Editor's Note:

The U.S. market drifted sideways on Friday as traders digested the jobs number and new developments in Ukraine.

Don't forget that March options only have two weeks left.

We are removing COL as a candidate.
IMPV and PRGO have been stopped out.


Current Portfolio:


CALL Play Updates

BorgWarner Inc. - BWA - close: 61.31 change: -0.54

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:
03/08/14: BWA spent Friday's session consolidating sideways near the $61.50 level. Shares have spent the last two weeks in the $60-62 trading range. We are looking for a breakout higher.

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

chart:

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


Chicago Bridge & Iron - CBI - close: 84.30 change: -1.06

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: -10.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08/14: CBI saw some profit taking on Friday. Shares erased Thursday's gains with a -1.24% decline. Technically the move has created a bearish engulfing candlestick reversal pattern. More conservative traders might want to raise their stop loss closer to the simple 10-dma, currently near $83.14. I am not suggesting new positions at this time.

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

chart:

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


Centene Corp. - CNC - close: 63.43 change: +0.60

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -52.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/08/14: CNC managed a bounce and showed some relative strength on Friday with a +0.95% gain. I want to remind readers that we only have two weeks left on March options. 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

chart:

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


Facebook, Inc. - FB - close: 69.80 change: -1.04

Stop Loss: 68.40
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to April expiration
New Positions: Yes, see below

Comments:
03/08/14: FB has produced a two-day dip back toward what could be short-term support near $70.00 and its 10-dma. More aggressive traders may want to consider buying calls now. I am adjusting our trigger to buy calls from $71.25 down to $70.75.

More conservative traders may want to wait for a breakout past $72.00 (a new high) before initiating positions. If triggered our multi-week target is $77.50. Investors may want to aim higher. The Point & Figure chart is very bullish with a long-term target of $110.

Trigger @ 70.75

- Suggested Positions -

Buy the Apr $75 call (FB1419D75) current ask $1.79

03/08/14 adjust entry trigger from $71.25 down to $70.75

chart:

Entry on March -- at $---.--
Average Daily Volume = 58 million
Listed on March 06, 2014


Intl. Flavors & Fragrances - IFF - close: 95.30 change: +0.07

Stop Loss: 92.80
Target(s): 99.50
Current Option Gain/Loss: +40.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08/14: IFF has spent the last three days consolidating sideways along the $95.00 level. More conservative traders may want to raise their stop closer to $95.00 or closer to the 10-dma currently at $93.92. Tonight I am adjusting our stop loss to $92.80.

- Suggested Positions -

Long Apr $95 call (IFF1419D95) entry $1.50

03/08/14 new stop loss @ 92.80
03/04/14 new stop loss @ 92.40
02/28/14 triggered @ 93.65

chart:

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


Lockheed Martin - LMT - close: 166.57 change: -0.27

Stop Loss: 159.90
Target(s): 169.75 & 174.75
Current Option Gain/Loss: +11.9%
Time Frame: exit prior to April option expiration
New Positions: see below

Comments:
03/08/14: LMT is holding up reasonably well. I am growing concerned with its upward momentum stalling in the last couple of days. Shares have been churning sideways in the $166-168 zone. Combine that with the February peak near $168 and this is starting to look like a short-term bearish double top pattern. 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

chart:

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


Rock-Tenn Co. - RKT - close: 112.57 change: -0.05

Stop Loss: 109.65
Target(s): 119.50
Current Option Gain/Loss: -17.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08/14: RKT dipped to short-term technical support at its 10-dma and bounced on Friday. I've been suggesting that RKT could dip toward $111.00 and the low on Friday was $111.00. Traders can use this move as a new entry point to buy calls.

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.

chart:

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


Rockwell Automation - ROK - close: 124.72 change: +1.26

Stop Loss: 121.75
Target(s): 125.00
Current Option Gain/Loss: +61.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
03/08/14: ROK displayed some relative strength on Friday with a +1.0% gain but only hit an intraday high of $124.78. Our target is to exit at $125.00. More aggressive traders could aim higher but ROK is facing a trend line of resistance.

Please note our new stop loss at $121.75.

