Editor's Note:

Equity markets around the globe reacted to the Ukraine-Russian situation with selling. The Chinese market was the exception with a minor gain.

The U.S. markets spiked lower at the open but eventually pared their losses.

FFIV and GILD hit our stop loss.


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 86.11 change: -0.53

Stop Loss: 82.45
Target(s): 89.00
Current Option Gain/Loss: +60.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/03/14: The stock market's decline this morning pushed ALK down to $84.30 before shares started bouncing. The 10-dma has risen to $83.25. We will adjust our stop loss up to $82.45.

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

- Suggested Positions -

Long APR 85 call (ALK1419D85) entry $2.50

03/03/14 new stop loss @ 82.45
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: 96.31 change: -0.66

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: -31.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/03/14: CAT dipped below the bottom edge of its $96-98 trading range but bounced at its 20-dma. The low was $95.60. More conservative traders might want to adjust their stop loss closer to today's low. 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


Chicago Bridge & Iron - CBI - close: 82.90 change: -1.29

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
03/03/14: CBI dipped back toward the $82 level before bouncing. Shares still underperformed with a -1.5% decline. I don't see any changes our weekend new play description.

Earlier Comments:
I am suggesting a trigger to buy calls at $84.50 (more conservative traders may want to wait for a rally past $85.00 instead). If we are triggered at $84.50 our target is $89.50. More aggressive investors could aim higher since the Point & Figure chart for CBI is bullish with a $111 target.

Trigger @ $84.50

- Suggested Positions -

Buy the Apr $85 call (CBI1419D85)

Entry on March -- at $---.--
Average Daily Volume = 1.16 million
Listed on March 01, 2014


Centene Corp. - CNC - close: 62.72 change: -0.96

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -44.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/03/14: Monday's market weakness pushed CNC to short-term support near $62.00. I am not suggesting new positions at this time.

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

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


Computer Sciences - CSC - close: 62.20 change: -1.00

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c -12.8% & Jun $65c: - 5.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/03/14: CSC looks like it could be in trouble. Shares closed below their simple 10-dma for the first time in weeks. Last week's failure to breakout past the $64 level is starting to look like a top. The stock settled near short-term support near $62.00. The intraday low was $61.88 and our stop loss is at $61.75. Any follow through lower tomorrow probably hits our stop. 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


Intl. Flavors & Fragrances - IFF - close: 94.00 change: +0.21

Stop Loss: 91.45
Target(s): 99.50
Current Option Gain/Loss: - 3.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/03/14: IFF saw some volatility to the upside this morning. While most of the market was sinking at the open IFF was spiking higher. IFF opened at $93.70, a few minutes later it was trading at $97.91. By lunchtime IFF was back in the $93.50 area. I don't see any news to explain the spike higher.

Given the volatility today, I would be a little hesitant to launch new positions.

- Suggested Positions -

Long Apr $95 call (IFF1419D95) entry $1.50

02/28/14 triggered @ 93.65

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: -19.1%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
03/03/14: IMPV dipped toward round-number support near $60 before bouncing back to settle near its 10-dma. I am not suggesting new positions at this time.

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: 164.95 change: +0.51

Stop Loss: 159.00
Target(s): 169.50
Current Option Gain/Loss: +31.2%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/03/14: PRGO garnered bullish analyst comments from two different firms today. That helped shares close in positive territory. Our target is $169.50 but more aggressive traders may want to aim higher.

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


Rock-Tenn Co. - RKT - close: 110.78 change: -0.84

Stop Loss: 108.75
Target(s): 119.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
03/03/14: RKT also held up reasonably well today. The stock did not see a lot of volatility this morning. Traders bought the dip near $110 and its 10-dma, which is what we could expect given its bullish trend.

Earlier Comments:
Friday's intraday high was $111.81. I am suggesting a trigger to buy calls at $112.00. If triggered our target is $119.50. FYI: The Point & Figure chart for RKT is bullish with a $129 target.

Trigger @ $112.00

- Suggested Positions -

Buy the APR $115 call (RKT1419D115)

Entry on March -- at $---.--
Average Daily Volume = 809 thousand
Listed on March 01, 2014


Rockwell Automation - ROK - close: 121.59 change: -1.25

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: + 2.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/03/14: ROK was way over due for some profit taking so I was not surprised to see shares gap down at the open given the market's weakness. Traders bought the dip near short-term support in the $120 area, which is a good sign. I am not suggesting new positions at this time.

- 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

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


Constellation Brands Inc. - STZ - close: 81.15 change: +0.12

Stop Loss: 79.65
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +23.5% & Apr$80c: + 9.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/03/14: STZ found support near $80 and bounced. I don't see any changes from my earlier comments. However, if you were looking for a new entry point this today's rebound could work (I would buy the April calls).

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

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


Domtar Corp. - UFS - close: 108.34 change: -2.44

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: -40.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/03/14: Our new UFS could be in trouble. The stock displayed relative weakness with a -2.2% decline that has erased the last two and a half days worth of gains. Shares managed to close on short-term support at the 10-dma but if there is any follow through lower tomorrow I would expect UFS to hit our stop at $107.90. I am not suggesting new positions with UFS below $110.

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.

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: 109.94 change: +0.16

Stop Loss: 115.05
Target(s): 101.00
Current Option Gain/Loss: +62.7%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/03/14: After a multi-day sell-off last week shares of GMCR are finding some support near the $110 level. If the stock does see an oversold bounce I would expect a rebound into the $113.50-115.00 area. I am not suggesting new positions at this time.

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.

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



CLOSED BULLISH PLAYS

F5 Networks - FFIV - close: 111.18 change: -1.16

Stop Loss: 109.75
Target(s): 118.50
Current Option Gain/Loss: -52.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/03/14: After underperforming the market on Friday shares of FFIV continued to underperform today. When the market turned south this morning FFIV spiked lower and hit our stop loss at $109.75.

- Suggested Positions -

MAR $115 call (FFIV1422C115) entry $3.14 exit $1.50 (-52.2%)

03/03/14 stopped out
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: 81.45 change: -1.34

Stop Loss: 81.40
Target(s): 89.75
Current Option Gain/Loss: Mar $85c: -56.5% & Apr $85c: -30.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/03/14: GILD underperformed the market today with a -1.6% decline. Shares look headed for the $80.00 level. GILD should find support near the bottom of its bullish channel in the $76.50-78.50 area.

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 exit $0.87 (-56.5%)

- or -

Long APR $85 call (GILD1419D85) entry $3.04* exit $2.12 (-30.2%)

03/03/14 stopped out
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