Editor's Note:

The U.S. markets managed to shrug off the latest news out of Ukraine and for the most part drifted higher ahead of tomorrow's jobs report.

We closed our CAT and CSC trades this morning.
XONE hit our entry trigger.


Current Portfolio:


CALL Play Updates

BorgWarner Inc. - BWA - close: 61.85 change: +0.40

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to April expiration
New Positions: Yes, see below

Comments:
03/06/14: BWA is bouncing back toward resistance near $62.00 but not breakout yet. I don't see any changes from my prior comments.

We want to use a trigger to buy calls on BWA at $62.25. If triggered we'll use a stop loss at $59.90. Our initial target is $67.50.

Trigger @ 62.25

- Suggested Positions -

Buy the Apr $65 call (BWA1419D65)

03/05/14 corrected some numbers on the entry point, target and stop loss.
Use a trigger @ 62.25. Use a stop at $59.90. Target 67.50

Entry on March -- at $---.--
Average Daily Volume = 2.0 million
Listed on March 04, 2014


Chicago Bridge & Iron - CBI - close: 85.36 change: +0.91

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: +7.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/14: CBI bounced from the $84 level to set a new all-time closing high. Investors may want to start raising their stop loss. Look for short-term support near the simple 10-dma (currently 82.60).

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: 62.83 change: -0.32

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -60.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06/14: CNC has been underperforming a bit these last two days. Readers may want to adjust their stop loss again. 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


Rockwell Collins Inc. - COL - close: 82.35 change: -0.66

Stop Loss: 81.75
Target(s): 89.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to April expiration
New Positions: Yes, see below

Comments:
03/06/14: COL underperformed the market today with a -0.8% decline and a close below its simple 10-dma. That is short-term bearish. Shares are also nearing the bottom of their recent trading range. If COL does not improve soon we will likely drop it as a candidate.

Currently, I am suggesting a trigger to buy calls at $84.15. If triggered our target is $89.50. FYI: The Point & Figure chart for COL is bullish with a $106 target.

Trigger @ 84.15

- Suggested Positions -

Buy the APR $85 call (COL1419D85)

Entry on March -- at $---.--
Average Daily Volume = 915 thousand
Listed on March 04, 2014


Intl. Flavors & Fragrances - IFF - close: 95.23 change: -0.05

Stop Loss: 92.40
Target(s): 99.50
Current Option Gain/Loss: +36.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/14: Thursday was another quiet session for shares of IFF with the stock moving sideways. Look for potential support near $94.00.

- 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: 65.53 change: +0.53

Stop Loss: 61.40
Target(s): 68.00
Current Option Gain/Loss: +67.6%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
03/06/14: Hmm... IMPV displayed relative strength by closing with a +0.8% gain. Yet shares are off their intraday high of $67.12. IMPV tested a trend line of higher highs and retreated. More conservative traders may want to just take profits now. I am not suggesting new positions. We will raise our stop loss to $61.40.

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*

03/06/14 new stop loss @ 61.40
Traders may want to take profits now to lock in potential gains!
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: 166.84 change: +0.02

Stop Loss: 159.90
Target(s): 169.75 & 174.75
Current Option Gain/Loss: +19.0%
Time Frame: exit prior to April option expiration
New Positions: see below

Comments:
03/06/14: I am not surprised to see LMT churn sideways just below its highs and just ahead of tomorrow's jobs report. I am not suggesting new positions at this time.

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: 163.89 change: -3.06

Stop Loss: 162.75
Target(s): 169.50
Current Option Gain/Loss: - 3.1%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/06/14: Ouch! PRGO suffered some profit taking with a -1.8% decline. The stock settled on short-term support at its simple 10-dma. I didn't see any news behind today's drop. If there is any follow through lower tomorrow we could see PRGO hit our stop at $162.75.

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

03/05/14 new stop loss @ 162.75
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: 112.62 change: -0.85

Stop Loss: 109.65
Target(s): 119.50
Current Option Gain/Loss: -14.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/14: I have cautioned readers that RKT might try and fill the gap from March 4th. Shares appear to be moving that direction. Look for a dip toward $111.

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: 123.46 change: -0.03

Stop Loss: 119.40
Target(s): 125.00
Current Option Gain/Loss: +35.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/06/14: ROK quietly churned sideways near short-term resistance at the $124.00 level. Currently our exit target is $125.00. More aggressive traders may want to aim higher but there is a trend line (resistance) of higher highs in the $125-126 area.

If stocks rally on the jobs data tomorrow we should see ROK hit our target.

