Editor's Note:

The U.S. stock market didn't move very much as everyone seemed to focus on the weather. The Northeast and Southeastern U.S. are supposed to be receive yet another big snow storm with a lot of ice this time.

Fed Chairman Janet Yellen's testimony before the Senate tomorrow has been postponed (it's assumed because of the weather).

GILD and STZ hit our entry triggers.
We want to exit our SJM trade tomorrow at the closing bell.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 123.38 change: +1.55

Stop Loss: 116.75
Target(s): 125.00
Current Option Gain/Loss: +76.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/12/14: The rally in CNQR continued on Wednesday with shares outperforming the market thanks to a +0.3% gain. Yet it looks like the rally did stall a bit today. I would not be surprised to see a dip toward $120. We're adjusting the stop loss higher to $116.75. More conservative traders may want to use a higher stop or lock in some gains now.

Earlier Comments:
Our target is $125.00.

- Suggested Positions -

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

02/12/14 new stop loss @ 116.75
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: 61.48 change: +0.25

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:
02/12/14: CRM continues to churn sideways. Look for potential support at the rising 10-dma or the $60.00 level. I continue to urge caution here given CRM's lack of progress. 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: 64.45 change: -0.40

Stop Loss: 61.85
Target(s): 69.75
Current Option Gain/Loss: -11.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/12/14: The rally in FB took the day off. Shares drifted sideways and retested the $64.00 level as potential short-term support. I would still consider new positions here at current levels if the S&P 500 opens positive tomorrow.

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: 111.55 change: -0.71

Stop Loss: 106.90
Target(s): 118.50
Current Option Gain/Loss: +00.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/12/14: FFIV spiked to new 52-week highs ahead of earnings from its rival Cisco Systems (CSCO). Gains faded and shares of FFIV eventually closed in negative territory. The stock lost about 25% of yesterday's big gains. Nimble traders could use a dip or a bounce near $110.00 as an alternative entry point.

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


Gilead Sciences - GILD - close: 81.92 change: +0.11

Stop Loss: 78.75
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: -15.0% & Apr $85c: -10.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/12/14: GILD managed to eke out a gain of just 20 cents today but the stock saw a spike higher to new three-week highs this morning and hit our suggested entry point at $82.50. GILD spent the rest of the market's quiet session hugging the $82.00 level. I would suggest investors wait for a new rally above $82.50 before initiating new positions.

Earlier Comments:
Our target is $89.50. I am listing both the March and the April calls. Pick a month that best suits your time frame.

FYI: The Point & Figure chart for GILD is currently bearish but a move above $83.00 should produce a new triple-top breakout buy signal.

- Suggested Positions -

Long MAR $85 call (GILD1422c85) entry $2.00

- or -

Long APR $85 call (GILD1419D85) entry $3.04*

02/12/14 triggered @ 82.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 12 at $82.50
Average Daily Volume = 13.7 million
Listed on February 11, 2014


Lockheed Martin - LMT - close: 158.92 change: +1.36

Stop Loss: 153.45
Target(s): 165.00
Current Option Gain/Loss: +128.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/12/14: LMT continued to show relative strength and extended its gains with a +0.8% advance today. Shares are above their January highs, which is bullish, but still below potential resistance at $160.00. Our plan was to lock in some gains by selling half of our position at the opening bell this morning. LMT gapped open higher at $158.71, a +$1.15 gap open. The option opened higher at $5.10. Minus the spread our exit would have been $4.80 (+115.2%).

We are raising the stop loss again, this time to $153.45.

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

02/12/14 new stop loss @ 153.45
02/12/14 planned exit to sell half this morning.
LMT gapped higher (+$1.15)
Option opened @ 5.10 -30c spread = $4.80 exit (+115.2%)
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


Constellation Brands Inc. - STZ - close: 79.00 change: +0.22

Stop Loss: 75.95
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: -11.7% & Apr$80c: - 6.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/12/14: STZ continued to push higher today and outperformed the broader market with a +0.27% gain. Our plan was to buy calls when STZ hit $79.00. I would still consider new positions now at current levels.

Earlier Comments:
The prior highs near $81.50 could be overhead resistance but we're aiming for $84.75. STZ does not move super fast so you may want to buy the April calls instead of the March calls.

Trigger @ 79.00

- Suggested Positions -

Buy the MAR $80 call (STZ1422C80) entry $1.70

- or -

Buy the APR $80 call (STZ1419D80) entry $3.30

02/12/14 triggered @ 79.00

Entry on February 12 at $79.00
Average Daily Volume = 1.5 million
Listed on February 11, 2014


United Parcel Service - UPS - close: 96.03 change: -0.13

Stop Loss: 93.85
Target(s): 99.85
Current Option Gain/Loss: - 5.1%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/12/14: UPS didn't see much follow through on yesterday's bullish move higher. The bounce seemed to stall at UPS' 20-dma. I would still consider new positions now but we might see a lower entry point on a dip near the $95.50-95.00 zone soon.

- 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: 93.71 change: +0.26

Stop Loss: 95.05
Target(s): 90.50
Current Option Gain/Loss: +16.3%
Time Frame: Exit PRIOR to earnings on Feb. 14th
New Positions: see below

Comments:
02/12/14: SJM began trading ex-dividend this morning. The quarterly cash dividend was 58 cents. Shares bounced from the morning gap down to inch up +0.2% by the closing bell.

Prepare to exit positions tomorrow (Thursday, Feb. 13th) at the closing bell.

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

02/12/14 prepare to exit positions tomorrow at the close.
02/12/14 SJM began trading ex-dividend this morning
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