Editor's Note:

All the major U.S. market indices delivered gains on Thursday. The S&P 500 index is only a couple of points away from a new historic, closing high.

KSU was triggered today. VIX and ASML were stopped out. I have removed WHR and DGX. We want to close our PSX trade at the open tomorrow.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 93.00 change: +0.09

Stop Loss: 89.85
Target(s): 97.50
Current Option Gain/Loss: +33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/14/13: CERN's performance today looks almost identical to yesterday with a narrow sideways churn. Actually CERN has been churning sideways for about three and a half days. The lack of upward momentum in CERN is a concern while we watch the major market indices tick higher. I am adjusting our stop loss to $89.85. I am not suggesting new positions.

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

03/14/13 new stop loss @ 89.85
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: 55.96 change: +0.56

Stop Loss: 53.40
Target(s): 58.50
Current Option Gain/Loss: + 4.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/14/13: CR managed to outperform the market with a +1.0% gain. Shares closed at another new high. Readers may want to start adjusting their stop loss higher.

Earlier Comments:
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: 49.78 change: +0.59

Stop Loss: 48.40
Target(s): 54.50
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: CSC began trading ex-dividend today for its 20-cent dividend. Surprisingly the stock spiked higher at the open and then spent the rest of the session slowly consolidating lower. Shares still outperformed the market with a +1.1% gain.

- 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


Chart Industries - GTLS - close: 82.53 change: +0.02

Stop Loss: 79.75
Target(s): 87.50
Current Option Gain/Loss: -6.1%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/14/13: Thursday was a forgettable session for shares of GTLS. The early gains faded and the stock closed virtually unchanged on the day. I don't see any changes from my prior comments.

- Suggested Positions -

Long Apr 85 call (GTLS1320D85) entry $2.45

Entry on March 13 at $82.55
Average Daily Volume = 510 thousand
Listed on March 12, 2012


Genesee & Wyoming - GWR - close: 94.14 change: +1.14

Stop Loss: 89.65
Target(s): 98.50
Current Option Gain/Loss: +21.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: The railroad industry displayed relative strength on Thursday. Shares of GWR added +1.2% and closed at a new high. More conservative traders may want to start adjusting their stop loss higher.

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

*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: 70.24 change: -0.52

Stop Loss: 69.75
Target(s): 74.00
Current Option Gain/Loss: + 43.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: The Dow Jones Industrial Average posted its 10th gain in a row. That is a feat that hasn't happened since the 1990s. Yet the DJIA did so without any help from shares of HD. The stock has been slowly drifting lower the last four days and today HD displayed significant relative weakness with a -0.7% decline.

Our potential, unrealized gains on our call have been cut in half. I am still expecting support at the $70.00 mark but readers might want to exit early now to lock in a gain. We will raise the stop loss to $69.75.

- Suggested Positions -

Long Apr $70 call (HD1320d70) entry $1.00

03/14/13 new stop loss @ 69.75
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: 162.34 change: +2.93

Stop Loss: 156.45
Target(s): 164.50
Current Option Gain/Loss: +51.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14/13: A strong day for the financials saw shares of ICE surge to new four-year highs. The stock added +1.8% today. I am raising our stop loss to $156.45.

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

03/14/13 new stop loss @ 156.45
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


Kansas City Southern - KSU - close: 108.58 change: +1.56

Stop Loss: 104.75
Target(s): 114.00
Current Option Gain/Loss: +14.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/14/13: KSU is another railroad stock showing relative strength. Shares opened at $107.24 and surged past recent resistance to breakout to new all-time highs. Our trigger to buy calls was hit at $107.50.

Earlier Comments:
We want to keep our position size small to limit our risk since the transportation sector and KSU are arguably overbought at current levels.

- Suggested Positions -

Long Apr $110 call (KSU1320D110) entry $2.50

Entry on March 14 at $107.50
Average Daily Volume = 984 thousand
Listed on March 13, 2012


Pharmacyclics Inc. - PCYC - close: 91.60 change: +0.00

Stop Loss: 89.90
Target(s): 99.00
Current Option Gain/Loss: -31.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: I am growing worried with our PCYC trade. The market's major indices are pushing to new highs. Yet shares of PCYC closed unchanged on the session. The lack of participation could be a warning signal. Yesterday's intraday low was $90.00. I am raising our stop loss up to $89.90. I am not suggesting new positions.

