Editor's Note:

We closed our McDonald's (MCD) trade in an effort to lock in potential gains.

CR, CSC, GWR, and ASML were all triggered.

I am suggesting we exit our FFIV trade immediately.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 92.78 change: +0.49

Stop Loss: 89.45
Target(s): 97.50
Current Option Gain/Loss: +33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/11/13: Another up day for the stock market helped CERN hit another new high. Shares managed to outpace the main indices with a +0.5% gain. Readers could use this breakout past $92.50 as a new entry point but you may want to raise your stop loss!

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

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


Crane Co. - CR - close: 55.16 change: +0.19

Stop Loss: 53.40
Target(s): 58.50
Current Option Gain/Loss: -12.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/11/13: Our new trade on CR has been triggered. The stock rallied past the $55.00 level to hit new all-time highs. Shares also hit our suggested entry point at $55.25. I would still consider new positions now at current levels.

Please note that in the weekend newsletter there was an error. I listed the June $55 call option symbol and published the June $55 price but said it was the April $55 call. I am suggesting the June $55 call.

We do want to keep our position size small to limit our risk. If triggered our multi-week target is $58.50. More aggressive traders could certainly aim higher but CR doesn't move super fast.

- Suggested Positions - *Small Positions*

Long JUN $55 call (CR1322F55) entry $2.50

03/11/13 triggered at $55.25, plus we corrected the typo regarding the April versus June option. We are suggesting the June $55 call.

Entry on March 11 at $55.25
Average Daily Volume = 314 thousand
Listed on March 09, 2012


Computer Sciences Corp. - CSC - close: 50.50 change: +0.74

Stop Loss: 48.40
Target(s): 54.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: CSC continued to push higher and has now broken out past round-number resistance near the $50.00 mark. This is a new 52-week high for CSC. Our trigger to buy calls was hit at $50.25 and I would still consider new positions now at current levels.

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.

- Suggested Positions -

Long Apr $50 call (CSC1320d50) Entry $1.50

Entry on March 11 at $50.25
Average Daily Volume = 1.6 million
Listed on March 07, 2012


Green Mountain Coffee Roasters - GMCR - close: 53.99 chg: +1.12

Stop Loss: 49.95
Target(s): 54.50
Current Option Gain/Loss: +133.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: The rally in GMCR continues although you could argue it might be more short covering. The stock outperformed the market with a +2.1% gain and closed at a new multi-month highs. Our exit target is $54.50. More aggressive traders may want to aim higher. More cautious traders may want to exit now to lock in gains. I am raising our stop loss to $49.95.

- Suggested Positions -

Long Apr $55 call (GMCR1320d55) entry $1.05

03/11/13 new stop loss @ 49.95
03/09/13 new stop loss @ 49.45, adjust exit to $54.50

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


Genesee & Wyoming - GWR - close: 92.40 change: +0.18

Stop Loss: 89.65
Target(s): 98.50
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: Monday saw GWR continue to push higher and shares appear to be breaking out past short-term resistance at $92.00. Our trigger to buy calls was hit at $92.35.

I would keep your position size small to limit our risk.

NOTE: That is not a typo. The April $95 call option did not see any change today.

*Small Positions* - Suggested Positions -

Long Apr $95 call (GWR1320D95) Entry $1.40

Entry on March 11 at $92.35
Average Daily Volume = 407 thousand
Listed on March 09, 2012


Home Depot - HD - close: 71.32 change: -0.05

Stop Loss: 69.25
Target(s): 74.00
Current Option Gain/Loss: + 95.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: HD did not participate in the market's gain today. Shares churned sideways in a narrow range and essentially closed unchanged on the session. That might be due to the fact that HD is poised to begin trading ex-dividend tomorrow morning. HD has a 39-cent dividend so do not be surprised to see shares gap down tomorrow by 39-40 cents.

- Suggested Positions -

Long Apr $70 call (HD1320d70) entry $1.00

03/11/13 HD is going to go ex-dividend tomorrow (39cents)
03/09/13 new stop loss @ 69.25

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


IntercontinentalExchange - ICE - close: 159.24 change: +0.64

Stop Loss: 154.75
Target(s): 164.50
Current Option Gain/Loss: + 6.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/11/13: The headline for ICE today was news that the company plans to launch four "credit index futures contracts" in May 2013. They still need to be approved by the Commodity Future Trading Commission. I doubt this headline had much impact on today's stock price but ICE did show some volatility this morning. The stock spiked down to its simple 10-dma and just as quickly rebounded.

