Editor's Note:

The S&P 500 index managed gains every day for the holiday-shortened week.

DVN hit our entry trigger. AAP and AVGO hit our stop losses.


Current Portfolio:


CALL Play Updates

Caterpillar Inc. - CAT - close: 102.83 change: -0.10

Stop Loss: 99.75
Target(s): 109.00
Current Option Gain/Loss: -1.3%
Time Frame: exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/19/14: Thursday was a quiet day for the S&P 500 and the Dow Industrials. Shares of CAT followed suit with a mild sideways move. The stock appears to be coiling for a breakout higher but we are quickly running out of time.

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

chart:

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


Devon Energy - DVN - close: 70.70 change: +0.84

Stop Loss: 68.75
Target(s): 74.75
Current Option Gain/Loss: +7.2%
Time Frame: exit PRIOR to earnings on May 7th
New Positions: see below

Comments:
04/19/14: The rally in DVN continued with a breakout past potential round-number resistance at the $70.00 mark. Our suggested entry point to buy calls was hit at $70.35. If you missed the entry I would consider waiting for a dip near $70.00 as an alternative entry point.

We will plan on exiting prior to earnings on May 7th. FYI: The Point & Figure chart for DVN is bullish with a $95 target.

- Suggested Positions -

Long May $70 call (DVN1417E70) entry $1.94*

04/17/14 triggered @ 70.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on April 17 at $70.35
Average Daily Volume = 3.7 million
Listed on April 16, 2014


EOG Resources - EOG - close: 102.45 change: +1.44

Stop Loss: 99.65
Target(s): 109.00
Current Option Gain/Loss: + 9.4%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/19/14: It proved to be a bullish week for EOG. Shares added another +1.4% on Thursday and set a new all-time closing high. I am raising our stop loss to $99.65. I am not suggesting new positions at current levels.

- Suggested Positions -

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

04/19/14 new stop @ 99.65
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.

chart:

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


Diamondback Energy, Inc. - FANG - close: 73.34 change: +2.85

Stop Loss: 68.75
Target(s): to be determined
Current Option Gain/Loss: +55.8%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/19/14: FANG is another energy stock hitting new all-time highs. Shares outperformed the market with a +4.0% gain on Thursday. I am raising our stop loss to $68.75. More conservative traders may want to use a stop loss closer to $70.00 instead.

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*

04/19/14 new stop @ 68.75
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.

chart:

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


Gulfport Energy - GPOR - close: 75.11 change: -0.08

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: - 6.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/19/14: After strong gains on Wednesday shares of GPOR hit a little profit taking on Thursday and closed with a very minor loss. I would not be surprised to see GPOR dip near $74.00 if the energy stocks see any profit taking on Monday. The stock is up six weeks in a row.

- Suggested Positions -

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

04/14/14 triggered @ 74.25

chart:

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


iShares Russell 2000 ETF - IWM - close: 112.92 change: +0.56

Stop Loss: 108.60
Target(s): to be determined
Current Option Gain/Loss: + 2.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/19/14: The bounce in the small cap ETF continued with a +0.49% gain. Thursday's close is also a bullish move above its 10-dma and the 150-dma. The next challenge for the bulls is potential resistance near the $114.00 mark.

- Suggested Positions -

Long JUN $115 call (IWM1421F115) entry $2.37

04/16/14 triggered $ 112.15

chart:

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


QUALCOMM Inc. - QCOM - close: 81.32 change: +1.14

Stop Loss: 78.90
Target(s): to be determined
Current Option Gain/Loss: +40.6%
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: see below

Comments:
04/19/14: QCOM was up every day last week. Shares ended the short week with a +1.4% gain on Thursday and setting a new multi-year closing high.

Earnings are coming up on April 23rd. We do not want to hold over the announcement. I am raising our stop loss to $78.90.

- Suggested Positions -

Long MAY $80 call (QCOM1417E80) entry $1.87

04/19/14 new stop @ 78.90
04/09/14 opened on Wednesday morning.

chart:

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




PUT Play Updates

Lumber Liquidators - LL - close: 86.87 chang6: +0.19

Stop Loss: 88.35
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:
04/19/14: The oversold bounce in LL stalled a bit on Thursday. Shares gained +0.2%. While the overall trend is down the sharp bounce from Tuesday's low left the weekly chart with a potential bullish reversal forming.

I am not suggesting new positions at this time. Our stop loss is at $88.35. More aggressive traders may want to give LL more room to maneuver so consider using a stop loss above the 10-dma (88.55) or the $90.00 level instead.

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.

chart:

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


CLOSED BEARISH PLAYS

Advance Auto Parts - AAP - close: 120.84 change: +1.33

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: - 23.4%
Time Frame: exit PRIOR to earnings on May 15th
New Positions: see below

Comments:
04/19/14: AAP broke through the $120.00 level with Friday's rally. Shares rose to their 20-dma before paring gains. Early Thursday morning shares of AAP were rising rapidly and gapped higher one minute to close our play at $120.27 (instead of $120.25).

- Suggested Positions -

May $115 PUT (AAP1417Q115) entry $3.20 exit $2.45* (-23.4%)

04/17/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
04/11/14 triggered @ 117.25

chart:

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


Avago Technologies - AVGO - close: 60.89 change: +1.58

Stop Loss: 60.35
Target(s): 53.00
Current Option Gain/Loss: -51.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/19/14: AVGO displayed relative strength on Thursday. Shares rallied to and briefly pierced technical resistance at the 50-dma before paring their gains. Our stop was hit Thursday morning in what looked like some short covering. I suspected that a close below $60 could be a new entry point for bearish positions.

- Suggested Positions -

May $57.50 PUT (AVGO1417Q57.5) entry $2.10* exit $1.01** (-51.9%)

04/17/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
04/14/14 triggered @ 58.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

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