Editor's Note:

The stock market continued to sink on Monday. Traders are starting to talk of a market correction.

Most stocks continued to sink after Friday's bearish reversal and we saw several trades stopped out (ALK, CBI, DE, HAL, LMT, PSX, QCOM).

LNKD hit our bearish exit target. CELG and CME hit our new bearish entry points.

We want to exit our ASML trade tomorrow morning.


Current Portfolio:


CALL Play Updates

ASML Holdings - ASML - close: 89.97 change: -0.85

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: -71.0%
Time Frame: exit prior to earnings on April 16th
New Positions: see below

Comments:
04/07/14: ASML followed the market lower today and closed below what should have been support at $90.00 and its simple 200-dma. Yet somehow ASML did not hit our suggested stop loss at $89.75. The intraday low was $89.82.

Odds are good that ASML will hit our stop tomorrow. We're suggesting an immediate exit tomorrow morning.

- Suggested Positions -

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

04/07/14 prepare to exit tomorrow morning
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


3M Company - MMM - close: 134.40 change: -1.46

Stop Loss: 133.85
Target(s): to be determined.
Current Option Gain/Loss: - 7.7%
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: Yes, see below

Comments:
04/07/14: MMM followed the S&P 500 lower with both falling -1.0%. MMM's decline did break down below its 10-dma. The next level of potential support is $134.00.

- Suggested Positions -

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

04/05/14 new stop @ 133.85
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




PUT Play Updates

Celgene Corp. - CELG - close: 139.16 change: +1.78

Stop Loss: 143.15
Target(s): 127.00
Current Option Gain/Loss: -22.5%
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/07/14: The entire market collapses again on Monday but somehow the biotech stocks manage an oversold bounce. The BTK index was up +0.3% and the IBB added +0.6%. CELG outperformed them both with a +1.29% gain but first shares spiked down to new lows and hit our suggested entry point at $136.40.

The stock bounced twice near $135.50, this morning and again this afternoon. Suddenly CELG has produced a very short-term double bottom. Traders may want to wait for a new drop below $135.50 before initiating new bearish positions.

Earlier Comments:
Biotech stocks can be volatile so I am labeling this trade an aggressive, higher-risk trade. We want to use small positions to try and limit our risk.

*small positions* - Suggested Positions -

Long May $130 PUT (CELG1417Q130) entry $4.00*

04/07/14 triggered @ 136.40
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 07 at $136.40
Average Daily Volume = 4.3 million
Listed on April 05, 2014


CME Group Inc. - CME - close: 67.59 change: -3.01

Stop Loss: 71.25
Target(s): 62.50
Current Option Gain/Loss: +53.4%
Time Frame: Exit PRIOR to earnings on May 1st.
New Positions: see below

Comments:
04/07/14: Right on cue CME has broken down below major support near $70.00. Shares underperformed the market with a -4.2% drop and closed at new nine-month lows. Our suggested entry point was hit at $69.75.

I am lowering our stop loss to $71.25.

Earlier Comments:
Our target is $62.50. More aggressive traders could aim lower since the Point & Figure chart for CME is bearish with a $60 target.

- Suggested Positions -

Long May $70 PUT (CME1417Q70) entry $2.15*

04/07/14 new stop @ 71.25
04/07/14 triggered at $69.75

Entry on April 07 at $71.25
Average Daily Volume = 1.9 million
Listed on April 05, 2014



CLOSED BULLISH PLAYS

Alaska Air Group - ALK - close: 89.82 change: -2.51

Stop Loss: 90.75
Target(s): 99.75
Current Option Gain/Loss: -47.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/07/14: It's been a rough two days for ALK with a $5.00 drop from $95 to $support near $90.00. The intraday low was actually $88.95. Our stop was hit at $90.75. ALK could be headed for a correction into the $80-85 zone.

- Suggested Positions -

May $95 call (ALK1417E95) entry $3.45 exit $1.80* (-47.8%)

04/07/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/02/14 triggered @ 94.25

chart:

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


Chicago Bridge & Iron - CBI - close: 83.55 change: -2.52

Stop Loss: 85.45
Target(s): 94.75
Current Option Gain/Loss: -35.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/07/14: CBI was also hit hard by the market's two-day sell-off. Shares fell from Friday's intraday high of $89.22 to Monday's intraday low of $81.95 (a -8.1% move).

