Editor's Note:

The S&P 500 index and Russell 2000 index both set new all-time highs today.

Our GMCR put play was triggered.


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 86.30 change: +0.42

Stop Loss: 81.75
Target(s): 89.00
Current Option Gain/Loss: +68.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/27/14: ALK tagged another new high and closed up +0.48%. The intraday high today was $87.27. I am adjusting our exit target from $88.00 to $89.00.

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

- Suggested Positions -

Long APR 85 call (ALK1419D85) entry $2.50

02/27/14 adjust exit target from $88 to $89.00
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


Caterpillar Inc. - CAT - close: 96.70 change: -0.50

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: -13.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/27/14: Hmm... the action in CAT's stock today is a bit disappointing. Shares seem to be churning sideways in the $96-98 zone. 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: 62.85 change: +0.05

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:
02/27/14: The action in CNC shares was also underwhelming today. CNC drifted sideways in a narrow range. Readers may want to wait for a new rally above $63.50 before initiating new positions.

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


Computer Sciences - CSC - close: 63.27 change: -0.34

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c + 6.7% & Jun $65c: +14.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/27/14: CSC displayed some weakness this morning but shares bought the dip near its rising 10-dma. CSC spent the rest of the day trying to recover but only managed a slow drift higher. 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: 114.51 change: +0.62

Stop Loss: 109.75
Target(s): 118.50
Current Option Gain/Loss: + 9.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
02/27/14: FFIV has finally closed above short-term resistance at the $114.00 level. Today's move looks like a new entry point for bullish positions or wait for a breakout past $115.00. I am adjusting our stop loss to $109.75.

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

02/27/14 new stop loss @ 109.75
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: 83.65 change: -0.16

Stop Loss: 81.40
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: -14.5% & Apr $85c: - 1.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/27/14: GILD briefly traded down below its simple 10-dma before paring its losses. Overall the stock continues to struggle with resistance near the $84.00 level.

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*

02/26/14 new stop loss @ 81.40
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: 62.68 change: -0.24

Stop Loss: 59.75
Target(s): 68.00
Current Option Gain/Loss: +14.7%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
02/27/14: IMPV also spent Thursday's session consolidating sideways. If the market moves higher tomorrow we should see IMPV breakout to new highs.

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*

02/26/14 new stop loss @ 59.75
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


Perrigo Co. - PRGO - close: 166.32 change: +3.36

Stop Loss: 159.00
Target(s): 169.50
Current Option Gain/Loss: +68.7%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
02/27/14: PRGO is building on yesterday's bullish breakout to new highs. The stock added +2.0% today to set a new closing high. This rebound reaffirms the current up trend.

Earlier Comments:
The plan was to keep position size small to limit risk.

*small positions* - Suggested Positions -

Long MAR $165 call (PRGO1422C165) entry $3.20

02/26/14 triggered @ 162.50

Entry on February 26 at $162.50
Average Daily Volume = 1.3 million
Listed on February 25, 2014


Rockwell Automation - ROK - close: 122.18 change: +0.45

Stop Loss: 118.75
Target(s): 129.00
Current Option Gain/Loss: +14.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/27/14: Another day, another gain for ROK. The non-stop rally from its February low will not last forever but while it's here we'll try and ride it. I am adjusting our stop loss to $118.75.

- Suggested Positions -

Long APR $125 call (ROK1419D125) entry $1.70

02/27/14 new stop loss @ 118.75
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: 81.39 change: -0.49

Stop Loss: 78.75
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +32.3% & Apr$80c: +15.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/27/14: STZ hit a little profit taking today with a -0.59% pullback. Look for short-term support near the $80.00 mark. 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


Domtar Corp. - UFS - close: 109.74 change: -0.15

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
02/27/14: Thursday proved to be a quiet day for UFS. The stock consolidated sideways in a narrow range just below resistance at the $110 level.

I am suggesting a trigger to buy calls at $110.50. If triggered our target is $118.00. The Point & Figure chart for UFS is bullish with a $135 target.

Trigger @ 110.50

- Suggested Positions -

Buy the APR $115 call (UFS1419D115) current ask $1.95

Entry on February -- at $---.--
Average Daily Volume = 817 thousand
Listed on February 26, 2014




PUT Play Updates

Green Mountain Coffee Roasters - GMCR - close: 112.89 change: -3.21

Stop Loss: 120.10
Target(s): 101.00
Current Option Gain/Loss: +18.2%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
02/27/14: Our new bearish put play on GMCR is off to a good start. The stock gapped open lower at $115.33 and fell -2.76% by the closing bell. Our trigger to buy puts was hit at $114.65.

Earlier Comments:
GMCR can be a volatile stock so we consider any trades to be more aggressive and higher risk. Use small positions to limit risk.

*small positions* - Suggested Positions -

Long MAR $110 PUT (GMCR1422o110) entry $2.58*

02/27/14 triggered @ 114.65
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on February 27 at $114.65
Average Daily Volume = 6.7 million
Listed on February 26, 2014


Pepsico, Inc. - PEP - close: 79.07 change: +0.42

Stop Loss: 80.15
Target(s): 74.00
Current Option Gain/Loss: -40.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
02/27/14: PEP did not see any follow through on yesterday's bearish reversal under resistance. The bounce in the stock today was a reaction to news that activist investor Nelson Peltz sent another letter to PEP's board suggesting the company split up its divisions. PEP has rebuffed Mr. Peltz again and in a letter to Mr. Peltz, PepsiCo stated they feel they're better off as a combined food and beverage company.

- Suggested Positions -

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

02/26/14 today's move looks like a new bearish entry point
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