Editor's Note:

The market briefly sold off on Friday afternoon on news that Russia had sent troops into Crimea (southern Ukraine) but equities bounced into the closing bell.

IFF and UFS hit our entry triggers. PEP has been stopped out.


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 86.64 change: +0.34

Stop Loss: 81.75
Target(s): 89.00
Current Option Gain/Loss: +72.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/01/14: ALK continued to drift higher on Friday with a +0.39% gain. The stock is up seven days in a row and could be due for a little pullback soon. I am not suggesting new positions at this time.

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

chart:

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


Caterpillar Inc. - CAT - close: 96.97 change: +0.27

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: - 9.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/01/14: CAT spent the week churning sideways inside the $96-98 zone. More conservative traders may want to raise their stop loss. 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

chart:

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


Centene Corp. - CNC - close: 63.68 change: +0.83

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/01/14: CNC was showing some relative strength on Friday with a +1.3% gain. Yet shares stalled near short-term resistance near $64.00 again. Tonight we are raising the stop loss to $61.75.

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

03/01/14 new stop loss @ 61.75
02/24/14 triggered @ 63.60

chart:

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


Computer Sciences - CSC - close: 63.20 change: -0.07

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:
03/01/14: CSC delivered a quiet session on Friday with another test of its simple 10-dma. If shares breakdown below their 10-dma it could be a quick drop to the $62.00 level, the next level of potential support. 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.

chart:

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


F5 Networks - FFIV - close: 112.34 change: -2.17

Stop Loss: 109.75
Target(s): 118.50
Current Option Gain/Loss: -32.4%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/01/14: FFIV has really struggled to build on any rally attempts in the last couple of weeks. Almost every bounce and rally is quickly reversed. Shares failed again on Friday at the $115.00 level. 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

02/27/14 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

chart:

Entry on February 11 at $111.10
Average Daily Volume = 2.8 million
Listed on February 10, 2014


Gilead Sciences - GILD - close: 82.79 change: -0.86

Stop Loss: 81.40
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: -36.5% & Apr $85c: -17.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/01/14: Biotech stocks have been some of the market's best performers last year and this year. Unfortunately this past week the group has seen some profit taking. Shares of GILD dipped to an intraday low of $81.80 on Friday. Our stop is at $81.40. I am not suggesting new positions at this time.

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.

chart:

Entry on February 12 at $82.50
Average Daily Volume = 13.7 million
Listed on February 11, 2014


Intl. Flavors & Fragrances - IFF - close: 93.79 change: +0.61

Stop Loss: 91.45
Target(s): 99.50
Current Option Gain/Loss: - 6.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/01/14: IFF tagged another new all-time high on Friday and hit our trigger to buy calls at $93.65. The stock should have some short-term support in the $92-93 zone.

- Suggested Positions -

Long Apr $95 call (IFF1419D95) entry $1.50

02/28/14 triggered @ 93.65

chart:

Entry on February 28 at $93.65
Average Daily Volume = 410 thousand
Listed on February 27, 2014


Imperva Inc. - IMPV - close: 62.67 change: -0.01

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:
03/01/14: The last day of trading in February saw some volatility in IMPV. The stock tagged a new high on Friday morning and was testing short-term support near its 10-dma by Friday afternoon.

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

chart:

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


Perrigo Co. - PRGO - close: 164.44 change: -1.88

Stop Loss: 159.00
Target(s): 169.50
Current Option Gain/Loss: +34.3%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/01/14: PRGO also saw a little volatility on Friday with a spike higher in the morning and a dip back to $161.58 during the market's afternoon swoon. Shares settled by giving back about half of Thursday's rally. More conservative traders might want to inch their stop loss higher. You will notice on the chart that PRGO has tagged a new trend line of higher highs.

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

chart:

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


Rockwell Automation - ROK - close: 122.84 change: +0.66

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: +26.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/01/14: ROK continues the trend of going almost straight up from its February 5th low. Some days the gains were not very big but shares have just crept higher slowly but surely and ended the month at new all-time highs.

I am a little worried that our bullish price target is too optimistic given ROK's slow ascent. Plus shares are clearly short-term overbought at the moment. Look for support near $120.00. We'll adjust the stop loss to $119.40.

NOTE: Readers may want to consider taking profits if ROK tags the trend line of higher highs (see chart).

- Suggested Positions -

Long APR $125 call (ROK1419D125) entry $1.70

03/01/14 new stop loss @ 119.40
02/27/14 new stop loss @ 118.75
02/25/14 triggered @ 121.25

chart:

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


Constellation Brands Inc. - STZ - close: 81.03 change: -0.36

Stop Loss: 79.65
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +17.6% & Apr$80c: + 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/01/14: STZ hit record highs early last week. Shares have started to see a little profit taking with a three-day dip to its simple 10-dma. We will adjust our stop loss to $79.65. 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

03/01/14 new stop loss @ 79.65
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

chart:

Entry on February 12 at $79.00
Average Daily Volume = 1.5 million
Listed on February 11, 2014


Domtar Corp. - UFS - close: 110.78 change: +1.04

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: - 9.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/01/14: Our UFS trade has been triggered. The stock displayed some relative strength on Friday with a +0.9% gain and a bullish breakout above resistance at $110. Our trigger to buy calls was hit at $110.50.

Earlier Comments:
Our target is $118.00. The Point & Figure chart for UFS is bullish with a $135 target.

- Suggested Positions -

Long APR $115 call (UFS1419D115) entry $2.10*

02/28/14 triggered @ 110.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on February 28 at $110.50
Average Daily Volume = 817 thousand
Listed on February 26, 2014




PUT Play Updates

Green Mountain Coffee Roasters - GMCR - close: 109.78 change: -3.11

Stop Loss: 115.05
Target(s): 101.00
Current Option Gain/Loss: +56.9%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/01/14: Shares of GMCR are still retreating with another -2.75% in profit taking on Friday. The stock is now testing the $110 area, which may or may not be short-term support. We're adjusting our stop loss down to $115.05.

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*

03/01/14 new stop loss @ 115.05
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.

chart:

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


CLOSED BEARISH PLAYS

Pepsico, Inc. - PEP - close: 80.07 change: +1.00

Stop Loss: 80.15
Target(s): 74.00
Current Option Gain/Loss: -55.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/01/14: It looks like the market liked the idea that PEP is rejecting activist investor ideas to split up the company. Shares rallied on Friday with a +1.2% gain and traded above resistance near $80.00 and its 30-dma and 300-dma. Our stop was hit at $80.15.

- Suggested Positions -

APR $75 PUT (PEP1419P75) entry $0.95* exit 0.42 (-55.7%)

02/28/14 stopped out
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.

chart:

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