Editor's Note:

Weakness overseas pressured U.S. market to morning losses but the major indices managed a rebound and most of the market closed with minor gains.

Prepare to exit our VMC trade tomorrow morning.


Current Portfolio:


CALL Play Updates

BorgWarner Inc. - BWA - close: 61.38 change: +0.23

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:
03/12/14: BWA bounced off its morning lows near support in the $60 area and closed right in the middle of its $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

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


Chicago Bridge & Iron - CBI - close: 82.96 change: +0.12

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: -39.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12/14: CBI eked out a small gain by the closing bell. Shares spiked down to $81.39 this morning but spent the majority of the session inside the $82.50-83.00 zone. 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

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


Centene Corp. - CNC - close: 64.41 change: +0.42

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:
03/12/14: CNC managed to show some relative strength with a +0.65% gain. The stock looks poised to try and breakout past $65.00 again soon. I am not suggesting new positions at this time.

Keep in mind that our March calls expire in less than two weeks.

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


Facebook, Inc. - FB - close: 70.88 change: +0.78

Stop Loss: 68.40
Target(s): 77.50
Current Option Gain/Loss: - 8.0%
Time Frame: exit prior to April expiration
New Positions: see below

Comments:
03/12/14: Shares of FB dipped to $69.00 and its 20-dma before bouncing this morning. The stock outperformed the broader market indices with a +1.1% gain. Lack of follow through on yesterday's bearish reversal candlestick is a good sign.

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.

- Suggested Positions -

Long Apr $75 call (FB1419D75) entry $2.00

03/10/14 triggered on gap higher at $70.77, trigger was $70.75
03/08/14 adjust entry trigger from $71.25 down to $70.75

Entry on March 10 at $70.77
Average Daily Volume = 58 million
Listed on March 06, 2014


Intl. Flavors & Fragrances - IFF - close: 94.06 change: -0.22

Stop Loss: 92.95
Target(s): 99.50
Current Option Gain/Loss: -10.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12/14: We are a bit torn on our IFF trade. More conservative traders will want to seriously consider an immediate exit. The relative weakness today does not bode well. Yet shares still have potential support in the $93.00-93.50 area. Therefore we are going to reverse yesterday's decision to move the stop loss higher. Tonight we'll adjust the stop loss to $92.95. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $95 call (IFF1419D95) entry $1.50

03/12/14 new stop loss @ 92.95, Readers may want to just exit early now!
03/11/14 new stop loss @ 93.40
03/08/14 new stop loss @ 92.80
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


Lockheed Martin - LMT - close: 163.86 change: +0.06

Stop Loss: 159.90
Target(s): 169.75 & 174.75
Current Option Gain/Loss: -26.1%
Time Frame: exit prior to April option expiration
New Positions: see below

Comments:
03/12/14: LMT saw a decent bounce off its morning lows near $162.00. However, 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


Spirit Airlines - SAVE - close: 59.84 change: -0.66

Stop Loss: 57.25
Target(s): 65.00
Current Option Gain/Loss: -23.4%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/12/14: SAVE hit some profit taking today with a -1.0% decline. The intraday high was $60.21. I would use a new move above $60.30 as an entry point to launch bullish positions.

- Suggested Positions -

Long Apr $60 call (SAVE1419D60) entry $3.20

03/11/14 triggered @ 60.50

Entry on March 11 at $60.50
Average Daily Volume = 1.0 million
Listed on March 10, 2014


Constellation Brands Inc. - STZ - close: 83.11 change: +0.57

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:+ 29.4% & Apr$80c: +39.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/12/14: STZ briefly traded below short-term support at the $82 level but managed a rebound and closed up +0.69%. I am not suggesting new positions at this time.

Keep in mind that our March options expire in seven trading days.

Our target to exit the March $80 calls is STZ at $84.50.
Our target to exit the April $80 calls is STZ at $88.00.

- 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

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


Varian Medical Systems - VAR - close: 84.75 change: +0.04

Stop Loss: 83.40
Target(s): 89.75
Current Option Gain/Loss: -25.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12/14: Traders quickly bought the dip in shares of VAR this morning. The stock continues to look poised for a breakout past the $85 level. I would wait for a new rally above $85.00 before initiating positions.

The Point & Figure chart for VAR is bullish with a $91 target.