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


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

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: -20.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: The action in PCYC today was a bit disappointing. Shares underperformed their peers in the biotech sector and the broader market. It is worth noting that traders bought the dip at PCYC's simple 10-dma. More conservative traders may want to raise their stop loss!

Earlier Comments:
Regarding the secondary offering: On Friday it was disclosed that PCYC plans to sell another 2.2 million shares of stock at $94.20 a share and complete the offering by March 13th.

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

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


Phillips 66 - PSX - close: 65.69 change: -0.34

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: -23.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: PSX displayed some weakness this morning but traders bought the dip midday. The stock found support near $64.00 and its 10 and 20-dma. 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

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


Toyota Motors - TM - close: 104.19 change: +0.50

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: - 3.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: TM slowly drifted higher on Monday and ended the session with a +0.4% gain. 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

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


CBOE Volatility Index - VIX - close: 11.56 change: -1.03

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -52.6%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/11/13: Yet another gain for the S&P 500, now up seven days in a row, helped push the VIX lower. I have been warning readers that we could see the VIX hit the 12.00 level soon. Well the index plunged with a -8.1% decline and broke down past 12.00 to hit new multi-year lows. Our stop loss is at 11.45. If there is any follow through lower tomorrow this trade will be stopped out.

- Suggested Positions -

Long Apr $16 call (VIX1317D16) entry $1.90

03/11/13 the VIX broke down through the 12.00 level and looks poised to hit our stop loss at 11.45.
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

ASML Holdings - ASML - close: 69.98 change: +0.25

Stop Loss: 70.65
Target(s): 65.25
Current Option Gain/Loss: -23.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/11/13: ASML displayed a little bit of intraday volatility today. The stock dipped to a new low and hit $69.26 before reversing higher and trading up to tag its simple 50-dma (resistance) before paring its gains. The high today was $70.54. I am adjusting our stop loss fro $70.65 to $70.85.

Our trigger to buy puts was hit at $69.35 but readers may want to look for a new drop below $69.50 or $69.25 before initiating new bearish positions.

- Suggested Positions -

Long Apr $67.50 PUT (ASML1320p67.5) entry $2.10

Entry on March 11 at $69.35
Average Daily Volume = 1.4 million
Listed on March 09, 2012


Quest Diagnostic - DGX - close: 56.25 change: +0.31

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:
03/11/13: DGX is still trying to bounce but shares did not make it very far. The rebound stalled at its simple 20-dma. If this rally continues we'll probably drop DGX as a bearish candidate. Currently, 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)

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


F5 Networks - FFIV - close: 94.74 change: +0.73

Stop Loss: 96.75
Target(s): 86.50
Current Option Gain/Loss: -60.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/11/13: FFIV is not cooperating with us. The stock has clearly been underperforming the broader market but at the same time FFIV's downward momentum has stalled. You could argue shares are building a short-term bottom over the last several days.

I am suggesting we exit positions immediately tomorrow morning at the open. Currently the bid/ask on our March $95 puts is $1.39/1.46.

- Suggested Positions -

Long Mar $95 PUT (FFIV1316o95) entry $3.55

03/11/13 prepare to exit at the open tomorrow morning
03/09/13 only five trading days left for our March options.
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 BULLISH PLAYS

McDonald's - MCD - close: 98.89 change: +0.18

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: +150.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/11/13: MCD displayed a little bit of weakness this morning but recovered and slowly drifted higher the rest of the session. Our plan was to exit positions at the opening bell to lock in gains on our April $95 calls. I do think there is a good chance that MCD will trade close to the $100.00 mark and possibly advance toward its 2012 highs near $102.00 but we wanted to take some money off the table after MCD's recent strength.

- Suggested *Small* Positions -

Long Apr $95 call (MCD1320d95) entry $1.66 exit $4.l5 (+150%)

03/11/13 scheduled exit at the open
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