Editor's Note:

Friday was a quadruple-witching options and futures expiration day. The majority of stocks closed near their lows of the session.

We had already planned to close VAR and WDAY on Friday morning.
CLVS was stopped out. We are removing CHTR.
XEC was triggered.


Current Portfolio:


CALL Play Updates

ASML Holdings - ASML - close: 92.39 change: -0.09

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: -15.7%
Time Frame: exit prior to earnings on April 16th
New Positions: see below

Comments:
03/22/14: Shares of ASML spiked higher on Friday morning and almost hit the $94 level before paring its gains. The stock eventually pulled back to unchanged and then closed negative with a fractional loss. Broken resistance near $92.00 should be new support but if that level fails then we can look for support near $90.00.

FYI: The Point & Figure chart for ASML is bullish with a $104 target.

- Suggested Positions -

Long Apr $95 call (ASML1419D95) entry $1.90*

03/19/14 triggered @ 92.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on March 19 at $92.25
Average Daily Volume = 1.6 million
Listed on March 18, 2014


Chicago Bridge & Iron - CBI - close: 86.87 change: +0.92

Stop Loss: 80.90
Target(s): 94.75
Current Option Gain/Loss: +14.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/22/14: CBI spent most of the day inside an 80-cent range but managed to set a new closing high. More conservative traders may want to raise their stop loss.

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

03/18/14 adjust exit target from $89.50 to $94.75
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


Greenbrier Companies - GBX - close: 45.87 change: -0.25

Stop Loss: 44.30
Target(s): April call target: $49.85, June call target: $54.75
Current Option Gain/Loss: Apr$50c: -44.4% & Jun$50c: -20.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/22/14: I am starting to worry about our GBX trade. The move from Wednesday to Friday looks like a potential bearish reversal. Plus the weekly chart has produced a bearish engulfing candlestick reversal pattern. More conservative traders will want to seriously consider raising their stop loss toward the $45.40 area. I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $50 call (GBX1419D50) entry $0.90

- or -

Long Jun $50 call (GBX1421F50) entry $2.00

03/18/14 adjust exit target for June calls from $53.50 to $54.75
03/13/14 opened at $46.25

chart:

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


Russell 2000 ETF - IWM - close: 118.61 change: -0.55

Stop Loss: 115.25
Target(s): TBD
Current Option Gain/Loss: - 5.6%
Time Frame: exit prior to May expiration
New Positions: see below

Comments:
03/22/14: The IWM reversed from its Friday morning highs and closed near its lows for the session. That doesn't bode well for Monday morning. Nearest support might be $118.00. I am not suggesting new positions at this time.

- 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.

chart:

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


Spirit Airlines - SAVE - close: 59.80 change: -2.18

Stop Loss: 58.45
Target(s): 67.50
Current Option Gain/Loss: -37.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
03/22/14: SAVE plunged back toward round-number support near $60 with a -3.5% drop on Friday. More conservative traders might want to consider a stop loss closer to Friday's low (59.55). I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $60 call (SAVE1419D60) entry $3.20

03/18/14 new stop @ 58.45, adjust exit target from $65.00 to $67.50
03/11/14 triggered @ 60.50

chart:

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


VMware, Inc. - VMW - close: 109.21 change: -1.46

Stop Loss: 106.45
Target(s): 114.75
Current Option Gain/Loss: + 71.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/22/14: VMW had its price target raised by another analyst firm on Friday morning. This time to $124. In response the stock produced a small gap open higher at $111.19. Unfortunately gains faded as the market turned south. It is interesting to note that VMW found support near $108.30 for the second time in three days on Friday afternoon.

The simple 10-dma has risen to $107.23. We will adjust our stop loss to $106.45.

I am not suggesting new positions at this time.

- Suggested Positions -

Long Apr $105 call (VMW1419D105) entry $3.50

03/22/14 new stop @ 106.45
03/20/14 new stop @ 105.85
03/18/14 new stop @ 104.45, adjust exit target from $114.00 to $114.75
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

chart:

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


Cimarex Energy Co. - XEC - close: 119.05 change: +2.63

Stop Loss: 112.45
Target(s): 128.50
Current Option Gain/Loss: Apr$120c: + 6.0% & Jun$125c: + 7.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/22/14: XEC displayed relative strength on Friday. Shares rallied while the rest of the market was sinking. More importantly XEC broke out past resistance to hit new highs. Our trigger to buy calls was hit at $118.25.

- Suggested Positions -

Long APR $120 call (XEC1419D120) entry $3.49

- or -

Long JUN $125 call (XEC1421F125) entry $5.40

03/21/14 triggered @ 118.25

chart:

Entry on March 21 at $118.25
Average Daily Volume = 1.3 million
Listed on March 20, 2014




PUT Play Updates

Monster Beverage - MNST - close: 68.83 change: -0.82

Stop Loss: 71.10
Target(s): 63.00
Current Option Gain/Loss: -17.6%
Time Frame: exit prior to April expiration
New Positions: see below

Comments:
03/22/14: MNST saw some volatility on Friday morning with an early spike higher. Shares pierced the 50-dma but quickly reversed. The intraday high was $70.90. I am moving our stop loss down to $71.10.

