Editor's Note:

After falling last week the stock market produced a relief rally on Monday following the referendum in Crimea on Sunday.

IWM hit our entry trigger.


Current Portfolio:


CALL Play Updates

Chicago Bridge & Iron - CBI - close: 82.78 change: +1.80

Stop Loss: 80.90
Target(s): 89.50
Current Option Gain/Loss: -46.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/17/14: CBI shot higher with the market this morning. The rally stalled in the $83.20 area, below its 10-dma. 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: 63.75 change: +0.69

Stop Loss: 61.75
Target(s): 67.75
Current Option Gain/Loss: -80.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/17/14: The bounce in CNC stalled near the $64 area but shares did manage to close up +1.0%. I am not suggesting new positions at this time.

We only have FOUR trading days left on our March calls.

- 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


Greenbrier Companies - GBX - close: 46.81 change: +0.59

Stop Loss: 44.30
Target(s): April call target: $49.85, June call target: $53.50
Current Option Gain/Loss: Apr$50c: + 5.5% & Jun$50c: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/17/14: GBX briefly traded to a new all-time high before paring its gains. Shares are on the verge of breaking out past resistance near $47.00.

Earlier Comments:
Please note that I am setting two targets. If you choose the April calls then plan to exit at $49.85. If you choose the June calls then we're aiming for $53.50.

- Suggested Positions -

Long Apr $50 call (GBX1419D50) entry $0.90

- or -

Long Jun $50 call (GBX1421F50) entry $2.00

03/13/14 opened at $46.25

Entry on March 13 at $46.25
Average Daily Volume = 608 thousand
Listed on March 12, 2014


Russell 2000 ETF - IWM - close: 118.06 change: +0.52

Stop Loss: 115.25
Target(s): TBD
Current Option Gain/Loss: -7.2%
Time Frame: exit prior to May expiration
New Positions: see below

Comments:
03/17/14: Our new trade on the IWM was triggered quickly this morning. The IWM gapped open higher at $118.22 and spiked to $119.10 before trimming its gains. Our suggested entry point was hit at $118.25. It is interesting that the bounce today seemed to struggle with the IWM's simple 10-dma.

- Suggested Positions -

Long May $120 call (IWM1417E120) entry $2.50*

03/17/14 triggered @ 118.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on March 17 at $118.25
Average Daily Volume = 43 million
Listed on March 15, 2014


Lockheed Martin - LMT - close: 164.07 change: +1.65

Stop Loss: 159.90
Target(s): 169.75 & 174.75
Current Option Gain/Loss: -28.5%
Time Frame: exit prior to April option expiration
New Positions: see below

Comments:
03/17/14: LMT produced a +1.0% bounce but shares remain below short-term resistance near $165.00 and its 10-dma. 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: 60.88 change: +1.65

Stop Loss: 57.25
Target(s): 65.00
Current Option Gain/Loss: -10.9%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/17/14: SAVE displayed relative strength with a +2.78% gain and a new closing high. If you were waiting for a new rally above $60 as your entry point then you got it today!

- 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: 81.86 change: -0.64

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:+ 8.8% & Apr$80c: +15.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
03/17/14: STZ underperformed the market with a -0.77% decline thanks to a downgrade. Goldman Sachs downgraded their rating on the stock from a "buy" to a "neutral". The intraday low was $81.51. Our stop loss is at $81.45. I am not suggesting new positions at this time.

We have FOUR days left on our March options.

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: 84.64 change: +0.39

Stop Loss: 83.40
Target(s): 89.75
Current Option Gain/Loss: -32.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/17/14: The early morning gains faded and shares of VAR closed below resistance near $85.00. I am growing more defensive as VAR continues to struggle with resistance at $85.00.

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


VMware, Inc. - VMW - close: 109.74 change: +4.24

Stop Loss: 103.80
Target(s): 114.00
Current Option Gain/Loss: +100.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/17/14: VMW garnered new analyst coverage with a "buy" rating and a $125 price target. Shares responded with a +4.0% surge to new one-year highs.

