Editor's Note:

Shares of Continental Resources (CLR) and Facebook (FB) hit our bullish exit targets today.

UPS hit our stop loss.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 96.92 change: +0.71

Stop Loss: 94.85
Target(s): 99.85
Current Option Gain/Loss: +16.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/20/14: Shares of CAT garnered a new "buy" rating this morning but that news didn't stop shares from spiking below their 10-dma this morning. CAT recovered and closed up +0.7%. I am raising our stop loss to $94.85.

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

02/20/14 new stop loss @ 94.85
02/18/14 new stop loss @ 94.40
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: 63.01 change: -0.01

Stop Loss: 60.90
Target(s): 67.50
Current Option Gain/Loss: - 1.5%
Time Frame: Exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/20/14: CRM briefly traded below its 10-dma but found support near the $62.00 level intraday. The intraday bounce is encouraging. We are raising the stop loss to $60.90. More conservative traders may want to use a stop closer to today's low instead.

Earlier Comments:
Our target is $67.50. CRM has set its earnings date for Feb. 27th. We will plan to exit prior to earnings. 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*

02/20/14 new stop loss @ 60.90
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: 62.35 change: -0.19

Stop Loss: 59.45
Target(s): 68.00
Current Option Gain/Loss: Mar $60c + 0.0% & Jun $65c: + 1.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/20/14: Thursday was a relatively quiet day for CSC and the stock underperformed the broader market. CSC gapped lower but spent almost the entire session drifting sideways above the $62 level.

I am not suggesting new positions at the moment.

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


F5 Networks - FFIV - close: 110.52 change: +0.87

Stop Loss: 108.60
Target(s): 118.50
Current Option Gain/Loss: -36.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/20/14: Traders should remain cautious on our FFIV trade. The stock did keep pace with the market's rally on Thursday but FFIV was rollover this afternoon. More conservative traders may want to just exit early now. I am not suggesting new positions. Today's low was $108.92 and our stop is at $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

02/19/14 FFIV looks poised to hit our stop loss tomorrow
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: 82.81 change: +0.11

Stop Loss: 79.75
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: -11.0% & Apr $85c: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/20/14: GILD retested short-term support near $82.00 but the bounce was not that enthusiastic. I am turning more cautious on this trade.

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


Imperva Inc. - IMPV - close: 59.35 change: +1.00

Stop Loss: 57.90
Target(s): 68.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to March option expiration
New Positions: Yes, see below

Comments:
02/20/14: IMPV displayed some relative strength today with a +1.7% gain but the stock is still consolidating sideways inside the $58-60 zone.

Earlier Comments:
I am suggesting a trigger to buy calls at $60.50. If triggered our target is $68.00. FYI: The Point & Figure chart for IMPV is bullish with a $77.00 target.

Trigger @ 60.50

- Suggested Positions -

buy the MAR $60 call (IMPV1422c65)

Entry on February -- at $---.--
Average Daily Volume = 264 thousand
Listed on February 18, 2014


Monster Beverage - MNST - close: 74.70 change: +1.55

Stop Loss: 71.25
Target(s): 77.50
Current Option Gain/Loss: +52.3%
Time Frame: prepare to exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/20/14: Shares of MNST surged to new relative highs this morning and outperformed the broader market with a +2.1% gain. I am raising our stop loss to $71.25.

Please note that our time frame on this trade has changed. MNST just announced that they will report earnings on February 27th. We will plan to exit before the announcement.

Earlier Comments:
We want to keep our position size small to limit our risk.

*Small Positions * - Suggested Positions -

Long MAR $75 call (MNST1422C75) entry $2.10

02/20/14 new stop loss @ 71.25,
exit PRIOR to earnings on February 27th
02/14/14 trade opened at $71.00

Entry on February 14 at $71.00
Average Daily Volume = 1.39 million
Listed on February 13, 2014


Starbucks Corp. - SBUX - close: 73.55 change: +0.23

Stop Loss: 73.95
Target(s): 79.00 & 81.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
02/20/14: The skyrocketing rally in coffee prices paused a bit on Thursday. Shares of SBUX managed to recover from its Thursday morning lows. If SBUX doesn't show some strength soon we will likely remove this stock as an active candidate.

Earlier Comments:
We are suggesting traders wait for a breakout over $76.00. I'm listing a suggested entry point at $76.15. If triggered I am setting two potential targets. Our conservative target is $79.00. Our more aggressive target is $81.75.