Earlier Comments:
Our target is $63.00 (just above the 200-dma). More conservative traders may want to exit near $65.00, which could be new support. FYI: The Point & Figure chart for MNST is bearish with a $64 target.

- Suggested Positions -

Long APR $65 PUT (MNST1419P65) entry $0.85

03/22/14 new stop @ 71.10
03/20/14 triggered @ 69.00

chart:

Entry on March 20 at $69.00
Average Daily Volume = 1.7 million
Listed on March 19, 2014


Twitter, Inc. - TWTR - close: 50.92 change: +0.80

Stop Loss: 55.15
Target(s): 41.85
Current Option Gain/Loss: +27.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/22/14: Dip buyers are still defending TWTR near round-number, psychological support in the $50.00 area. I have been cautioning readers that TWTR could bounce in this area. Look for short-term resistance in the $52-53 region. I am not suggesting 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

03/20/14 new stop @ 55.15
03/18/14 adjust the exit target from $46.50 to $41.85
03/15/14 adjust exit target from $50.25 to $46.50
03/12/14 trade opens at $54.25

chart:

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



CLOSED BULLISH PLAYS

Clovis Oncology, Inc. - CLVS - close: 79.91 change: -5.89

Stop Loss: 82.95
Target(s): 99.00
Current Option Gain/Loss: -31.0%
Time Frame: exit prior to April expiration
New Positions: see below

Comments:
03/22/14: There was a lot of talk about a potential bubble in biotech stocks on Friday and it seems that everyone hit the sell button at once. Several big name biotechs were down multiple points on Friday. The group was one of the worst performers with the $BTK index down -3.9% and the IBB biotech ETF down -4.7%. CLVS was an underperformer with a -6.8% plunge toward round-number support at $80.00. The intraday low was actually $78.58. Our stop loss on CLVS was hit at $82.95.

Earlier Comments:
I want to remind readers that trading biotech stocks should be considered higher-risk. The wrong headline about a clinical trial, or some step in the FDA approval process could send a biotech stock crashing. Of course the opposite is true as well. CLVS can see some wide intraday swings so expect volatility and use small positions to limit your risk.

- Suggested Positions -

Apr $95 call (CLVS1419D95) entry $5.00* exit $3.45 (-31.0%)

03/21/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/20/14 opened this morning at $86.38
*option entry price is an estimate since the option did not trade at the time our play was opened.
03/19/14 This is a higher-risk trade!

chart:

Entry on March 20 at $86.38
Average Daily Volume = 498 thousand
Listed on March 19, 2014


Varian Medical Systems - VAR - close: 83.84 change: -0.41

Stop Loss: 83.40
Target(s): 89.75
Current Option Gain/Loss: -35.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/22/14: In the Thursday night newsletter we decided to close our VAR trade and exit on Friday morning. Shares were kind enough to gap open higher to $84.82 before reversing lower.

- Suggested Positions -

Apr $85 call (VAR1419D85) entry $2.08 exit $1.35* (-35.0%)

03/21/14 planned exit Friday morning. *option exit price is an estimate since the option did not trade at the time our play was closed.
03/20/14 prepare to exit
03/11/14 triggered @ 85.05

chart:

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


Workday, Inc. - WDAY - close: 97.10 change: -3.05

Stop Loss: 99.65
Target(s): 114.00
Current Option Gain/Loss: -43.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/22/14: WDAY is another stock that we had decided to exit on Thursday morning. We were fortunate that WDAY shares gapped open higher to $101.00 on Friday morning (+0.85) before plunging through support near $100 and closing with a -3.0% decline.

- Suggested Positions -

Apr $105 call (WDAY1419D105) entry $4.30 exit $2.43* (-43.4%)

03/21/14 planned exit
*option exit price is an estimate since the option did not trade at the time our play was closed.
03/20/14 prepare to exit tomorrow morning
03/19/14 new stop @ 99.65
03/18/14 adjust target to $114.00
03/13/14 triggered on gap higher at $103.82. plan was a trigger @ 103.25

chart:

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


CLOSED BEARISH PLAYS

Charter Communications - CHTR - close: 127.25 change: +0.55

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:
03/22/14: CHTR is not cooperating. Instead of participating in the market's sell-off on Friday the stock bounced.

Our trade has not opened yet so we are removing CHTR as a candidate.

Trade did not open.

03/22/14 removed from the newsletter, suggested trigger was $124.60
03/19/14 use small positions.

chart:

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