- Suggested Positions -

Long Apr $85 call (VAR1419D85) entry $2.08

03/11/14 triggered @ 85.05

Entry on March 11 at $85.05
Average Daily Volume = 573 thousand
Listed on March 08, 2014


Vulcan Materials - VMC - close: 66.93 change: -0.55

Stop Loss: 66.25
Target(s): 74.50
Current Option Gain/Loss: -53.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12/14: VMC is not cooperating. The stock gapped open lower this morning and underperformed the market with a -0.8% decline. I am suggesting an immediate exit tomorrow morning.

- Suggested Positions -

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

03/12/14 prepare to exit tomorrow morning!
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


VMware, Inc. - VMW - close: 106.87 change: +3.12

Stop Loss: 99.75
Target(s): 114.00
Current Option Gain/Loss: +40.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/12/14: Instead of following the market lower this morning shares of VMW shot higher. The stock reacted to positive analyst comments and shares outperformed with a +3.0% gain.

Our target is $114.00. More aggressive traders could aim higher. The point & figure chart just produced a brand new triple-top breakout buy signal this month and is forecasting at $121 target.

- Suggested Positions -

Long Apr $105 call (VMW1419D105) entry $3.50

03/11/14 triggered on gap higher at $104.08, suggested entry was $103.55

Entry on March 11 at $104.08
Average Daily Volume = 2.0 million
Listed on March 10, 2014




PUT Play Updates

Akamai Tech. - AKAM - close: 60.44 change: +0.21

Stop Loss: 61.25
Target(s): 55.10
Current Option Gain/Loss: -32.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/12/14: Hmm... AKAM did not see a big gain today but the recent action almost looks bullish. The stock is definitely not cooperating with us. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $57.50 put (AKAM1419P57.5) entry $1.42

03/11/14 triggered @ 58.95

Entry on March 11 at $58.95
Average Daily Volume = 3.0 million
Listed on March 10, 2014


Green Mountain Coffee Roasters - GMCR - cls: 108.60 chg: +2.37

Stop Loss: 112.25
Target(s): 101.00
Current Option Gain/Loss: + 29.8%
Time Frame: Exit prior to March option expiration
New Positions: see below

Comments:
03/12/14: Uh-oh! GMCR is now up two days in a row with today's +2.2% gain. Shares haven't seen a two-day gain in about four weeks. The stock has bounced back to short-term resistance at its simple 10-dma. More conservative traders may want to exit early now to lock in potential gains especially since the market looks poised to bounce tomorrow. Or as an alternative consider lowering their stop loss toward the $110.00 mark. I am not suggesting new positions.

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.

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


Twitter, Inc. - TWTR - close: 54.50 change: +0.48

Stop Loss: 56.15
Target(s): 50.25
Current Option Gain/Loss: -13.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/12/14: It was an interesting session for TWTR. The stock did not follow the market lower this morning. That is actually somewhat bullish. Yet the morning rally failed under the trend of lower highs, which is short-term bearish.

Our trade opened this morning at $54.25. Traders may want to wait for a new decline under $54.00 before considering new positions.

Earlier Comments:
TWTR currently has 544.7 million shares outstanding. There is a major lock up expiring on May 6th when another 474 million shares will come available for sale by insiders. It seems unlikely that TWTR is going to rally ahead of such a massive lock up expiration.

TWTR can be a volatile stock. Therefore we are suggesting small positions to limit risk.

- Suggested Positions -

Long Apr $50 PUT (TWTR1419P50) entry $1.80

03/12/14 trade opens at $54.25

Entry on March 12 at $54.25
Average Daily Volume = 11.4 million
Listed on March 11, 2014


The ExOne Company - XONE - close: 41.89 change: -0.54

Stop Loss: 45.10
Target(s): 40.25
Current Option Gain/Loss: +25.0%
Time Frame: exit PRIOR to earnings on March 19th
New Positions: see below

Comments:
03/12/14: XONE continues to sink and lost -1.27% today. I am starting to worry that XONE is not moving fast enough for us. We only have four trading days left. The plan is to exit prior to its earnings report on March 19th. I am not suggesting new positions. We will adjust the stop loss to $45.10.

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.

*Small Positions - Aggressive Trade*

Long MAR $40 PUT (XONE1422o40) entry $1.08

03/12/14 new stop @ 45.10
03/06/14 triggered @ 44.40

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