Editor's Note:

The U.S. market managed to shrug off the disappointing January retail sales data.

CNQR hit our bullish exit target. CSC hit our entry trigger.
SJM hit our stop loss.

Several stop losses have been updated tonight.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 96.11 change: -0.06

Stop Loss: 93.85
Target(s): 99.85
Current Option Gain/Loss: +13.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/13/14: Our new play on CAT is off to a good start. The gap down this morning was a gift. Shares opened lower at $95.29 as the market started the day negative. CAT quickly rebounded and pared its losses to virtually unchanged.

The Point & Figure chart for CAT is bullish with a $117 target.

small positions - Suggested Positions -

Long MAR $97.50 call (CAT1422C97.5) entry $1.45

02/13/14 planned entry at the opening bell
CAT gapped down at $95.29

Entry on February 13 at $95.29
Average Daily Volume = 8.3 million
Listed on February 12, 2014


Salesforce.com - CRM - close: 63.13 change: +1.65

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: + 7.5%
Time Frame: Exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/13/14: Great news! CRM finally decided to participate in the market's rally. Shares bounced from their simple 10-dma this morning and then raced to a +2.6% gain and closed at new highs.

NOTE: CRM has set its earnings date for Feb. 27th. We will plan to exit prior to earnings.

Earlier Comments:
Our target is $67.50. However, we will plan on exiting prior to CRM's earnings report in late February. 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


Computer Sciences - CSC - close: 62.31 change: +0.86

Stop Loss: 59.45
Target(s): 68.00
Current Option Gain/Loss: Mar $60c + 4.9% & Jun $65c: + 1.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/13/14: Our new play on CSC has opened. The market's weakness this morning produced a spike down in CSC to $60.92 but shares quickly rebounded. By midday CSC was hitting new relative highs. Our suggested entry point was tagged at 62.15.

Earlier Comments:
Our target is $68.00. I will point out that CSC did see additional resistance in the past near the $63-64 zone back in 2007. I prefer the June calls but I'm listing March as well for shorter-term traders. FYI: The Point & Figure chart for CSC is bullish with a $78 target.

- Suggested Positions -

Long MAR $60 call (CSC1422C60) entry $2.81*

- or -

Long JUN $65 call (CSC1421F65) entry $2.27*

02/13/14 triggered @ 62.15
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 13 at $62.15
Average Daily Volume = 1.59 million
Listed on February 12, 2014


Facebook, Inc. - FB - close: 67.33 change: +2.88

Stop Loss: 63.85
Target(s): 69.75
Current Option Gain/Loss: +52.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/13/14: Shares of FB raced higher today. It was encouraging to see FB hold support near $64.00 in spite of the market's weakness this morning. After testing $64 again FB displayed relative strength with a +4.4% gain. We are adjusting our stop loss up to $63.85.

Earlier Comments:
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

02/13/14 new stop loss @ 63.85
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: 111.74 change: +0.19

Stop Loss: 108.60
Target(s): 118.50
Current Option Gain/Loss: - 2.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/13/14: As the stock market spiked lower this morning shares of FFIV gapped down at $110.25 and dipped to $108.80 before bouncing back. Shares almost didn't make it into positive territory. However, the overall trend remains a bullish one. I would be tempted to launch new positions here if both FFIV and the NASDAQ open positive tomorrow.

We are adjusting our stop loss up to $108.60.

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

02/13/14 new stop loss @ 108.60
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: 82.55 change: +0.55

Stop Loss: 79.75
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: - 8.0% & Apr $85c: - 5.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/13/14: The spike down in GILD this morning bounced at $80.90. Shares rallied back and managed to outperform the S&P 500 but not the NASDAQ. I would consider new positions now. More conservative traders might want to wait for a move above yesterday's high at $82.93.

We are adjusting our stop loss up to $79.75.

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*

02/13/14 new stop loss @ 79.75
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: 159.80 change: +0.88

Stop Loss: 155.65
Target(s): 165.00
Current Option Gain/Loss: +155.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/13/14: LMT managed to deliver another gain today with a +0.5% advance. Yet as expected the $160 level is proving to be potential resistance. The low this morning was $156.64. I am raising our stop loss up to $155.65.

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

02/13/14 new stop loss @ 155.65
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: 79.44 change: +0.44

Stop Loss: 76.40
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: + 0.0% & Apr$80c: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/13/14: Shares of STZ were pretty resilient this morning. The stock didn't see the same weakness the rest of the market did. I would still consider new positions at current levels. We will adjust our stop loss higher to $76.40.

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

02/13/14 new stop loss @ 76.40
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: 96.56 change: +0.53

Stop Loss: 94.40
Target(s): 99.85
Current Option Gain/Loss: + 8.1%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/13/14: Traders quickly bought the dip in UPS this morning and the stock closed the session up +0.55%. Meanwhile the UPS board raised the quarterly cash dividend by 8% to 67 cents a share.

Tonight we are adjusting our stop loss to $94.40.

- Suggested Positions -

Long MAR $95 call (UPS1422C95) entry $1.96

02/13/14 new stop loss @ 94.40
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


Currently we do not have any active put trades.




CLOSED BULLISH PLAYS

Concur Technologies - CNQR - close: 124.84 change: +2.55

Stop Loss: 116.75
Target(s): 125.00
Current Option Gain/Loss: +143.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/13/14: Target achieved at $125.00.

The rally in CNQR accelerated again with a +2.0% gain on Thursday. Shares hit an intraday high of $125.42.

- Suggested Positions -

MAR $120 call (CNQR1422C120) entry $3.00* exit $7.30** (+143.3%)

02/13/14 target hit @ 125.00
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


CLOSED BEARISH PLAYS

The J.M.Smucker Company - SJM - close: 95.14 change: +1.43

Stop Loss: 95.05
Target(s): 90.50
Current Option Gain/Loss: -11.2%
Time Frame: Exit PRIOR to earnings on Feb. 14th
New Positions: see below

Comments:
02/13/14: Our SJM trade has been stopped out.

We were already planning to exit this trade today at the closing bell to avoid holding over the earnings report tomorrow. However, the stock market's widespread bounce helped fuel a +1.5% gain in SJM and the stock hit our stop loss at $95.05.

- Suggested Positions -

MAR $95 PUT (SJM1422o95) entry $2.75 exit $2.44 (-11.2%)

02/13/14 stopped out
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

chart:

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