Today's move hit our stop at $85.45 pretty early today.

- Suggested Positions -

Apr $85 call (CBI1419D85) entry $2.80 exit $1.80* (-35.7%)

04/07/14 stopped out
04/05/14 new stop @ 85.45
04/03/14 new stop @ 83.75
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


Deere & Co - DE - close: 91.15 change: -0.68

Stop Loss: 90.75
Target(s): 98.50
Current Option Gain/Loss: -37.5%
Time Frame: exit PRIOR to earnings on May 14th
New Positions: see below

Comments:
04/07/14: DE traded just low enough to hit our stop loss at $90.75 before paring its losses. Our trade is closed but I would keep DE on your watch list. A dip near $90.00 could be a new entry point for bullish positions.

- Suggested Positions -

May $95 call (DE1417E95) entry $1.04 exit $0.65 (-37.5%)

04/07/14 stopped out
04/05/14 new stop @ 90.75
04/03/14 triggered @ 92.25

chart:

Entry on April 03 at $92.25
Average Daily Volume = 3.0 million
Listed on April 02, 2014


Halliburton Company - HAL - close: 57.36 change: -1.95

Stop Loss: 57.75
Target(s): to be determined
Current Option Gain/Loss: -52.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/07/14: HAL has confirmed Friday's bearish reversal candlestick with a -3.2% plunge today. The stock hit our stop loss at $57.75. The next level of support could be the $55 area.

- Suggested Positions -

May $60 call (HAL1417E60) entry $2.10* exit $0.99 (-52.8%)

04/07/14 stopped out
04/03/14 triggered @ 60.25

chart:

Entry on April 03 at $60.25
Average Daily Volume = 7.7 million
Listed on March 29, 2014


Lockheed Martin - LMT - close: 157.74 change: -1.87

Stop Loss: 158.95
Target(s): to be determined
Current Option Gain/Loss: Apr$160c: -51.5% & Jun$165c: -25.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/07/14: LMT has broken down below technical support at its 50-dma and hit our stop at $158.95.

- Suggested Positions -

Apr $160 call (LMT1419D160) entry $3.20 exit $1.55* (-51.5%)

- or -

Jun $165 call (LMT1421F165) entry $3.40* exit $2.55** (-25.0%)

04/07/14 stopped out
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.

chart:

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


Phillips 66 - PSX - close: 77.95 change: -1.62

Stop Loss: 78.70
Target(s): to be determined
Current Option Gain/Loss: -36.9%
Time Frame: Exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/07/14: PSX also confirmed Friday's reversal candlestick with a decline today. Shares underperformed with a -2.0% drop and hit our stop loss at $78.70 along the way.

- Suggested Positions -

May $80 call (PSX1417E80) entry $3.25* exit $2.05** (-36.9%)

04/07/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/04/14 triggered @ 81.10
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 04 at $81.10
Average Daily Volume = 3.1 million
Listed on April 03, 2014


QUALCOMM Inc. - QCOM - close: 78.08 change: -0.45

Stop Loss: 77.75
Target(s): to be determined
Current Option Gain/Loss: -42.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/07/14: QCOM traded below $78.00 and its 20-dma. Our stop loss was hit at $77.75. The stock actually gapped down at $78.00 and then spiked down to $77.60 before bouncing.

- Suggested Positions -

May $80 call (QCOM1417E80) entry $2.30 exit $1.32 (-42.6%)

04/07/14 stopped out
04/02/14 triggered @ 80.25

chart:

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


CLOSED BEARISH PLAYS

LinkedIn Corp. - LNKD - close: 159.65 change: - 6.18

Stop Loss: 170.85
Target(s): 161.00
Current Option Gain/Loss: +154.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/07/14: Target achieved.

LNKD hit our bearish exit target at $161.00. The intraday low was $158.06 but LNKD bounced back to close near what should be support at $160.00. The stock is down $30.00 in four sessions. Odds of an oversold bounce are building.

Earlier Comments:
The plan was to use small positions to limit our risk.

*small positions* - Suggested Positions -

MAY $175 PUT (LNKD1417Q175) entry $8.10 exit $20.65* (+154.9%)

04/07/14 target hit
04/05/14 new stop @ 170.85
04/01/14 trade opens on gap higher at $185.00

chart:

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