Editor's Note:

The S&P 500 index is up four days in a row and closed at new all-time highs.

ALK, QCOM, and RAX hit our entry triggers.
CVS was closed this morning. We want to exit our XEC trade tomorrow morning.


Current Portfolio:


CALL Play Updates

Alaska Air Group - ALK - close: 94.88 change: +0.78

Stop Loss: 90.75
Target(s): 99.75
Current Option Gain/Loss: + 4.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02/14: As expected the rally in ALK continued today and shares hit our suggested entry point at $94.25 this morning. I would still consider new positions now at current levels. The breakout past resistance at $94.00 is bullish.

- Suggested Positions -

Long May $95 call (ALK1417E95) entry $3.45

04/02/14 triggered @ 94.25

Entry on April 02 at $94.25
Average Daily Volume = 692 thousand
Listed on March 31, 2014


ASML Holdings - ASML - close: 93.21 change: -0.36

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: -18.4%
Time Frame: exit prior to earnings on April 16th
New Positions: see below

Comments:
04/02/14: The action in ASML was disappointing with shares underperforming the market. Traders did buy the dip near its rising 10-dma. 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.

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


Chicago Bridge & Iron - CBI - close: 87.65 change: +0.43

Stop Loss: 82.85
Target(s): 94.75
Current Option Gain/Loss: +14.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02/14: CBI added +0.49% to close at a new record high. More conservative traders may want to raise their stop loss again. I am not suggesting new positions at this time.

Our target is $94.75. More conservative traders may want to exit near $90.00, which could be potential round-number resistance.

- 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

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


Tableau Software, Inc. - DATA - close: 77.74 change: -3.44

Stop Loss: 74.75
Target(s): 87.50
Current Option Gain/Loss: Apr80c: -19.2% & May80c: + 3.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/02/14: Ouch! What happened to DATA today? The stock reversed with a -4.2% decline. I don't see any news that might account for this relative weakness. Volume on the session was about average. Technically today's move has created a bearish engulfing candlestick reversal pattern. More conservative traders may want to consider an early exit right now. I am not suggesting new positions.

Earlier Comments:
The stock could see some short covering. The most recent data listed short interest at 13% of the small 29 million share float.

April options have less than three weeks left.

- Suggested Positions -

Long Apr $80 call (DATA1419D80) entry $2.60*

- or -

Long May $80 call (DATA1417E80) entry $5.80*

04/01/14 new stop @ 74.75
03/31/14 triggered @ 76.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on March 31 at $76.50
Average Daily Volume = 1.7 million
Listed on March 29, 2014


Halliburton Company - HAL - close: 59.93 change: +0.30

Stop Loss: 57.75
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
04/02/14: HAL is still drifting higher and flirting with a breakout past resistance at $60.00.

We're suggesting a trigger to buy calls at $60.25. We are not setting an exit target yet.

Trigger @ 60.25

- Suggested Positions -

Buy the May $60 call (HAL1417E60) current ask $1.96

Entry on March -- at $---.--
Average Daily Volume = 7.7 million
Listed on March 29, 2014


Lockheed Martin - LMT - close: 164.70 change: +0.99

Stop Loss: 158.95
Target(s): to be determined
Current Option Gain/Loss: Apr$160c: +65.6% & Jun$165c: +41.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/02/14: LMT rebounded off its early morning lows and managed to outpace the major indices with a +0.6% gain. The simple 50-dma has risen to $159.11. We will adjust our stop loss to $158.95. More conservative traders may want to use a higher stop.

- Suggested Positions -

Long Apr $160 call (LMT1419D160) entry $3.20

- or -

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

04/02/14 new stop @ 158.95
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.

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


3M Company - MMM - close: 136.00 change: -0.53

Stop Loss: 131.90
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:
04/02/14: MMM delivered a quiet session with shares churning on either side of the $136.00 level.

- Suggested Positions -

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

04/01/14 new stop @ 131.90
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.