Trigger @ 76.15

- Suggested Positions -

Buy the Mar $77.50 call (SBUX1422C77.5)

- or -

Buy the Apr $80 call (SBUX1419D80)

Entry on February -- at $---.--
Average Daily Volume = 8.1 million
Listed on February 15, 2014


Constellation Brands Inc. - STZ - close: 80.60 change: +0.58

Stop Loss: 77.40
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +17.6% & Apr$80c: + 9.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/20/14: STZ is still slowly drifting higher with a +0.7% gain today. The stock is nearing what could be resistance at its January highs near $81.50. I am not suggesting new positions at this time.

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

02/18/14 new stop loss @ 77.40
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




PUT Play Updates

Cigna Corp. - CI - close: 77.10 change: +0.66

Stop Loss: 79.25
Target(s): 70.50
Current Option Gain/Loss: -18.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/20/14: CI spent most of the day chopping sideways inside a $1.00 range. The stock gapped higher at $76.76 this morning. I don't see any changes from Wednesday's new play description. More conservative traders may want to wait for a new relative low under $75.00 before initiating positions. Our target is $70.50.

FYI: The Point & Figure chart for CI is bearish with a $63 target.

- Suggested Positions -

Long MAR $75 put (CI1422o75) entry $1.50

02/20/14 trade opened with CI's gap higher at $76.76

Entry on February 20 at $76.76
Average Daily Volume = 2.6 million
Listed on February 19, 2014


Pepsico, Inc. - PEP - close: 78.01 change: +0.91

Stop Loss: 80.15
Target(s): 74.00
Current Option Gain/Loss: - 9.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/20/14: Shares of PEP surged this morning following news that activist investor Nelson Peltz is renewing his push to break up PepsiCo to unlock shareholder value. The stock shot up toward $79 before paring its gains.

Investors may want to look for a new drop below $77.75 as another entry point to buy puts.

- Suggested Positions -

Long APR $75 PUT (PEP1419P75) entry $0.95*

02/18/14 triggered @ 77.85
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 18 at $77.85
Average Daily Volume = 5.7 million
Listed on February 15, 2014



CLOSED BULLISH PLAYS

Continental Resources - CLR - close: 118.70 change: +1.84

Stop Loss: 109.75
Target(s): 119.75
Current Option Gain/Loss: +65.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/20/14: Target achieved.

CLR did see a brief spike lower before $116.00 but then reversed higher and almost tagged the $120.00 level. Our exit target was hit at $119.75.

- Suggested Positions -

MAR $120 call (CLR1422C120) entry $3.00* exit $4.96 (+65.3%)

02/20/14 target hit
02/18/14 trade opened on gap higher at $114.38. Suggested trigger was $113.75.
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on February 18 at $114.38
Average Daily Volume = 1.1 million
Listed on February 15, 2014


Facebook, Inc. - FB - close: 69.63 change: +1.57

Stop Loss: 64.65
Target(s): 69.75
Current Option Gain/Loss: +144.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/20/14: Wow! I will confess I'm surprised by the performance in shares of FB today. After hours last night the stock was trading lower following news of its $19 billion acquisition of WhatsApp.

The stock did trade lower this morning but traders quickly bought the dip near short-term technical support on its rising 10-dma. FB then reversed and surged to a new all-time high and tested round-number resistance at $70.00. Our bullish target was hit at $69.75.

- Suggested Positions -

MAR $70 call (FB1422C70) entry $1.27 exit $3.10 (+144.0%)

02/20/14 target hit
02/19/14 new stop loss @ 64.65, expect a gap down tomorrow following the WhatsApp acquisition news.
02/18/14 new stop loss @ 64.25
02/13/14 new stop loss @ 63.85
02/11/14 triggered @ 64.75

chart:

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


United Parcel Service - UPS - close: 95.67 change: +1.16

Stop Loss: 94.40
Target(s): 99.85
Current Option Gain/Loss: -37.7%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/20/14: The recent pullback in UPS continued this morning. Shares managed a decent bounce with a +1.2% gain by the closing bell. Unfortunately UPS hit our stop loss at $94.40 before rebounding.

Chart watchers will note that UPS has not broken its long-term trend line of higher lows yet.

- Suggested Positions -

MAR $95 call (UPS1422C95) entry $1.96 exit $1.22* (-37.7%)

02/20/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
02/13/14 new stop loss @ 94.40
02/11/14 triggered @ 96.15

chart:

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