- Suggested Positions -

Long APR $125 call (ROK1419D125) entry $1.70

03/08/14 new stop loss @ 121.75
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: 83.91 change: +0.06

Stop Loss: 81.45
Target(s): Target for March calls @ $84.50
Target(s): Target for April calls @ $88.00
Current Option Gain/Loss: Mar$80c:+123.5% & Apr$80c: +66.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/08/14: STZ eked out a very small gain as shares consolidated sideways below the $84.00 level. Please note that I am adjusting our exit strategy.

I am suggesting we exit our March $80 calls if STZ hits $84.50, which could happen soon. We will move the exit target on our April calls to $88.00.

I am moving our stop loss to $81.45.

- Suggested Positions -

Buy the MAR $80 call (STZ1422C80) entry $1.70

- or -

Buy the APR $80 call (STZ1419D80) entry $3.30

03/08/14 new stop loss @ 81.45
move the target to exit the March calls to $84.50
move the target to exit the April calls to $88.00
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: 110.32 change: -0.12

Stop Loss: 108.45
Target(s): 118.00
Current Option Gain/Loss: -28.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08/14: UFS is struggling to build on any breakout higher. Friday saw shares fail near their Thursday intraday highs. I am adjusting our stop loss to $108.45. I am not suggesting new positions at this time.

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*

03/08/14 new stop loss @ 108.45
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


Vulcan Materials - VMC - close: 68.85 change: +0.86

Stop Loss: 66.25
Target(s): 74.50
Current Option Gain/Loss: -19.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/08/14: VMC delivered a bounce right on cue. Traders could use this move as a new entry point. More conservative traders might want to adjust their stop loss closer to $67.00.

- 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.

chart:

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: 106.00 chg: -1.12

Stop Loss: 112.25
Target(s): 101.00
Current Option Gain/Loss: +120.9%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/08/14: Shares of GMCR continued to underperform on Friday with another -1.0% decline. Shares are now down two weeks in a row. Our put option has more than doubled and traders may want to take some money off the table. I am not suggesting new positions at this time. The simple 10-dma has fallen to $112.00. We will move the stop loss to $112.25.

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*

03/08/14 new stop loss @ 112.25
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.

chart:

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


The ExOne Company - XONE - close: 44.92 change: +1.74

Stop Loss: 46.35
Target(s): 40.25
Current Option Gain/Loss: -21.2%
Time Frame: exit PRIOR to earnings on March 19th
New Positions: see below

Comments:
03/08/14: XONE surprised us with a bounce on Friday. The stock surged +4.0%, which reversed a big chunk of Thursday's -4.7% decline. What makes XONE's decline even more surprising is that its peers were sinking on Friday. The rebound is most likely a reaction to Thursday's news of XONE's acquisitions.

It is worth noting that the bounce in XONE stalled in the $45.00-45.25 area and below its 30-dma, which has been recent resistance. I would wait for a drop under $44.20 before considering new bearish entry points.

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

chart:

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



CLOSED BULLISH PLAYS

Rockwell Collins Inc. - COL - close: 82.18 change: -0.17

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

Comments:
03/08/14: COL is not cooperating with us. The stock reversed at $84.00 three days ago and has continued to underperform. Our trade has not opened yet. We're removing COL as an active candidate.

Trade did not open.

03/08/14 removed from the newsletter. suggested trigger was $84.15

chart:

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


Imperva Inc. - IMPV - close: 61.05 change: -4.48

Stop Loss: 61.40
Target(s): 68.00
Current Option Gain/Loss: -19.1%
Time Frame: exit prior to March option expiration
New Positions: see below

Comments:
03/08/14: Friday proved to be a rough day for IMPV. The stock plunged from $66.25 on Friday morning to $60.15 before bouncing and settling with a -6.8% decline. I didn't see any news that might explain this sudden weakness. Our stop loss was hit at $61.40.

- Suggested Positions -

MAR $60 call (IMPV1422c60) entry $3.40* exit $2.75** (-19.1%)

03/07/14 stopped out
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

chart:

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


Perrigo Co. - PRGO - close: 164.48 change: +0.59

Stop Loss: 162.75
Target(s): 169.50
Current Option Gain/Loss: -17.1%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/08/14: PRGO continued to sink on Friday morning and hit our stop loss at $162.75 before bouncing back into positive territory.

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

*small positions* - Suggested Positions -

MAR $165 call (PRGO1422C165) entry $3.20 exit $2.65* (-17.1%)

03/07/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/05/14 new stop loss @ 162.75
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