Editor's Note:

Monday was a relatively quiet session for the U.S. market as traders wait for Janet Yellen's first appearance before congress as Federal Reserve Chairman.

CNQR hit our entry trigger.
HAR has been removed.
CVLT was stopped out.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 117.61 change: +1.64

Stop Loss: 113.75
Target(s): 125.00
Current Option Gain/Loss: + 6.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/10/14: Our new trade on CNQR was triggered today. The stock churned sideways the first half of the session before initially rising to a new relative high. Our suggested entry point was hit at $116.65.

Earlier Comments:
Our target is $125.00.

- Suggested Positions -

Long MAR $120 call (CNQR1422C120) entry $3.00*

02/10/14 triggered @ 116.65 *option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 10 at $116.65
Average Daily Volume = 822 thousand
Listed on February 08, 2014


Salesforce.com - CRM - close: 61.04 change: -0.51

Stop Loss: 59.40
Target(s): 67.50
Current Option Gain/Loss: -17.5%
Time Frame: Exit PRIOR to earnings in late February
New Positions: see below

Comments:
02/10/14: CRM is still slightly underperforming the rest of the market. Shares spent a good portion of the day churning sideways near $60.75. Investors should stay defensive.

I am not suggesting new positions at this time.

Earlier Comments:
Our target is $67.50. However, we will plan on exiting prior to CRM's earnings report in late February (no confirmed date yet). FYI: The Point & Figure chart for CRM is bullish with an $82 target.

- Suggested Positions -

Long Mar $62.50 call (CRM1422C62.5) entry $3.30*

02/05/14 triggered @ 61.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 05 at $61.75
Average Daily Volume = 4.8 million
Listed on February 01, 2014


Facebook, Inc. - FB - close: 63.55 change: -0.77

Stop Loss: 61.85
Target(s): 69.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
02/10/14: FB did not see any follow through on Friday's surge to new highs. The stock just drifted lower today. I don't see any changes from our weekend newsletter's new play description.

Earlier Comments:
We are suggesting a trigger to buy calls at $64.75. It is conceivable that the $65.00 level is round-number resistance so more conservative traders might want to wait for a rally above $65.00 before initiating positions. Our short-term target is $69.75. More aggressive investors could aim higher since the Point & Figure chart for FB is bullish with an $89 target.

Trigger @ 64.75

- Suggested Positions -

Buy the MAR $70 call (FB1422C70)

Entry on February -- at $---.--
Average Daily Volume = 60 million
Listed on February 08, 2014


Lockheed Martin - LMT - close: 153.98 change: -1.15

Stop Loss: 149.65
Target(s): 165.00
Current Option Gain/Loss: +16.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/10/14: After a big bounce last week shares of LMT saw a little bit of profit taking today with a -0.74% decline. Watch for potential support at broken resistance near $152.00.

Earlier Comments:
Our multi-week target is $165.00. That is a little bit aggressive since the $158-160 zone could be overhead resistance. Plus our stop loss is a little bit wide at $147.00. Use small positions to limit risk.

- Suggested *small* Positions -

Long MAR $155 call (LMT1422C155) entry $2.23

02/08/14 new stop loss @ 149.65
02/06/14 triggered at $152.25

Entry on February 06 at $152.25
Average Daily Volume = 2.4 million
Listed on February 05, 2014


United Parcel Service - UPS - close: 94.73 change: -0.64

Stop Loss: 93.85
Target(s): 99.85
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
02/10/14: UPS did not see any follow through higher on Friday's breakout above its 10-dma. Today's move erased Friday's gain. If shares bounce near $93.00 we might re-evaluate our entry point strategy. Until then our plan is to wait for a move to $96.15.

Earlier Comments:
Friday's high was $95.60. We are suggesting a trigger to buy calls at $96.15. More aggressive traders may want to jump in early above $95.60. If triggered our target is $99.85.

Trigger @ 96.15

- Suggested Positions -

Buy the MAR $95 call (UPS1422C95)

Entry on February -- at $---.--
Average Daily Volume = 4.3 million
Listed on February 08, 2014




PUT Play Updates

Nu Skin Enterprises - NUS - close: 72.28 change: +0.45

Stop Loss: 76.75
Target(s): 1st target @ 63.50, 2nd target @ $55.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
02/10/14: NUS managed a midday rally but gains faded by the closing bell. I do not see any changes from the weekend newsletter's new play description.

Earlier Comments:
We are suggesting a trigger to buy puts at $69.75. Our initial target is $63.50 but we're setting a more aggressive target at $55.00. We do consider this an aggressive trade due to NUS' volatility and therefore suggest small positions to limit risk.

