Editor's Note:

The S&P 500 tagged a new all-time high on an intraday basis but failed to close above resistance.

ALK hit our entry trigger. CI hit our stop loss.


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 83.50 change: +1.96

Stop Loss: 79.45
Target(s): 88.00
Current Option Gain/Loss: +19.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/24/14: Our brand new play on ALK has been triggered. Shares broke out past resistance near $82.00 and hit our trigger to buy calls at $82.25. If you missed it consider looking for a dip since $82.00 should be new support.

The Point & Figure chart for ALK is bullish with a $98 target.

- Suggested Positions -

Long APR 85 call (ALK1419D85) entry $2.50

02/24/14 triggered @ 82.25

Entry on February 24 at $82.25
Average Daily Volume = 818 thousand
Listed on February 22, 2014


Alkermes plc. - ALKS - close: 53.28 change: +0.13

Stop Loss: 50.65
Target(s): 59.00
Current Option Gain/Loss: -44.2%
Time Frame: Plan to exit on Feb 26th at the closing bell
New Positions: see below

Comments:
02/24/14: ALKS inched higher on Monday and hit $54.23 intraday. I would not be surprised to see shares retest their 10-dma or the $52.00 level before moving much higher.

Earlier Comments:
The company's earnings announcement has now been set for February 27th. That is Thursday. I am suggesting we plan to exit on Wednesday, Feb. 26th at the close to avoid holding over the report.

Our plan was to keep the position size small to limit risk.

*small positions* - Suggested Positions -

Long MAR $55 call (ALKS1422C55) entry $2.10

02/22/14 Our time frame has unexpectedly changed.
ALKS is now expected to report earnings on Feb. 27th. We want to exit prior to the earnings announcement
02/21/14 triggered @ 53.25

Entry on February 21 at $53.25
Average Daily Volume = 986 thousand
Listed on February 20, 2014


Caterpillar Inc. - CAT - close: 97.32 change: -0.18

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: +11.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/24/14: CAT traded above the $98.00 level before paring its gains today. The close in negative territory is a small display of relative weakness. Do not be surprised if CAT dips toward its 10-dma near $$96.25.

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

02/22/14 adjust exit target to $99.65
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: 63.91 change: +0.32

Stop Loss: 61.70
Target(s): 67.50
Current Option Gain/Loss: +13.6%
Time Frame: Exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/24/14: CRM saw some volatility this morning. Shares opened lower and spiked down to $61.80 before bouncing back into positive territory. Our time is almost up. CRM has set its earnings date for Feb. 27th. That is Thursday. I am suggesting we exit positions on Wednesday at the closing bell if CRM doesn't hit our target by then.

Please note our new stop at $61.70.

- Suggested Positions -

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

02/24/14 new stop @ 61.70
02/24/14 prepare to exit on Wednesday at the close if CRM has not hit our target by then.
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: 63.40 change: +1.20

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c +28.2% & Jun $65c: +18.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/24/14: It was a good day for CSC bulls with shares bouncing from support near $62.00. The stock outperformed the market with a +1.9% gain but failed to really breakout past its recent intraday high. I am raising our stop loss to $61.75.

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*

02/24/14 new stop loss @ 61.75
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: 111.91 change: +1.63

Stop Loss: 108.60
Target(s): 118.50
Current Option Gain/Loss: -27.7%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/24/14: I've been worried about our FFIV trade but some relative strength today (+1.4%) helped soothe some of those fears. Shares did fail at short-term resistance near $114.00.

I am not suggesting new positions at this time.

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: 83.57 change: +0.98

Stop Loss: 79.75
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: - 7.5% & Apr $85c: + 1.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24/14: GILD pushes higher with a +1.1% gain but is still struggling with short-term resistance near $84.00.

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: 61.85 change: -0.07

Stop Loss: 58.65
Target(s): 68.00
Current Option Gain/Loss: + 5.8%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
02/24/14: It was a bit surprising to see IMPV not participate in the market rally today but shares were up big on Friday so a little profit taking is understandable.