- 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

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


Constellation Brands Inc. - STZ - close: 83.85 change: +1.12

Stop Loss: 79.65
Target(s): 84.75
Current Option Gain/Loss: Mar$80c:+111.7% & Apr$80c: +54.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/06/14: More new highs for STZ. The stock displayed more relative strength with a +1.35% gain. Our exit target is $84.75. More aggressive traders may want to aim higher.

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: 110.44 change: -0.47

Stop Loss: 107.90
Target(s): 118.00
Current Option Gain/Loss: -28.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/14: UFS retreated lower this morning but shares found support near $110 and bounced along the $110 mark the rest of the session. If the market rallies on the jobs report tomorrow I expect UFS to see new highs.

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: 67.99 change: -0.21

Stop Loss: 66.25
Target(s): 74.50
Current Option Gain/Loss: -34.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/06/14: VMC is still churning sideways near the $68 level, which as prior resistance should offer some support. A bounce from current levels could be used as a new 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 - cls: 107.12 chg: -3.42

Stop Loss: 113.55
Target(s): 101.00
Current Option Gain/Loss: +103.4%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/06/14: Good news! The profit taking in GMCR resumed on Thursday and shares underperformed the market with a -3.0% decline and a new relative low.

Our put option has doubled in value. Traders may want to take some money off the table.

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*

03/06/14 our put has doubled in value. Traders may want to take some money off the table.
03/05/14 new stop loss @ 113.55
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


The ExOne Company - XONE - close: 43.18 change: -2.13

Stop Loss: 46.35
Target(s): 40.25
Current Option Gain/Loss: +20.3%
Time Frame: exit PRIOR to earnings on March 19th
New Positions: see below

Comments:
03/06/14: Our brand new play on XONE has triggered. As expected the stock broke down to new relative lows. Our trigger to buy puts was hit at $44.40. XONE settled with a -4.7% decline.

XONE could have support at $40.00 or it might drop toward the early February low of $37.80. We are currently aiming for $40.25. More aggressive traders could aim lower.

FYI: After the closing bell tonight XONE announced a couple of acquisitions. They paid approximately $4.8 million in cash to buy MWT, a "pioneer in industrial grade microwaves with leading design and manufacturing experience, ExOne has enhanced its position as the market leader of 3D sand production systems for industry."

XONE also bought the assets of Machin-A-Mation, a specialty machine shop in Chesterfield, Michigan for about $5.0 million.

I am not seeing any reaction in XONE's stock price to this news in after hours markets.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. The 3D printing stocks can be very volatile. Furthermore XONE has very high short interest. The most recent data listed short interest at 43% of the very, very small 7.9 million share float. That raises the risk of a short squeeze. This trade also has a short time frame. XONE is scheduled to report earnings on March 19th. We do not want to hold over the report. That gives us about two weeks.

*Small Positions - Aggressive Trade*

Long MAR $40 PUT (XONE1422o40) entry $1.08

03/06/14 triggered @ 44.40

Entry on March 06 at $44.40
Average Daily Volume = 444 thousand
Listed on March 05, 2014



CLOSED BULLISH PLAYS

Caterpillar Inc. - CAT - close: 97.60 change: +1.23

Stop Loss: 94.85
Target(s): 99.65
Current Option Gain/Loss: -44.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/06/14: Sometimes the market seems spiteful. Last night we decide to drop CAT for lack of movement and today the stock displays relative strength with a +1.27% gain. On the positive side of this move the gap open higher at $96.95 should have helped but the option only opened at $0.80.

small positions - Suggested Positions -

MAR $97.50 call (CAT1422C97.5) entry $1.45 exit $0.80 (-44.8%)

03/06/14 planned exit
03/05/14 prepare to exit immediately tomorrow morning
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


Computer Sciences - CSC - close: 62.58 change: +0.03

Stop Loss: 61.75
Target(s): 68.00
Current Option Gain/Loss: Mar $60c - 2.1% & Jun $65c: + 1.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/06/14: CSC seems to be developing a very short-term trend of lower highs. We decided last night to close positions this morning. The stock opened at $62.72. I would keep CSC on your watch list for a dip toward $60.00 or its 50-dma, either could prove to be support.

- Suggested Positions -

MAR $60 call (CSC1422C60) entry $2.81* exit $2.75** (-2.1%)

- or -

JUN $65 call (CSC1421F65) entry $2.27* exit $2.30** (+1.3%)

03/06/14 planned exit
**option exit price is an estimate since the option did not trade at the time our play was closed.
03/05/14 prepare to exit at the open tomorrow
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