Editor's Note:

Easing tensions between Russia and the Ukraine helped spur a very broad-based rally in stocks.

ALK hit our bullish target.

CBI, LMT, RKT, and VMC hit our entry triggers.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 97.02 change: +0.71

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: -25.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/14: Shares of CAT were downgraded this morning, which may have encumbered its rally today. Shares only gained +0.7%. 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: 84.83 change: +1.93

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: +3.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/04/14: Our new trade on CBI has been triggered. The stock gapped open higher at $84.40 and surged to $86.50 before trimming its gains. Our suggested entry point to buy calls was hit this morning at $84.50.

CBI actually spent most of today's session inside the $84.50-85.00 zone. Readers may want to wait for CBI to rally above $85.00 before initiating positions.

Earlier Comments:
Our target is $89.50. More aggressive investors could aim higher since the Point & Figure chart for CBI is bullish with a $111 target.

- Suggested Positions -

Long Apr $85 call (CBI1419D85) entry $2.80

03/04/14 triggered @ 84.50

Entry on March 04 at $84.50
Average Daily Volume = 1.16 million
Listed on March 01, 2014


Centene Corp. - CNC - close: 63.88 change: +1.16

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/04/14: CNC surged +1.8% today. The stock is slowly forming a trend of higher highs and marked a new one today. 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: 63.00 change: +0.80

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c +10.3% & Jun $65c: +10.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/04/14: CSC popped back above its simple 10-dma and closed with a +1.28% gain. Shares still have resistance near $64.00. 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: 95.98 change: +1.98

Stop Loss: 92.40
Target(s): 99.50
Current Option Gain/Loss: +73.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/04/14: IFF garnered some bullish analyst comments this morning and a new $106 price target. Shares surged +2.1% to a new closing high. I am raising the stop loss to $92.40.

- Suggested Positions -

Long Apr $95 call (IFF1419D95) entry $1.50

03/04/14 new stop loss @ 92.40
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: 62.24 change: +1.23

Stop Loss: 59.75
Target(s): 68.00
Current Option Gain/Loss: + 0.0%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
03/04/14: IMPV reversed a good chunk of yesterday's losses with a +2.0% gain today. 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


Lockheed Martin - LMT - close: 165.64 change: +2.09

Stop Loss: 159.90
Target(s): 169.75 & 174.75
Current Option Gain/Loss: + 2.3%
Time Frame: exit prior to April option expiration
New Positions: see below

Comments:
03/04/14: Our new LMT trade has been triggered. LMT gapped open higher at $164.29 and managed to close over potential resistance at the $165.00 level. Our trigger was hit early this morning at $164.35.

We have two different targets. Our conservative target is $169.75. Our more aggressive target is $174.75. FYI: The Point & Figure chart for LMT is very bullish with a $221 target.

- Suggested Positions -

Long Apr $165 call (LMT1419D165) entry $4.20

03/04/14 triggered @ 164.35

Entry on March 04 at $164.35
Average Daily Volume = 2.3 million
Listed on March 03, 2014


Perrigo Co. - PRGO - close: 167.60 change: +2.65

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:
03/04/14: PRGO gapped open higher at $167.11 and set a new closing high but not a new intraday high. 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: 114.50 change: +3.72

Stop Loss: 109.65
Target(s): 119.50
Current Option Gain/Loss: + 9.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/04/14: Our new play on RKT has opened. Unfortunately it opened on a gap open higher. Our suggested trigger to buy calls was $112.00 but RKT opened at $113.35. The stock spiked to $116.39 before trimming its gains. We will raise the stop loss to $109.65.

Earlier Comments:
Our target is $119.50. FYI: The Point & Figure chart for RKT is bullish with a $129 target.

- Suggested Positions -

Long APR $115 call (RKT1419D115) entry $3.10*

03/04/14 new stop loss @ 109.65
03/04/14 triggered on gap higher at $113.35, trigger was 112.00
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on March 04 at $113.35
Average Daily Volume = 809 thousand
Listed on March 01, 2014


Rockwell Automation - ROK - close: 124.00 change: +2.41

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: +58.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/14: ROK recovered all of yesterday's losses and more with a +1.98% surge to new highs. Please note that I am adjusting our exit target to $125.00. ROK is nearing a trend line of resistance. Prepare to exit soon.

- Suggested Positions -

Long APR $125 call (ROK1419D125) entry $1.70

03/04/14 adjust exit target to $125.00
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: 82.51 change: +1.36

Stop Loss: 79.65
Target(s): 84.75
Current Option Gain/Loss: Mar$80c: +67.6% & Apr$80c: +33.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/04/14: The rebound in STZ continued on Tuesday with a +1.6% gain and a new closing high.

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: 110.79 change: +2.45

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: -16.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/04/14: The stock market's big rally today was a gift. UFS was poised to hit our stop loss yesterday. Shares have reversed and are back above resistance near $110. I will point out that UFS has stalled at the $111.07 area twice in the last three days. Traders may want to wait for a rally past $111.10 before initiating positions.

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


Vulcan Materials - VMC - close: 69.01 change: +0.65

Stop Loss: 66.25
Target(s): 74.50
Current Option Gain/Loss: -10.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/04/14: Our new trade on VMC has been triggered. The stock gapped open higher at $69.31 and eventually settled with a +0.9% gain. Our plan was to buy calls at $68.75 so the gap higher opened our play. I would not be surprised to see VMC dip to $68.50 before moving higher so patient traders could wait for a little dip as an entry point.

- Suggested Positions -

Long APR $70 call (VMC1419D70) entry $2.35*

03/04/14 triggered on gap higher at $69.31. Suggested trigger was $68.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on March 04 at $69.31
Average Daily Volume = 1.1 million
Listed on March 03, 2014




PUT Play Updates

Green Mountain Coffee Roasters - GMCR - close: 108.62 change: -1.32

Stop Loss: 115.05
Target(s): 101.00
Current Option Gain/Loss: +80.2%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/04/14: Our GMCR put play is performing very well. The stock did gap open higher with the market's morning rally but GMCR's bounce ran out of steam at near $112.00. Shares underperformed with a -1.2% loss by the closing bell.

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

Alaska Air Group - ALK - close: 89.11 change: +3.00

Stop Loss: 82.45
Target(s): 89.00
Current Option Gain/Loss: +132.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/04/14: Target achieved.

The market rallied sharply on Tuesday and ALK surged over 3.4%. Our target was hit at $89.00.

- Suggested Positions -

APR 85 call (ALK1419D85) entry $2.50 exit $5.80 (+132.0%)

03/04/14 target hit @ 89.00
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

chart:

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