Editor's Note:

The Friday morning rally faded but the major indices still managed to close with gains.

CHTR has been removed. We are suggesting an immediate exit for the AEGR, MNST, and TGT trades.


Current Portfolio:


CALL Play Updates

ASML Holdings - ASML - close: 91.83 change: -0.14

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: -36.8%
Time Frame: exit prior to earnings on April 16th
New Positions: see below

Comments:
03/29/14: ASML delivered a quiet session on Friday with shares hovering near their simple 10-dma. It is disappointing to see the stock fail to participate in the market's bounce on Friday. I am not suggesting new positions at this time.

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: 85.06 change: +1.38

Stop Loss: 82.85
Target(s): 94.75
Current Option Gain/Loss: -33.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
03/29/14: CBI delivered a strong bounce on Friday, outperforming the market with a +1.6% gain. We are raising our stop loss up to $82.85.

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

03/29/14 new stop @ 82.85
03/26/14 new stop @ 81.30
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


CVS Caremark - CVS - close: 74.26 change: +0.13

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: -34.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/29/14: CVS spent most of Friday's session drifting sideways. The intraday low was $73.85. I would wait for a new rally past $75.00 before initiating new positions.

- Suggested Positions -

Long May $75 call (CVS1417E75) entry $2.23

03/26/14 triggered on gap higher at $75.78, suggested trigger was $75.10

chart:

Entry on March 26 at $75.78
Average Daily Volume = 5.4 million
Listed on March 24, 2014


Lockheed Martin - LMT - close: 160.54 change: +1.66

Stop Loss: 157.90
Target(s): to be determined
Current Option Gain/Loss: Apr$160c: -12.5% & Jun$165c: - 5.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/29/14: LMT shot higher on Friday morning but momentum stalled shortly after 10:00 a.m. Traders may want to wait for a rise past $162.00 before considering new bullish positions. We are moving our stop loss to $157.90.

- Suggested Positions -

Long Apr $160 call (LMT1419D160) entry $3.20

- or -

Long Jun $165 call (LMT1421F165) entry $3.40*

03/29/14 new stop @ 157.90
03/25/14 triggered @ 160.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on March 25 at $160.75
Average Daily Volume = 2.0 million
Listed on March 24, 2014


3M Company - MMM - close: 134.20 change: +1.36

Stop Loss: 131.40
Target(s): to be determined.
Current Option Gain/Loss: -20.3%
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: Yes, see below

Comments:
03/29/14: MMM displayed some relative strength on Friday with a +1.0% gain. Shares are now poised to challenge short-term resistance near $135.00. More conservative traders may want to move their stop closer to $132.00.

- Suggested Positions -

Long May $135 call (MMM1417E135) entry $2.95*

03/26/14 triggered @ 134.66, suggested entry was $134.65
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on March 26 at $134.65
Average Daily Volume = 3.0 million
Listed on March 25, 2014


Cimarex Energy Co. - XEC - close: 119.75 change: +3.03

Stop Loss: 113.75
Target(s): 128.50
Current Option Gain/Loss: Apr$120c: - 5.4% & Jun$125c: - 1.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
03/29/14: Some of the energy names were showing relative strength on Friday. XEC was leading the way with a +2.59% gain. XEC did fail to maintain its breakout past resistance at the $120.00 level. If you are looking for an entry point consider waiting for a rise past $120.75 again.

- Suggested Positions -

Long APR $120 call (XEC1419D120) entry $3.49

- or -

Long JUN $125 call (XEC1421F125) entry $5.40

03/27/14 new stop @ 113.75
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

Aegerion Pharmaceuticals - AEGR - close: 44.87 change: +1.22

Stop Loss: 48.25
Target(s): 40.25
Current Option Gain/Loss: +31.8%
Time Frame: exit PRIOR to April expiration
New Positions: see below

Comments:
03/29/14: Warning! AEGR's performance on Friday is concerning.

The stock traded down to $40.50. Traders bought the dip there twice in rapid succession and then AEGR rebounded higher. By Friday's closing bell AEGR was outperforming the market with a +2.8% gain. This could just be an oversold bounce but it could also be a bullish reversal near support at $40.00. Unfortunately our exit target was $40.25.

We are suggesting an immediate exit now to try and lock in any potential gains.

