Editor's Note:

The U.S. market's major indices snapped a three-day sell-off with a bounce on Tuesday.

ASML was closed this morning. MMM was stopped out.
CAT and CHTR hit our entry triggers.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 102.39 change: +1.28

Stop Loss: 99.75
Target(s): 109.00
Current Option Gain/Loss: + 3.9%
Time Frame: exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/08/14: Just as we expected shares of CAT bounced today. The stock hit our suggested entry point at $102.35 and outperformed the major indices with a +1.26% gain. The next hurdle for the bulls appears to be potential resistance in the $103.25-103.50 zone.

Earlier Comments:
Our exit target is $109.00. However, we do not have much time for CAT to perform. The company is scheduled to report earnings on April 24th and we do not want to hold over the announcement.

- Suggested Positions -

Long MAY $105 call (CAT1417E105) entry $1.52

04/08/14 triggered @ 102.35

Entry on April 08 at $102.35
Average Daily Volume = 5.9 million
Listed on April 07, 2014




PUT Play Updates

Celgene Corp. - CELG - close: 138.22 change: -0.94

Stop Loss: 143.15
Target(s): 127.00
Current Option Gain/Loss: -18.7%
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/08/14: After a big bounce yesterday the biotech stocks did not participate in the market's rebound today. CELG failed at short-term resistance near $140.00 again and closed with a -0.6% decline.

Readers may want to wait for a drop below yesterday's low $135.50 before considering new 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


Charter Communications - CHTR - close: 121.15 change: +2.21

Stop Loss: 122.25
Target(s): 110.50
Current Option Gain/Loss: -60.3%
Time Frame: exit PRIOR to earnings on April 28th
New Positions: see below

Comments:
04/08/14: CHTR is not cooperating. Shares followed the market lower this morning and hit our suggested entry point at $118.25. However, when the stock market rebounded off its 10:30 a.m. low, shares of CHTR outperformed and surged to close up +1.85% (+3.3% from its low today).

The close back above $120.00 is technically bullish. Our stop is at $122.25 and if CHTR sees any follow through higher tomorrow odds are we will be stopped out.

NOTE: Our entry price at $5.80 seems a bit excessive. Yesterday the option closed with a bid/ask of $3.10/3.50. A 70-cent drop should not have lifted the option price more than $2.00.

Earlier Comments:
The Point & Figure chart for CHTR is bearish with a $110 target.

- Suggested Positions -

Long May $115 PUT (CHTR1417Q115) entry $5.80

04/08/14 triggered at $118.25
Entry price at $5.80 seems excessive.

Entry on April 08 at $118.25
Average Daily Volume = 995 thousand
Listed on April 07, 2014


CME Group Inc. - CME - close: 69.13 change: +1.54

Stop Loss: 71.25
Target(s): 62.50
Current Option Gain/Loss: +11.6%
Time Frame: Exit PRIOR to earnings on May 1st.
New Positions: see below

Comments:
04/08/14: CME was making headlines this morning. Their futures market was suffering some technical issues. CME halted about two dozen contracts on its Globex futures and options exchange, including futures on corn, wheat, lean hog futures, feeder cattle, live cattle, and some milk contracts. CME said they had the problem fixed by 2:30 p.m.

Meanwhile shares of CME bounced and recovered half of yesterday's losses. Watch for potential resistance at the $70.00 level.

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

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:
04/08/14: We decided in last night's newsletter to exit our ASML trade this morning. That appeared to be the right move with ASML underperforming the market today. Shares opened at $89.91 this morning.

- Suggested Positions -

Apr $95 call (ASML1419D95) entry $1.90* exit $0.55** (-71.0%)

04/08/14 planned exit this morning.
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


3M Company - MMM - close: 134.84 change: -0.44

Stop Loss: 133.85
Target(s): to be determined.
Current Option Gain/Loss: -16.9%
Time Frame: Exit PRIOR to earnings on April 24th
New Positions: Yes, see below

Comments:
04/08/14: The stock market's dip in the first 90 minutes of trading today was too much for MMM. Shares followed the market lower, hitting our stop loss at $133.85, and then followed the market higher.

- Suggested Positions -

May $135 call (MMM1417E135) entry $2.95* exit $2.45** (-16.9%)

04/08/14 stopped out
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.

chart:

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