Editor's Note:

The U.S. stock market rally stalled on option expiration Friday.

HD and PCYC were stopped out. PSX was closed on Friday morning.


Current Portfolio:


CALL Play Updates

Cerner Corp. - CERN - close: 92.78 change: -0.22

Stop Loss: 89.85
Target(s): 97.50
Current Option Gain/Loss: +26.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/16/13: CERN continues to churn sideways. Three and a half days has now turned to four and a half with CERN stuck inside a narrow trading range. Lack of momentum while the major market indices hit new highs is a potential warning signal. 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

chart:

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


Continental Resources - CLR - close: 92.70 change: +0.41

Stop Loss: 89.90
Target(s): 96.75
Current Option Gain/Loss: - 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/16/13: Bullish analyst comments and a $110 price target helped push CLR to new relative highs on Friday. The stock gapped higher at $92.50 and spiked to $93.99 intraday. Unfortunately CLR gave back most of those gains. It looks like CLR should have short-term support at $92.00 and $90.00.

Our target is $96.75, which is just below the old, all-time high of $97.19 from February 2012. More aggressive traders may want to aim for the $99-100 zone instead.

- Suggested Positions -

Long Apr $95 call (CLR1320D95) entry $1.70

chart:

Entry on March 15 at $92.50
Average Daily Volume = 1.1 million
Listed on March 14, 2012


Crane Co. - CR - close: 56.10 change: +0.14

Stop Loss: 53.40
Target(s): 58.50
Current Option Gain/Loss: +10.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
03/16/13: CR continued to rally on Friday, stretching its gains to seven days in a row. If you are looking for a new bullish entry point then consider waiting for a dip near the $55.00 level. 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.

chart:

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


Computer Sciences Corp. - CSC - close: 48.58 change: -1.20

Stop Loss: 48.40
Target(s): 54.50
Current Option Gain/Loss: -56.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: Bullish CSC traders may want to abandon ship immediately. The stock underperformed the market on Friday with a -2.4% decline. Shares are only 18 cents away from our stop loss at $48.40. There is a chance that CSC will bounce from short-term technical support at its simple 20-dma but readers will want to seriously consider an early exit now.

- Suggested Positions -

Long Apr $50 call (CSC1320d50) Entry $1.50

03/16/13 CSC is underperforming and looks poised to hit our stop loss. Traders may want to exit early now.

chart:

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


Chart Industries - GTLS - close: 82.00 change: -0.53

Stop Loss: 79.75
Target(s): 87.50
Current Option Gain/Loss: -20.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/16/13: GTLS underperformed the market on Friday with a -0.6% decline. Yet traders did buy the dip at its rising 10-dma. Readers may want to wait for a bounce above $82.50 before considering new bullish positions.

- Suggested Positions -

Long Apr 85 call (GTLS1320D85) entry $2.45

chart:

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


Genesee & Wyoming - GWR - close: 93.80 change: -0.34

Stop Loss: 89.65
Target(s): 98.50
Current Option Gain/Loss: +10.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: GWR spiked to another new high on Friday morning. The gains didn't last as profit taking pulled the stock back into the $93.50-94.00 zone for most of the session. I am not suggesting new positions at current levels. Do not be surprised to see a dip toward $92.00. 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

chart:

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


IntercontinentalExchange - ICE - close: 160.98 change: -1.36

Stop Loss: 157.45
Target(s): 164.50
Current Option Gain/Loss: +24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/16/13: After Thursday's outperformance in ICE the stock was hit with some profit taking on Friday morning. Traders bought the dip near $160.00. Nimble traders may want to consider buying a bounce from here but if you do I would use a tighter stop loss. Please note we are raising our stop loss to $157.45.

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

03/16/13 new stop loss @ 157.45
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

chart:

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: + 0.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/16/13: Both KSU and the Dow Jones Transportation Average spent Friday's session churning sideways. This may have been a reflection of Friday's option expiration. If KSU were to see a dip we can look for short-term support at the rising 10-dma, currently near $105.85.

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

chart:

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


Toyota Motors - TM - close: 103.93 change: +0.39

Stop Loss: 101.75
Target(s): 108.00
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: TM bounced off support near the bottom of its bullish channel on Friday. An update for the Japanese NIKKEI (+1.5%) didn't hurt either. TM does look poised to rally and I would be tempted to buy calls on Friday's move higher. I am raising our stop loss to $101.75.

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

03/16/13 new stop loss @ 101.75

chart:

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


PUT Play Updates

SINA Corp. - SINA - close: 48.27 change: -0.36

Stop Loss: 50.25
Target(s): 42.50
Current Option Gain/Loss: - 9.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/16/13: The sideways consolidation in shares of SINA is narrowing. The stock appears to be coiling for a breakdown lower. I would still wait for a new drop under $47.75 before initiating new positions.

- Suggested Positions -

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

chart:

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


Vitamin Shoppe, Inc. - VSI - close: 52.15 change: +0.03

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:
03/16/13: VSI tried to rally again on Friday but shares reversed at their 300-dma. The stock closed virtually unchanged on the session. We're still waiting for a breakdown below support.

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)

chart:

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


CLOSED BULLISH PLAYS

Home Depot - HD - close: 69.05 change: -1.19

Stop Loss: 69.75
Target(s): 74.00
Current Option Gain/Loss: + 10.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: We've been concerned about HD's recent short-term weakness. That weakness was exaggerated on Friday with a -1.69% drop. I couldn't find any worthy reasons for the sell-off. Shares gapped open lower near $70.00 and then dropped. Our stop loss was hit at $69.75.

- Suggested Positions -

Apr $70 call (HD1320d70) entry $1.00 exit $1.10 (+10.0%)

03/15/13 stopped out at $69.75
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

chart:

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


Pharmacyclics Inc. - PCYC - close: 89.91 change: -1.69

Stop Loss: 89.90
Target(s): 99.00
Current Option Gain/Loss: -47.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: I cautioned readers on Thursday that PCP's failure to follow the market higher this past week was a warning signal. We raised our stop loss to $89.90. PCYC continued to underperform on Friday with a -1.8% decline. Shares did breakdown below what should have been support at $90.00 and the stock hit our 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 -

Apr $95 call (PCYC1320d95) entry $4.80 exit $2.50 (-47.9%)

03/15/13 stopped out
03/14/13 new stop loss @ 89.90, PCYC not participating with the market's rally
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: 64.15 change: -0.80

Stop Loss: 63.75
Target(s): 69.75
Current Option Gain/Loss: -51.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/16/13: Shares of PSX have not been cooperating. On Thursday night we decided the best move was to exit early and close positions on Friday morning. The stock gapped open lower at $64.49 on Friday.

- Suggested Positions -

Long Apr $67.50 call (PSX1320d67.5) entry $2.15 exit $1.05 (-51.1%)

03/15/13 planned exit
03/14/13 prepare to exit at the open tomorrow morning

chart:

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