Editor's Note:

The market's sharp intraday rebound from Tuesday continued today and the market's major indices posted gains.

EOG, FANG, and IWM hit our entry triggers.

LMT hit our stop loss.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 102.93 change: +1.03

Stop Loss: 99.75
Target(s): 109.00
Current Option Gain/Loss: + 8.5%
Time Frame: exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/16/14: CAT managed to keep pace with the S&P 500's bounce today. Shares of CAT remain below resistance in the $103.50 area. 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


EOG Resources - EOG - close: 101.01 change: -0.10

Stop Loss: 98.75
Target(s): 109.00
Current Option Gain/Loss: -19.4%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/16/14: EOG shot higher this morning but failed at the $102.00 level. EOG spent the rest of the day churning sideways and closed virtually unchanged on the session. That's disappointing considering the market's broad based rebound today.

EOG's strength this morning did hit our suggested entry point at $101.75. At this point I would wait for a new rally above $101.60 or look for a bounce from the $100.00 level as an alternative entry point.

- Suggested Positions -

Long May $105 call (EOG1417E105) entry $1.90*

04/16/14 triggered @ 101.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 16 at $101.75
Average Daily Volume = 2.9 million
Listed on April 15, 2014


Diamondback Energy, Inc. - FANG - close: 70.49 change: +1.41

Stop Loss: 67.75
Target(s): to be determined
Current Option Gain/Loss: -14.7%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/16/14: Shares of FANG garnered some bullish analyst comments and a new $85 price target this morning. That helped the stock hit new highs on an intraday basis and close up +2.0%. Our suggested entry point to buy calls was hit at $71.25. If you're looking for a new entry point I'd wait for a new rise past $71.00 or $71.25 before initiating positions.

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

- Suggested Positions -

Long May $75 call (FANG1417E75) entry $1.70*

04/16/14 triggered @ 71.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 16 at $71.25
Average Daily Volume = 948 thousand
Listed on April 14, 2014


Gulfport Energy - GPOR - close: 75.19 change: +2.09

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: - 1.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/16/14: GPOR was given a $100 price target this morning. That helped shares surged +2.85% today and close above the $75.00 level. Today's move looks like a new entry point for the bulls.

- 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


iShares Russell 2000 ETF - IWM - close: 112.36 change: +1.21

Stop Loss: 108.60
Target(s): to be determined
Current Option Gain/Loss: - 7.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/16/14: Just as expected the market did see follow through higher on yesterday's afternoon bounce. The IWM added +1.0% but it seemed to struggle with the $112.00 area. Our suggested entry point to buy calls was hit at $112.15. Readers may want to consider waiting for a move above today's high at $112.44 before initiating new positions.

- Suggested Positions -

Long JUN $115 call (IWM1421F115) entry $2.37

04/16/14 triggered $ 112.15

Entry on April 16 at $112.15
Average Daily Volume = 55 million
Listed on April 15, 2014


QUALCOMM Inc. - QCOM - close: 80.18 change: +0.69

Stop Loss: 77.40
Target(s): to be determined
Current Option Gain/Loss: +13.9%
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: see below

Comments:
04/16/14: The bounce in QCOM continues and shares have closed above potential resistance at the $80.00 level. The rebound is encouraging but we are running out of time before QCOM 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: 119.51 change: +1.97

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: - 15.6%
Time Frame: exit PRIOR to earnings on May 15th
New Positions: see below

Comments:
04/16/14: The oversold bounce in AAP picked up speed today with a +1.6% gain. The stock is poised to test resistance at $120.00 soon. Our stop is at $120.25. 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: 59.31 change: +0.37

Stop Loss: 60.35
Target(s): 53.00
Current Option Gain/Loss: -38.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/16/14: AVGO followed the market higher but underperformed the major indices with a +0.6% gain. The stock is poised to test resistance at $60.00 soon. Our stop is at $60.35. I am not suggesting new positions at this time.

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: 86.68 chang6: +1.04

Stop Loss: 88.35
Target(s): to be determined
Current Option Gain/Loss: - 27.6%
Time Frame: exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/16/14: The oversold bounce in LL added +1.2%. I suspect that we will see LL challenge the $88.00 level soon. Our stop loss is at $88.35. 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


CLOSED BEARISH PLAYS

Lockheed Martin Corp. - LMT - close: 159.44 change: +2.05

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:
04/16/14: Defense-related names were showing relative strength today. That may be a reflection of the growing tensions between Russia and Ukraine. We had a stop loss at $158.25 but LMT gapped open higher at $158.44 closing our play. Shares closed just below round-number resistance at $160.00 and technical resistance at its 50-dma (160.81).

- Suggested Positions -

May $150 PUT (LMT1417Q15) entry $2.35*

04/16/14 stopped out on gap open at $158.44, stop was 158.25
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.

chart:

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