FYI: The Point & Figure chart for NUS is bearish with a $51 target.

Trigger @ 69.75

- Suggested Positions -

Buy the MAR $65 PUT (NUS1422o65)

- or -

Buy the JUN $60 PUT (NUS1421R60)

Entry on February -- at $---.--
Average Daily Volume = 4.6 million
Listed on February 08, 2014


Sears Holding - SHLD - close: 35.72 change: +0.22

Stop Loss: 37.55
Target(s): 30.25
Current Option Gain/Loss: + 6.7%
Time Frame: exit PRIOR to earnings in late February
New Positions: see below

Comments:
02/10/14: Hmm... SHLD traded down to $34.55 before revering higher and outperforming the market with a +0.6% gain on the session. I didn't see any news behind the bounce. We're not suggesting new positions at this time.

Earlier Comments:
I do consider this a more aggressive trade because there is so much short interest. The shorts are probably right on this stock but SHLD could still see short-term spikes if some of the weaker shorts rush to cover on any unexpected good news. The most recent data listed short interest at 54% of the 50.7 million share float.

Our target is $30.25. More aggressive traders could aim lower since the Point & Figure chart for SHLD is bearish with a $20 target. However, I would not hold over the earnings report expected in late February.

- Suggested Positions -

Long MAR $30 PUT (SHLD1422o30) entry $1.63

02/08/14 new stop loss @ 37.55
01/31/14 triggered @ $35.85

Entry on January 31 at $35.85
Average Daily Volume = 2.6 million
Listed on January 29, 2014


The J.M.Smucker Company - SJM - close: 93.70 change: +0.33

Stop Loss: 95.05
Target(s): 90.50
Current Option Gain/Loss: +34.5%
Time Frame: Exit PRIOR to earnings on Feb. 14th
New Positions: see below

Comments:
02/10/14: SJM is still trying to bounce. It is worth noting that SJM shares failed near $94.30 for the second time in two trading days. We only have three days left on this trade. More conservative traders may want to lock in potential gains now. I am moving our stop loss down to $95.05 .

I am not suggesting new positions at this time.

Earlier Comments:
Our target is $90.50. More aggressive traders could aim lower since the Point & Figure chart for SJM is bearish with an $86 target. However, our target at $90.50 may already be too optimistic. SJM is scheduled to report earnings on February 14th and we do not want to hold over the report. We have two weeks. Nimble traders might want to use the February options. I am suggesting the March $95 put.

- Suggested Positions -

Long MAR $95 PUT (SJM1422o95) entry $2.75

02/10/14 new stop loss @ 95.05, only 3 days left!
02/05/14 new stop loss @ 95.55
02/05/14 new stop loss @ 96.55
02/03/14 triggered @ 96.25

Entry on February 03 at $96.25
Average Daily Volume = 896 thousand
Listed on February 01, 2014



CLOSED BULLISH PLAYS

Harman Intl. - HAR - close: 101.84 change: -1.09

Stop Loss: 102.45
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/10/14: HAR is not cooperating. The stock is still consolidating sideways from its big, post-earnings rally. Yet HAR has underperformed the broader market two days in a row.

Our trade has not opened yet. Tonight we're removing HAR as an active candidate. I would keep an eye on it for a new high above $105. Or if the market turns south then HAR might fill the gap with a correction toward $90.00.

Trade did not open

02/10/14 removed from the newsletter. suggested trigger was $105.75

chart:

Entry on February -- at $---.--
Average Daily Volume = 1.2 million
Listed on February 06, 2014


CLOSED BEARISH PLAYS

CommVault Systems - CVLT - close: 67.85 change: +1.33

Stop Loss: 66.75
Target(s): 60.15
Current Option Gain/Loss: -66.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/10/14: CVLT was already not cooperating with us. An upgrade this morning just added insult to injury. The stock gapped open higher at $68.61, which was above our suggested stop loss at $66.75. The larger pattern for CVLT is still bearish but short-term the stock has been outperforming with a four-day bounce.

- Suggested Positions -

MAR $60 PUT (CVLT1422o60) entry $1.95* exit $0.65** (-66.6%)

02/10/14 stopped out on gap open higher. $68.61 vs. stop @ 66.75
02/08/14 CVLT is poised to hit our stop loss on Monday
02/05/14 trade opened with a gap down at $63.68
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on February 05 at $63.68
Average Daily Volume = 1.1 million
Listed on February 04, 2014