Editor's Note:

Early on the markets seemed to be sinking on worries over the Ukraine but equities reversed higher and back into the green with a strong afternoon bounce.

Double check your stop loss placement on any bearish plays. The market's bounce might have further to go.

LL hit our entry trigger.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 102.50 change: -0.28

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:
04/15/14: CAT's performance today was a bit disappointing. Shares did produce a slightly new higher low but they failed to close in positive territory. We're running out of time with earnings coming up.

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


Diamondback Energy, Inc. - FANG - close: 69.08 change: -1.04

Stop Loss: 67.75
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in May
New Positions: Yes, see below

Comments:
04/15/14: FANG did not see any follow through on yesterday's rally thanks to a downgrade this morning. Traders did buy the dip twice near $66.90. Currently we are on the sidelines waiting for a breakout higher.

Earlier Comments:
The stock looks poised to break out past resistance near $70.00. If that happens FANG could see some short covering. The most recent data listed short interest at 37% of the small 32.5 million share float. That's plenty of fuel for a short squeeze.

We are suggesting a trigger to buy calls at $71.25. We are not setting an exit target yet but plan to exit prior to earnings in mid May.

FYI: The Point & Figure chart for FANG is bullish with an $85 target.

Trigger @ 71.25

- Suggested Positions -

buy the May $75 call (FANG1417E75)

Entry on April -- at $---.--
Average Daily Volume = 948 thousand
Listed on April 14, 2014


Gulfport Energy - GPOR - close: 73.10 change: -0.90

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: -24.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/15/14: GPOR underperformed its peers in the energy industry today. I don't see any news today to explain the relative weakness. I warned readers to be cautious after yesterday's performance. The intraday low was $71.75, just 5 cents above our stop loss. I am not suggesting new positions.

- Suggested Positions -

Long May $75 call (GPOR1417E75) entry $3.85*

04/14/14 triggered @ 74.25

Entry on April 14 at $74.25
Average Daily Volume = 1.45 million
Listed on April 12, 2014


QUALCOMM Inc. - QCOM - close: 79.49 change: +0.35

Stop Loss: 77.40
Target(s): to be determined
Current Option Gain/Loss: - 2.1%
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: see below

Comments:
04/15/14: QCOM struggled with round-number resistance at the $80.00 level today. I would be tempted to buy calls on a breakout past $80 but we're running out of time before the company reports earnings.

Earlier Comments:
Prepare to exit prior to QCOM's earnings report on April 23rd.

- Suggested Positions -

Long MAY $80 call (QCOM1417E80) entry $1.87

04/09/14 opened on Wednesday morning.

Entry on April 09 at $79.26
Average Daily Volume = 2.0 million
Listed on April 08, 2014




PUT Play Updates

Advance Auto Parts - AAP - close: 117.20 change: +0.95

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: + 3.1%
Time Frame: exit PRIOR to earnings on May 15th
New Positions: see below

Comments:
04/15/14: Shares of AAP are hovering near technical support at the 100-dma. More conservative traders may want to lower their stop closer to the $119 level. I am not suggesting new positions at this time.

- Suggested Positions -

Long May $115 PUT (AAP1417Q115) entry $3.20

04/11/12 triggered @ 117.25

Entry on April 11 at $117.25
Average Daily Volume = 752 thousand
Listed on April 10, 2014


Avago Technologies - AVGO - close: 58.94 change: +0.12

Stop Loss: 60.35
Target(s): 53.00
Current Option Gain/Loss: -30.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/15/14: AVGO mimicked the move in the NASDAQ today with a drop to new relative lows and then a sharp bounce into the afternoon. This could be a potential reversal. More conservative traders may want to tighten their stop loss.

Earlier Comments:
FYI: It should not be a stock-moving event but investors may want to be aware that AVGO is in the process of acquiring LSI Logic for $6.6 billion. The acquisition is expected to be completed in the first half of 2014.

FYI: The Point & Figure chart for AVGO is bearish with a $52 target.

- Suggested Positions -

Long May $57.50 PUT (AVGO1417Q57.5) entry $2.10*

04/14/14 triggered @ 58.35

Entry on April 14 at $58..5
Average Daily Volume = 2.1 million
Listed on April 12, 2014


Lumber Liquidators - LL - close: 85.64 change: +0.94

Stop Loss: 88.35
Target(s): to be determined
Current Option Gain/Loss: - 24.6%
Time Frame: exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/15/14: The market's bounce today could be a problem for us. LL's move looks a lot like the NASDAQ's with a sharp drop to new lows that reversed midday. LL managed to outperform the major indices with a +1.1% gain by the closing bell. Unfortunately, our trigger to open bearish positions was hit at $83.80 on the way down this morning. More conservative traders may want to tighten their stops. I am not suggesting new positions at this time.

Earlier Comments:
Readers may want to use small positions because there are already a lot of bears in this name. The most recent data listed short interest at 27% of the small 24.4 million share float. That could make any bounce a volatile one.

Plan on exiting prior to LL's earnings report on April 30th. We are not setting an exit target just yet. FYI: The Point & Figure chart for LL is bearish with a $72 target.

- Suggested Positions -

Long May $80 PUT (LL1417Q80) entry $3.25*

04/15/14 triggered @ 83.80
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 15 at $83.80
Average Daily Volume = 761 thousand
Listed on April 14, 2014


Lockheed Martin Corp. - LMT - close: 157.39 change: +1.57

Stop Loss: 158.25
Target(s): 146.00
Current Option Gain/Loss: -36.1%
Time Frame: exit PRIOR to earnings on April 22nd
New Positions: see below

Comments:
04/15/14: LMT's bounce managed to outperform the major indices with a +1.0% gain. If there is any follow through higher tomorrow we could see LMT hit our stop loss at $158.25. I'm worried that LMT is just going to bounce up to $160.00 and then roll over again.

Earlier Comments:
Our target is $146.00 but keep a wary eye on the $150.00 mark, which is potential round-number support.

This is a short-term trade. LMT is scheduled to report earnings on April 22nd and we do not want to hold over the announcement.

- Suggested Positions -

Long May $150 PUT (LMT1417Q15) entry $2.35*

04/12/14 triggered @ 154.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 11 at $154.50
Average Daily Volume = 1.7 million
Listed on April 10, 2014