Earlier Comments:
The Point & Figure chart for IMPV is bullish with a $77.00 target.

- Suggested Positions -

Long MAR $60 call (IMPV1422c60) entry $3.40*

02/22/14 new stop loss @ 58.65
*option entry price is an estimate since the option did not trade at the time our play was opened.
02/21/14 triggered @ 60.50

Entry on February 21 at $60.50
Average Daily Volume = 264 thousand
Listed on February 18, 2014


Monster Beverage - MNST - close: 74.52 change: -0.27

Stop Loss: 71.75
Target(s): 76.50
Current Option Gain/Loss: +33.3%
Time Frame: prepare to exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/24/14: Readers may want to exit early now. MNST did not participate in the market rally today and we only have two days left. Our plan is to exit on Wednesday at the closing bell to avoid holding over earnings this Thursday.

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

02/24/14 readers may want to exit early now.
02/22/14 adjust exit target to $76.50
02/22/14 new stop loss @ 71.75
prepare to exit on Wednesday, Feb. 26th
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


Rockwell Automation - ROK - close: 120.56 change: +1.24

Stop Loss: 117.90
Target(s): 129.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
02/24/14: ROK set a new closing high today. Yet you'll notice the rally stalled at intraday resistance near $121.00.

The January 21st intraday high was $121.01. I am suggesting a trigger to buy calls at $121.25. If triggered our target is $129.00.

Trigger @ $121.25

- Suggested Positions -

Buy the APR $125 call (ROK1419D125) current ask $1.85

Entry on February -- at $---.--
Average Daily Volume = 1.1 million
Listed on February 22, 2014


Constellation Brands Inc. - STZ - close: 81.08 change: +0.73

Stop Loss: 77.80
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +29.4% & Apr$80c: +15.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/24/14: STZ tagged a new all-time high on an intraday basis. The trend is up but I remain cautious since the $81.00-81.50 zone remains resistance. 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.

- Suggested Positions -

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

- or -

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

02/22/14 new stop loss @ 77.80
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

LinkedIn - LNKD - close: 199.59 change: +6.97

Stop Loss: 200.50
Target(s): 171.00
Current Option Gain/Loss: -52.8%
Time Frame: exit prior to March expiration
New Positions: see below

Comments:
02/24/14: A market-wide rally on Monday didn't help our new LNKD put play. Plus most of the Internet-related stocks were showing relative strength today. Today's bounce in LNKD may also be a reaction to news that LNKD plans to open in China soon. Naturally the company wants access to China's 140 million professionals.

LNKD opened at $191.72 and then surged toward resistance near $200.00. If there is any follow through higher tomorrow then LNKD will hit our stop loss at $200.50.

*small positions* - Suggested Positions -

Long Mar $180 PUT (LNKD1422o180) entry $3.50*

02/24/14 trade opened at $191.72
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 24 at $191.72
Average Daily Volume = 4.0 million
Listed on February 22, 2014


Pepsico, Inc. - PEP - close: 78.88 change: +0.66

Stop Loss: 80.15
Target(s): 74.00
Current Option Gain/Loss: -34.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/24/14: PEP rallied with the market on Monday and hit an intraday high of $79.59. Shares did pare their gains. If the stock posts a decline tomorrow we can use it as a new entry point for bearish positions.

- 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 BEARISH PLAYS

Cigna Corp. - CI - close: 79.19 change: +1.85

Stop Loss: 79.25
Target(s): 70.50
Current Option Gain/Loss: -68.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/24/14: CI produced a big move higher today and traded above technical resistance at its simple 200-dma. Our stop was hit at $79.25.

- Suggested Positions -

MAR $75 put (CI1422o75) entry $1.50 exit $0.48 (-68.0%)

02/24/14 stopped out
02/20/14 trade opened with CI's gap higher at $76.76

chart:

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