Editor's Note:

The stock market liked what it heard from Janet Yellen's testimony before congress today. The new Fed Chairman seemed to echo Bernanke's strategy and stocks rallied.

FB, FFIV, and UPS hit our entry triggers.
NUS has been removed. SHLD was stopped out.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 121.16 change: +3.55

Stop Loss: 114.75
Target(s): 125.00
Current Option Gain/Loss: +50.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/11/14: The rally in CNQR is picking up speed. The widespread market gains today helped CNQR surge +3.5% and breakout past the $120 level. We are adjusting the stop loss higher to $114.75.

Earlier Comments:
Our target is $125.00.

- Suggested Positions -

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

02/11/14 new stop loss @ 114.75
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: 61.23 change: +0.19

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: -16.0%
Time Frame: Exit PRIOR to earnings in late February
New Positions: see below

Comments:
02/11/14: I am reiterating my warning on CRM. The stock is not participating in the market's rally. That's a warning signal. We will adjust our stop loss to $59.90. More conservative traders may want to just exit early now.

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*

02/11/14 new stop loss @ 59.90
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: 64.85 change: +1.30

Stop Loss: 61.85
Target(s): 69.75
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/11/14: FB displayed some relative strength today with a +2.0% gain versus the market's +1.0% advance today. Tuesday's rally in FB is a new all-time high for the stock and shares hit our suggested entry point to buy calls at $64.75.

Earlier Comments:
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.

- Suggested Positions -

Long MAR $70 call (FB1422C70) entry $1.27

02/11/14 triggered @ 64.75

Entry on February 11 at $64.75
Average Daily Volume = 60 million
Listed on February 08, 2014


F5 Networks - FFIV - close: 112.26 change: +2.76

Stop Loss: 106.90
Target(s): 118.50
Current Option Gain/Loss: +17.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/11/14: FFIV's rally continued on Tuesday with a breakout past resistance and a new multi-year high. Shares are now up four days in a row (just like the major indices). Today saw FFIV hit our suggested entry point at $111.10.

Earlier Comments:
Our multi-week target is $118.50. We'll start with a stop loss at $106.90. More conservative traders will want to consider a higher stop loss.

- Suggested Positions -

Long MAR $115 call (FFIV1422C115) entry $3.14

02/11/14 triggered @ 111.10

Entry on February 11 at $111.10
Average Daily Volume = 2.8 million
Listed on February 10, 2014


Lockheed Martin - LMT - close: 157.56 change: +3.58

Stop Loss: 151.90
Target(s): 165.00
Current Option Gain/Loss: +92.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/11/14: LMT continues to show relative strength and added over 3 1/2 points. Today's move is important because shares are challenging their prior highs and potential resistance near $158.00.

I am suggesting we immediately sell half of our position at the opening bell tomorrow to lock in potential gains. We'll keep the second half and aim for $165.00 on LMT. We are also raising the stop loss to $151.90.

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

- Suggested *small* Positions -

Long MAR $155 call (LMT1422C155) entry $2.23

02/11/14 Sell Half now to lock in potential gains
(sell half of our position tomorrow morning, Feb. 12, at the open)
02/11/14 new stop loss @ 151.90
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: 96.16 change: +1.43

Stop Loss: 93.85
Target(s): 99.85
Current Option Gain/Loss: - 1.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/11/14: UPS is starting to see some follow through on its recent bounce. The stock added +1.5% today, which actually outperformed the transportation average's +1.15% gain. Our suggested entry point was hit at $96.15.

- Suggested Positions -

Long MAR $95 call (UPS1422C95) entry $1.96

02/11/14 triggered @ 96.15

Entry on February 11 at $96.15
Average Daily Volume = 4.3 million
Listed on February 08, 2014




PUT Play Updates

The J.M.Smucker Company - SJM - close: 94.03 change: +0.33

Stop Loss: 95.05
Target(s): 90.50
Current Option Gain/Loss: +23.6%
Time Frame: Exit PRIOR to earnings on Feb. 14th
New Positions: see below

Comments:
02/11/14: Yesterday SJM added 33 cents. Today SJM added 33 cents, so that's not a typo. Fortunately SJM did underperformed the market with a +0.35% gain versus the S&P 500's +1.1% gain today. Naturally if the market rally continues it will be harder to make money on bearish plays.

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 BEARISH PLAYS

Nu Skin Enterprises - NUS - close: 75.75 change: +3.47

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: see below

Comments:
02/11/14: Shares of NUS have not been immune to the market's widespread bounce. Plus today there were rumors that NUS might actually receive a positive ruling from Chinese regulators.

The stock spiked toward resistance near $80.00 and then pared its gains to just +4.8% today.

Our trade has not opened yet and it seems unlikely that NUS will hit our suggested trigger at $69.75 soon. Therefore we are removing NUS as a potential trade.

Trade did not open

02/11/14 removed from the newsletter
suggested trigger was $69.75

chart:

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


Sears Holding - SHLD - close: 38.72 change: +3.00

Stop Loss: 37.55
Target(s): 30.25
Current Option Gain/Loss: -19.0%
Time Frame: exit PRIOR to earnings in late February
New Positions: see below

Comments:
02/11/14: Ouch! SHLD outperformed the rest of the market with a +8.4% gain today. The move looks like short covering and hit our stop loss at $37.55.

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.

- Suggested Positions -

MAR $30 PUT (SHLD1422o30) entry $1.63 exit $1.32* (-19.0%)

02/11/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
02/08/14 new stop loss @ 37.55
01/31/14 triggered @ $35.85

chart:

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