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


QUALCOMM Inc. - QCOM - close: 80.14 change: +0.04

Stop Loss: 77.75
Target(s): to be determined
Current Option Gain/Loss: - 21.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02/14: QCOM managed to eke out a small gain on Wednesday. Shares also tagged our suggested entry point at $80.25. The intraday high just happened to be $80.26. Readers may want to wait for a more convincing move higher before initiating new positions.

Earlier Comments:
The $80.00 level could be round-number, psychological resistance. Therefore we're suggesting a trigger to buy calls at $80.25. We're not setting an exit target yet but the Point & Figure chart for QCOM is bullish with a $90 target.

- Suggested Positions -

Long May $80 call (QCOM1417E80) entry $2.30

04/02/14 triggered @ 80.25

Entry on April 02 at $80.25
Average Daily Volume = 10.5 million
Listed on March 29, 2014


Cimarex Energy Co. - XEC - close: 118.33 change: +0.04

Stop Loss: 114.75
Target(s): 128.50
Current Option Gain/Loss: Apr$120c: -39.8% & Jun$125c: -18.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/02/14: XEC hit new all-time highs last week. Yet the stock has been unable to build on this move. The $120 level is holding shares back as overhead resistance. The last three days has seen XEC underperforming some of its peers in the energy sector.

More aggressive traders may want to hold on since the larger trend for XEC is still bullish. We are choosing an early exit and suggesting traders exit tomorrow morning.

- Suggested Positions -

Long APR $120 call (XEC1419D120) entry $3.49

- or -

Long JUN $125 call (XEC1421F125) entry $5.40

04/02/14 prepare to exit tomorrow morning
04/01/14 new stop @ 114.75
03/27/14 new stop @ 113.75
03/21/14 triggered @ 118.25

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




PUT Play Updates

LinkedIn Corp. - LNKD - close: 183.38 change: -4.58

Stop Loss: 194.05
Target(s): 161.00
Current Option Gain/Loss: + 6.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/02/14: Good news for LNKD bears. The stock failed at the $190.00 level today and reversed into a -2.4% decline, underperforming the market. Today's move could be used as a new entry point or more conservative traders may want to wait for a drop under the March intraday low of $178.25.

The plan was to use small positions to limit our risk.

*small positions* - Suggested Positions -

Long MAY $175 PUT (LNKD1417Q175) entry $8.10

04/01/14 trade opens on gap higher at $185.00

Entry on April 01 at $185.00
Average Daily Volume = 2.5 million
Listed on March 31, 2014


Rackspace Hosting - RAX - close: 31.76 change: -0.53

Stop Loss: 33.25
Target(s): to be determined
Current Option Gain/Loss: - 3.8%
Time Frame: Exit PRIOR to earnings in early May
New Positions: see below

Comments:
04/02/14: RAX continued to drift lower on Wednesday and hit our suggested entry point for bearish positions at $31.90. I don't see any changes from last night's new play description.

Earlier Comments:
There is a chance that the $30.00 level could be round-number support but we're aiming lower. We're not setting a firm exit target yet but the Point & Figure chart for RAX is bearish with a $21 target.

- Suggested Positions -

Long MAY $30 PUT (RAX1417Q30) entry $1.56

04/02/14 triggered @ 31.90

Entry on April 02 at $31.90
Average Daily Volume = 2.2 million
Listed on April 01, 2014



CLOSED BULLISH PLAYS

CVS Caremark - CVS - close: 74.77 change: +0.48

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: -43.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/02/14: CVS has not been performing to our expectations. We decided in last night's newsletter to exit early this morning. Unfortunately, CVS gapped lower at $73.90 this morning (-29 cents).

- Suggested Positions -

May $75 call (CVS1417E75) entry $2.23 exit $1.25* (-43.9%)

04/02/14 planned exit this morning
04/01/14 prepare to exit tomorrow morning
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