Editor's Note:

Shares of Onyx Pharmaceuticals (ONXX) hit our bullish target on Friday.

MCD also displayed significant strength on Friday and we want to exit our MCD positions on Monday.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 92.29 change: +0.78

Stop Loss: 89.45
Target(s): 97.50
Current Option Gain/Loss: +26.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/09/13: CERN rebounded again on Friday with a +0.8% gain. The trend of higher lows continues. If the market cooperates we should see CERN rally to new highs this week. I am raising our stop loss up to $89.45.

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

03/09/13 new stop loss @ 89.45

chart:

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


Computer Sciences Corp. - CSC - close: 49.76 change: -0.09

Stop Loss: 48.40
Target(s): 54.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
03/09/13: CSC retreated from resistance near the $50.00 level on Friday morning. Fortunately traders bought the dip midday and shares pared their losses. We are waiting on a bullish breakout past resistance. I am suggesting a trigger to buy calls at $50.25. If triggered our target is $54.50.

FYI: The Point & Figure chart for CSC is bullish with a $59 target. Plus, CSC's next dividend (20 cents) is payable on April 15, 2013 to shareholders on record as of March 18th.

Trigger @ 50.25

- Suggested Positions -

buy the Apr $50 call (CSC1320d50) current ask $1.30

chart:

Entry on March -- at $---.--
Average Daily Volume = 1.6 million
Listed on March 07, 2012


Green Mountain Coffee Roasters - GMCR - close: 52.87 chg: +1.31

Stop Loss: 49.45
Target(s): 54.50
Current Option Gain/Loss: +104.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: Thursday's rally continued into Friday with GMCR adding +2.5% and hitting new multi-month highs. I would not chase it here. If you're looking for a new entry point, wait for a pullback. We are raising the stop loss to $49.45. More conservative traders may want to take profits now since our call option has doubled. I am adjusting our exit target down to $54.50.

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

03/09/13 new stop loss @ 49.45, adjust exit to $54.50

chart:

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


Home Depot - HD - close: 71.37 change: +1.12

Stop Loss: 69.25
Target(s): 74.00
Current Option Gain/Loss: +106.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: Home Depot has broken out past resistance at $70.00 to close at new all-time, historic highs. Our call option has doubled and more conservative traders may want to take profits now. We are aiming for the $74.00 level. I am adjusting our stop loss to $69.25.

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

03/09/13 new stop loss @ 69.25

chart:

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


IntercontinentalExchange - ICE - close: 158.60 change: -0.14

Stop Loss: 154.75
Target(s): 164.50
Current Option Gain/Loss: + 3.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/09/13: Shares of ICE underperformed the market on Friday and closed virtually unchanged for the session. For the last day and a half the stock has found short-term support near the $158.00 level. I am not suggesting new positions at this time. More conservative traders may want to consider a higher stop loss but remember that ICE can be a volatile stock.

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

chart:

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


McDonald's - MCD - close: 98.71 change: +1.62

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: +153.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: On Friday morning MCD announced its February 2013 same-store sales data. The results were -1.5% compared to +7.5% a year ago and -1.9% the prior month (January 2013). Of course last year February had 29 days so if you back out the extra day then February 2013 same-store sales were up +1.7%. This news was enough to send the stock higher. Shares gapped open at $98.13 and closed at new multi-month highs with a +1.6% gain on Friday.

Our option is up +153%. I am suggesting we go ahead and exit positions now on Monday morning at the open to lock in gains. More aggressive traders could aim for the $99.50-100.00 zone or even consider aiming for the 2012 highs near $102 but keep in mind that MCD is looking short-term overbought.

- Suggested *Small* Positions -

Long Apr $95 call (MCD1320d95) entry $1.66

03/09/13 prepare to exit on Monday to lock in gains.
current bid for our option is $4.20
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

chart:

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


Pharmacyclics Inc. - PCYC - close: 92.25 change: -1.95

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: On Thursday night I warned readers to exit a drop in PCYC on Friday morning in reaction to news the company was planning to sell an additional 2.2 million shares of stock (3.1% of shares outstanding). Surprisingly PCYC did not immediately sell-off. The stock hovered near the $94.00 the first half of Friday's session and only gave into profit taking later in the day.