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

03/14/13 new stop loss @ 89.90, PCYC not participating with the market's rally
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: 64.95 change: +0.40

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: -44.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: Thursday was an update for the market and the energy sector. Shares of PSX added +0.6% yet the stock seems to be creating a short-term bearish trend of lower highs. We are growing concerned with PSX's recent performance and tonight we're suggesting an early exit at the open tomorrow morning.

- Suggested Positions -

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

03/14/13 prepare to exit at the open tomorrow morning

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


Toyota Motors - TM - close: 103.54 change: +0.59

Stop Loss: 99.95
Target(s): 108.00
Current Option Gain/Loss: -28.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: TM rebounded with a +0.5% gain. I remain bullish on TM but readers may want to wait for a little more confirmation with a follow through gain tomorrow before considering new positions (versus buying a dip near $102).

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


PUT Play Updates

SINA Corp. - SINA - close: 48.63 change: +0.16

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: -11.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14/13: Thursday proved to be another quiet day for shares of SINA. Yesterday's low was $47.75. Readers may want to wait for SINA to hit a new low before initiating new bearish positions.

- Suggested Positions -

Long APR $47.50 PUT (SINA1320P47.5) entry $2.11

Entry on March 13 at $47.75
Average Daily Volume = 2.7 million
Listed on March 12, 2012


Vitamin Shoppe, Inc. - VSI - close: 52.12 change: +0.93

Stop Loss: 51.55
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/14/13: VSI is not cooperating. Shares added +1.8% today. Yet in spite of the big bounce VSI remains inside Tuesday's trading range. It's not a breakout or reversal just yet. There is no change from my prior comments.

I am suggesting a trigger to buy puts at $49.75. If triggered our target is $45.50.

Trigger @ 49.75

- Suggested Positions -

buy the Apr $50 PUT (VSI1320P50)

Entry on March -- at $---.--
Average Daily Volume = 736 thousand
Listed on March 11, 2012


CLOSED BULLISH PLAYS

CBOE Volatility Index - VIX - close: 11.30 change: -0.53

Stop Loss: 11.45
Target(s): 19.90
Current Option Gain/Loss: -50.0%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
03/14/13: The stock market's continued push higher has crushed the VIX to new multi-year lows. Our stop loss was hit at 11.45 today.

- Suggested Positions -

Apr $16 call (VIX1317D16) entry $1.90 exit $0.95 (-50.0%)

03/14/13 stopped out
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

chart:

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


Whirlpool Corp. - WHR - close: 117.49 change: -0.64

Stop Loss: 115.75
Target(s): 128.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/14/13: WHR looked so promising a few days ago. Shares were poised to breakout past resistance near $120. Yet the upward momentum has stalled. If WHR cannot break out now, with the major indices in rally mode, when is it going to break out? Our trade has not opened. We are removing WHR as a candidate.

Trade did not open.

03/14/13 removed from the newsletter

chart:

Entry on March -- at $---.--
Average Daily Volume = 1.4 million
Listed on March 11, 2012


CLOSED BEARISH PLAYS

ASML Holdings - ASML - close: 71.80 change: +2.11

Stop Loss: 70.65
Target(s): 65.25
Current Option Gain/Loss: -52.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/14/13: The semiconductor sector surged higher today. The $SOX semiconductor index, the SMH semiconductor ETF, and shares of ASML all gapped open higher. ASML opened at $70.88 and rallied to a +3.0% gain by the close. Our stop loss was at $70.65 so the trade was closed this morning.

- Suggested Positions -

Apr $67.50 PUT (ASML1320p67.5) entry $2.10 exit $1.00 (-52.3%)

03/14/13 stopped out on gap open higher

chart:

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


Quest Diagnostic - DGX - close: 56.50 change: +0.51

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:
03/14/13: We've been waiting for DGX to breakdown below support but shares are not cooperating. I am removing DGX from the newsletter. Our trade did not open.

Trade did not open.

03/14/13 removed from the newsletter

chart:

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