Editor's Note:

Global stock markets were down almost across the board today but losses in the U.S. were relatively mild.

CNC and ROK hit our entry triggers. MNST and LNKD were stopped out.

We want to exit our ALKS and CRM trades tomorrow (see update for details).


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 85.09 change: +1.59

Stop Loss: 81.75
Target(s): 88.00
Current Option Gain/Loss: +44.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/25/14: Bullish analyst comments helped ALK surge to new highs. Shares hit $86.53 before paring their gains. We will raise the stop loss up to $81.75 since broken resistance at $82.00 should offer some support.

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

- Suggested Positions -

Long APR 85 call (ALK1419D85) entry $2.50

02/25/14 new stop loss @ 81.75
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: 53.82 change: +0.54

Stop Loss: 51.90
Target(s): 59.00
Current Option Gain/Loss: - 9.5%
Time Frame: Plan to exit on Feb 26th at the closing bell
New Positions: see below

Comments:
02/25/14: ALKS continues to slip higher. However, our trade is almost over. The plan is to exit our ALKS position tomorrow, at the closing bell, to avoid holding over earnings on Thursday. I am moving the stop loss up to $51.90.

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

*small positions* - Suggested Positions -

Long MAR $55 call (ALKS1422C55) entry $2.10

02/25/14 prepare to exit tomorrow at the closing bell.
02/24/14 new stop loss @ 51.90
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: 96.41 change: -0.91

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: -20.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/25/14: I cautioned readers yesterday to look for a dip in CAT. The stock gapped down and dipped to $95.82 before bouncing back to close near its 10-dma. I am not suggesting new positions at this time.

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


Centene Corp. - CNC - close: 62.56 change: -0.82

Stop Loss: 61.25
Target(s): 67.75
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/25/14: Our new trade on CNC has been triggered. Unfortunately the market's widespread pullback today sapped the rally and shares of CNC reversed into a -1.29% decline. The stock opened at $63.59 and immediately hit our suggested entry point at $63.60.

Earlier Comments:
Our target is $67.75. More aggressive investors may want to aim higher since the Point & Figure chart for CNC is bullish with a $78 target.

- Suggested Positions -

Long Mar $65 call (CNC1422C65) entry $1.25

02/24/14 triggered @ 63.60

Entry on February 25 at $63.60
Average Daily Volume = 656 thousand
Listed on February 24, 2014


Salesforce.com - CRM - close: 63.66 change: -0.25

Stop Loss: 62.25
Target(s): 67.50
Current Option Gain/Loss: + 6.0%
Time Frame: Exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/25/14: Time is almost up. Our plan is to exit our CRM trade tomorrow at the closing bell to avoid holding over earnings on Thursday. I am raising our stop loss to $62.25.

- Suggested Positions -

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

02/25/14 new stop loss @ 62.25, exit tomorrow at the closing bell
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: 63.30 change: -0.10

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c +24.5% & Jun $65c: +16.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/25/14: CSC delivered a quiet day with shares drifting sideways inside a narrow range. I am not suggesting new positions at this time.

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: 110.22 change: -1.69

Stop Loss: 108.60
Target(s): 118.50
Current Option Gain/Loss: -43.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/25/14: FFIV is struggling to build any upward momentum. Shares erased yesterday's gains and are moving toward the bottom of their $108.90-114.00 trading range. The February 13th low was $108.80 and we've moved our stop loss to $108.60.

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: 83.95 change: +0.38

Stop Loss: 79.75
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: - 3.0% & Apr $85c: + 5.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/25/14: The biotechs were one of the few groups to post gains today. GILD managed to outperform the market with a +0.45% gain. Shares of GILD continue to struggle with 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: 60.77 change: -1.08

Stop Loss: 58.65
Target(s): 68.00
Current Option Gain/Loss: -16.1%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
02/25/14: IMPV suffered some profit taking with a -1.74% decline. The stock is nearing what should be support at the $60.00 level. Traders could use a dip or a bounce near $60.00 as a new bullish entry point.

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


Rockwell Automation - ROK - close: 120.85 change: +0.29

Stop Loss: 117.90
Target(s): 129.00
Current Option Gain/Loss: + 6.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/25/14: The slow and steady march higher in shares of ROK continued on Tuesday and the stock tagged a new high before paring its gains. Our trigger to launch positions was hit at $121.25. ROK managed to outperform the major indices with a +0.24% gain today. While the trend in ROK is bullish I am concerned about the major market indices. If the market accelerates lower it could be tough for ROK to keep up the rally.

- Suggested Positions -

Long APR $125 call (ROK1419D125) entry $1.70

02/25/14 triggered @ 121.25

Entry on February 25 at $121.25
Average Daily Volume = 1.1 million
Listed on February 22, 2014


Constellation Brands Inc. - STZ - close: 82.07 change: +0.99

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +64.7% & Apr$80c: +30.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/25/14: STZ continues to show relative strength. The stock pushed to a new all-time high with today's +1.2% gain. I am raising the stop loss to $78.75. I am not suggesting new positions at this time.

Earlier Comments:
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

02/25/14 new stop loss @ 78.75
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

Pepsico, Inc. - PEP - close: 79.23 change: +0.35

Stop Loss: 80.15
Target(s): 74.00
Current Option Gain/Loss: -41.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/25/14: PEP's oversold bounce is now four days old. Shares continue to see their intraday rallies retreat as traders sell into strength. I am still bearish on PEP but readers may want to wait for some weakness before initiating 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 BULLISH PLAYS

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

Stop Loss: 71.75
Target(s): 76.50
Current Option Gain/Loss: -14.2%
Time Frame: prepare to exit PRIOR to earnings on Feb. 27th
New Positions: see below

Comments:
02/25/14: It was a rough day for MNST bulls. The stock was downgraded by Longbow before the opening bell and shares gapped open lower at $73.53 and then plunged to a -4.2% decline. Our stop was hit early this morning at $71.75. Goldman Sachs came out later today and suggested investors buy any weakness following MNST's earnings report on Thursday.

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

*Small Positions * - Suggested Positions -

MAR $75 call (MNST1422C75) entry $2.10 exit $1.80* (-14.2%)

02/25/14 stopped out (on a downgrade)
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

chart:

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


CLOSED BEARISH PLAYS

LinkedIn - LNKD - close: 209.84 change: +10.25

Stop Loss: 200.50
Target(s): 171.00
Current Option Gain/Loss: -53.1%
Time Frame: exit prior to March expiration
New Positions: see below

Comments:
02/25/14: Shares of LNKD continued to rally on news it was entering the Chinese market. The stock gapped open higher at $206.12, which immediately closed our play since our stop was $200.50. LNKD continued to move higher until shares stalled near $210 and its 50-dma. LNKD has produced a nice bounce but the larger trend is still bearish.

NOTE: My quote feed says the put option opened at $1.64 this morning but I don't believe it. With the gap higher in LNKD this morning the option should have been around $1.20-1.00 range.

*small positions* - Suggested Positions -

Mar $180 PUT (LNKD1422o180) entry $3.50* exit $1.64 (-53.1%)

02/25/14 stopped out on gap higher at $206.12, stop was 200.50
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.

chart:

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