Earlier Comments:
I am suggesting small positions because biotech stocks can be volatile and AEGR already has short interest nearing 20% of its small 28.3 million share float. The Point & Figure chart for AEGR is bearish with a $41 target.

*small positions to limit risk*

Long Apr $45 PUT (AEGR1419P45) entry $2.20*

03/29/14 exit immediately on Monday morning.
03/27/14 new stop @ 48.25
03/24/13 triggered @ 46.90

chart:

Entry on March 24 at $46.90
Average Daily Volume = 1.3 million
Listed on March 22, 2014


Allergan Inc. - AGN - close: 121.05 change: +0.52

Stop Loss: 124.10
Target(s): 116.20
Current Option Gain/Loss: - 8.3%
Time Frame: exit PRIOR to April expiration
New Positions: see below

Comments:
03/29/14: Citigroup raised their price target on AGN from $130 to $140 on Friday morning. Shares of AGN reacted with a spike higher from $120.50 to $123.75. After briefly trading above technical resistance at the 50-dma AGN reversed. This move could be used as a new bearish entry point. We are moving our stop loss down to $124.10.

- Suggested Positions -

Long Apr $120 PUT (AGN1419P120) entry $3.60

03/29/14 new stop @ 124.10
03/27/14 triggered @ 121.90

chart:

Entry on March 27 at $121.90
Average Daily Volume = 2.5 million
Listed on March 26, 2014


Monster Beverage - MNST - close: 69.49 change: +0.93

Stop Loss: 70.10
Target(s): 63.00
Current Option Gain/Loss: -52.9%
Time Frame: exit prior to April expiration
New Positions: see below

Comments:
03/29/14: The bearish momentum in MNST is stalling. The stock spent Tuesday, Wednesday, and Thursday consolidating sideways. Friday's bounce is a breakout above the 10-dma. MNST should still have resistance at the $70.00 mark and likely at its 50-dma (near 70.55). However, we are choosing to exit early now to avoid further losses. Plan on exiting Monday morning.

- Suggested Positions -

Long APR $65 PUT (MNST1419P65) entry $0.85

03/29/14 prepare to exit on Monday morning
03/27/14 new stop @ 70.10
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


Target Corp. - TGT - close: 59.98 change: +0.24

Stop Loss: 60.20
Target(s): 55.15
Current Option Gain/Loss: -47.0%
Time Frame: exit PRIOR to April expiration
New Positions: see below

Comments:
03/29/14: I have been cautioning readers about the lack of follow through lower in shares of TGT this past week. The stock looks like it is coiling for a breakout higher, past resistance near $60.00.

Tonight we're suggesting an immediate exit on Monday morning to cut our losses early.

- Suggested Positions -

Long Apr $60 PUT (TGT1419P60) entry $1.68

03/29/14 prepare to exit on Monday morning
03/27/14 new stop @ 60.20
03/25/14 triggered @ 58.80

chart:

Entry on March 25 at $58.80
Average Daily Volume = 6.9 million
Listed on March 22, 2014


Twitter, Inc. - TWTR - close: 47.30 change: +0.98

Stop Loss: 47.35
Target(s): 41.85
Current Option Gain/Loss: +105.5%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
03/29/14: TWTR almost hit our stop loss on Friday.

The oversold bounce in shares of TWTR continued on Friday with a +2.1% gain. The intraday high was $47.34. Our stop loss is at $47.35. If there is any follow through higher on Monday we will see shares hit our stop.

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

03/26/14 new stop @ 47.35
03/25/14 new stop @ 53.55
03/24/14 new stop @ 54.15
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 BEARISH PLAYS

Charter Communications - CHTR - close: 122.41 change: +1.15

Stop Loss: 122.55
Target(s): 110.25
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to April expiration
New Positions: see below

Comments:
03/29/14: CHTR is not cooperating. We were hoping for a breakdown below support near $120. Shares outperformed the market instead with a +0.9% gain on Friday.

Our trade is not open yet. Tonight we're removing CHTR as a candidate. Readers may want to keep this stock on their radar screen for a breakdown below support.

Trade did not open

03/29/14 removed from the newsletter, suggested trigger was $119.75

chart:

Entry on March -- at $---.--
Average Daily Volume = 1.2 million
Listed on March 27, 2014