Traders have a choice to make. Do you take profits now with VMW hovering at potential round-number resistance at the $110 level and our option up +100%? Or do you hold on, willing to endure a likely pullback, and continue to aim for $114.00?

I am not suggesting new positions at this time.

The simple 10-dma has risen to $104.00. We will adjust our stop loss to $103.80.

Earlier Comments:
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

03/17/14 new stop @ 103.80, traders may want to take profits now
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


Workday, Inc. - WDAY - close: 101.57 change: +0.66

Stop Loss: 98.70
Target(s): 110.00-115.00
Current Option Gain/Loss: -32.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/17/14: I am growing more concerned with our WDAY trade. The early rally faded and WDAY retested support near $100 before bouncing again. There is clearly a bearish trend of lower highs in place with short-term resistance at the 10-dma. Traders will want to wait for a rally past the 10-dma (currently near 103.15) before considering new positions.

Earlier Comments:
Our target is the $110-115 zone. We will tentatively set an exit target at $110.00 for now. The stock could move quickly. The most recent data listed short interest at 20% of the 80.2 million share float.

- Suggested Positions -

Long Apr $105 call (WDAY1419D105) entry $4.30

03/13/14 triggered on gap higher at $103.82. plan was a trigger @ 103.25

Entry on March 13 at $103.82
Average Daily Volume = 1.9 million
Listed on March 12, 2014




PUT Play Updates

Akamai Tech. - AKAM - close: 59.80 change: +0.27

Stop Loss: 61.05
Target(s): 55.10
Current Option Gain/Loss: -25.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
03/17/14: AKAM spiked higher with the market's rally this morning. Yet the rally in AKAM failed near the short-term trend of lower highs. I am inching our stop loss down to $61.05.

- Suggested Positions -

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

03/17/14 new stop @ 61.05
03/11/14 triggered @ 58.95

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


Charter Communications - CHTR - close: 126.49 change: -0.51

Stop Loss: 127.05
Target(s): 1st target: 120.50, 2nd target: $116.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
03/17/14: CHTR underperformed the market with a -0.4% decline on Monday. Shares look poised to retest support near $125.00 soon.

I am suggesting a trigger to open bearish positions at $124.60. If triggered I am setting two different targets. Our conservative target is $120.50, the February low. Our more aggressive target is $116.00. FYI: The Point & Figure chart for CHTR is bearish with a $110 target.

Trigger @ 124.60

- Suggested Positions -

Buy the APR $120 PUT (CHTR1419P120)

Entry on March -- at $---.--
Average Daily Volume = 2.5 million
Listed on March 13, 2014


State Street Corp. - STT - close: 65.44 change: +0.71

Stop Loss: 65.25
Target(s): 60.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
03/17/14: STT spiked up toward $66.00 this morning and then spent the rest of the day fading lower. I don't see any changes from the weekend newsletter's new play description on STT.

Earlier Comments:
I am suggesting a trigger to buy puts at $63.90. If triggered our short-term target is $60.25. More aggressive traders could aim lower. The Point & Figure chart for STT is bearish with a $53 target.

Trigger @ 63.90

- Suggested Positions -

Buy the Apr $65 PUT (STT1419P65)

Entry on March -- at $---.--
Average Daily Volume = 2.9 million
Listed on March 15, 2014


Twitter, Inc. - TWTR - close: 52.05 change: +0.13

Stop Loss: 56.15
Target(s): 46.50
Current Option Gain/Loss: +13.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/17/14: It was an interesting day for shares of TWTR. The stock did not participate in the market's surge higher this morning. Instead the stock chopped sideways and almost tagged its exponential 200-dma before bouncing. TWTR spent most of the session inside the $51.40-52.20 zone. I would not be surprised to see a bounce but the $54.00 area should be overhead resistance.

(Weekend comments)
I do expect that TWTR will see a short-term bounce on its test of the $50.00 mark. More conservative traders may want to take profits there anyway.

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

03/15/14 adjust exit target from $50.25 to $46.50
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