by strong volume. Our trigger to buy calls was hit at $80.30.

Earlier Comments:
Trading biotech stocks always carries a bit of danger. You never know when the wrong headline can send a stock gapping lower (or higher). Therefore I am suggesting small positions to try and limit our risk. The Point & Figure chart for ONXX is bullish with a $95 target.

*Small Positions* - Suggested Positions -

Long Apr $82.50 call (ONXX1320d82.5) entry $2.75

Entry on March 07 at $80.30
Average Daily Volume = 1.3 million
Listed on March 06, 2012


Pharmacyclics Inc. - PCYC - close: 94.20 change: +0.21

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:
03/07/13: Watch out! Tomorrow could be interesting for shares of PCYC. The stock spiked lower this morning but managed to climb back into positive territory by the closing bell. The stock could gap open lower tomorrow. After the closing bell the company issued a press release. It seems that PCYC management wants to take advantage of their sky-high stock price and raise some capital. PCYC will sell an additional 2.2 million shares of stock, which is about 3.1% of the outstanding shares. Normally investors don't like it when company management dilutes their stock position so we could see PCYC spike down into the $91-90 zone tomorrow. More conservative traders may want to raise their stop loss.

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: 65.87 change: -0.18

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: - 9.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: PSX spiked down to $64.79 this morning but almost immediately bounced. Shares spent much of the day churning sideways. 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: 103.26 change: -1.19

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: - 8.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/07/13: The yen currency lost value against the dollar and the Japanese NIKKEI average was positive today. Both should have been bullish factors for shares of TM. Yet TM gapped open lower and posted a -1.1% decline, erasing yesterday's gains. I couldn't find any specific news to account for the relative weakness. Traders may want to wait and see if TM provides a dip near $102.00 before considering new bullish positions.

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: 13.06 change: -0.47

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -34.2%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/07/13: The volatility index is retreating as equities inch higher. The VIX lost -3.47% today. 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: 94.23 change: +1.12

Stop Loss: 96.75
Target(s): 86.50
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/07/13: A stock analyst issued bullish comments on FFIV today and suggested investors should buy the stock on its recent weakness. The market reacted by sending FFIV sharply higher this morning but the rally reversed at its 100-dma. The high today was $95.67. I am adjusting our stop loss lower to $96.15. I am not suggesting new positions.

I want to remind you that we have March put options that expire in six trading days. These options are going to be very 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