It was revealed that PCYC plans to sell these 2.2 million shares of stock at $94.20 a share and complete the offering by March 13th. At this point I would not be surprised to see a decline into the $91-90 zone. Nimble traders could buy a dip or a bounce near 490.00 or its 10-dma (90.75). I am raising our stop loss to $89.25.

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

03/09/13 new stop loss @ 89.25

chart:

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


Phillips 66 - PSX - close: 66.03 change: +0.16

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: -13.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: Friday was a very quiet day for shares of PSX. The stock hovered on either side of $66.00 all day long. Friday's high was $66.28. Readers might want to consider waiting for a rally past $66.35 before initiating new positions.

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

chart:

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


Toyota Motors - TM - close: 103.69 change: +0.43

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: - 6.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: TM is still trading near the bottom of its bullish channel. It's rumored that Japan is poised to start its own quantitative easing program soon. Combine that with the country's recent attempts to keep the yen currency lower and it should all be bullish for Toyota's exports.

I would still consider new bullish positions at current levels in TM. Or you could wait for a dip into the $103-102 zone but there is no guarantee TM will see such a dip.

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

chart:

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


CBOE Volatility Index - VIX - close: 12.59 change: -0.47

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -36.8%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/09/13: I cautioned readers a few days ago that if the stock market continued to climb we could see the VIX retest its recent lows. The volatility index is definitely getting close. It certainly looks like the VIX could hit the 12.00 level soon. We have a stop loss at 11.45. More aggressive traders may want to widen their stop. Meanwhile a dip to or a bounce from the 12.00 area can be used as a new bullish entry point.

- Suggested Positions -

Long Apr $16 call (VIX1317D16) entry $1.90

02/25/13 adjust exit target to 19.90

chart:

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


PUT Play Updates

Quest Diagnostic - DGX - close: 55.94 change: +0.52

Stop Loss: 56.25
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/09/13: There was no follow through on DGX's decline from Thursday. Overall I don't see any changes from my prior comments. We're currently waiting for a breakdown to new lows.

The Feb. 26th low was $55.16. I am suggesting a trigger to open bearish positions at $54.85, so about 30 cents under that low. If triggered our target is $51.00. More aggressive traders could aim lower. FYI: The Point & Figure chart for DGX is bearish with a $50 target.

Trigger @ 54.85

- Suggested Positions -

buy the Apr $55 PUT (DGX1320p55)

chart:

Entry on March -- at $---.--
Average Daily Volume = 1.2 million
Listed on March 07, 2012


F5 Networks - FFIV - close: 94.01 change: -0.22

Stop Loss: 96.75
Target(s): 86.50
Current Option Gain/Loss: -40.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/09/13: FFIV gapped open higher on Friday morning but traders quickly sold the strength and shares fell toward the $94.00 level. The stock was stuck there, near $94.00, the rest of the session. I am not suggesting new positions.

I want to remind you that we have March put options that expire in five 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

03/09/13 only five trading days left for our March options.
02/28/13 corrected the option entry price to $3.55

chart:

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


CLOSED BULLISH PLAYS

Onyx Pharmaceuticals - ONXX - close: 85.65 change: +2.16

Stop Loss: 77.75
Target(s): 84.85
Current Option Gain/Loss: +76.3
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/09/13: Target achieved.

The bullish surge in shares of ONXX continued on Friday and the stock challenged its January 2013 highs. Our exit target at $84.85 was hit along the way.

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.

*Small Positions* - Suggested Positions -

Apr $82.50 call (ONXX1320d82.5) entry $2.75 exit $4.85 (+76.3%)

03/08/13 target hit

chart:

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